Overcoming Cash Flow Disruptions
In the logistics industry, extended invoice terms often lead to significant cash flow challenges for 3PLs, particularly smaller transporters. These delays can be detrimental to operations, hindering growth and sustainability.
Our invoice factoring service addresses these issues by providing quicker payment processes, ensuring that 3PLs can maintain healthy cash flows and operational stability.
What is Invoice Factoring?
Invoice factoring, also known as freight factoring or logistics factoring, is a financial strategy specifically designed for the transportation industry. This process involves selling your accounts receivable invoices to a factoring company at a discounted rate in exchange for immediate cash.
It provides trucking companies with the liquidity needed to cover operational expenses without waiting for client payments.
How Does Freight Factoring Work?
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Step 1
Service Delivery
Deliver the cargo to your clients as usual.
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Step 2
Document Submission
Submit your paperwork (Rate/load confirmation, BOL/POD) to us.
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Step 3
Cash Advance
Receive up to 90% of the invoice value within 24 to 48 hours.
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Step 4
Collection
We take over the responsibility of collecting payment from your clients.
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Step 5
Remaining Balance
Once we receive full payment, we deduct our fee and return the remaining balance to you.
Benefits of Invoice Factoring
Immediate Cash Flow
Get quick access to capital to cover fuel costs, driver wages, equipment maintenance, and other business needs.
No Collateral Required
Unlike bank loans, invoice factoring does not require personal or business assets as collateral. Your invoices serve as collateral.
Credit-Based Approval
Approval is based on your clients’ credit scores, not your own business’s creditworthiness.
Accounts Receivable Management
Let the factoring company handle billing, collections, and reporting, freeing you to focus on core operations.
Risk Mitigation
Protect yourself from bad debts with non-recourse factoring, where the factoring company assumes the credit risk.
Recourse vs. Non-Recourse Factoring
Recourse Factoring
If the client does not pay within the agreed period (usually 60 to 90 days), you must buy back the invoice. This option is typically more flexible and less expensive.
Non-Recourse Factoring
The factoring company absorbs the loss if the client does not pay, offering added protection at a higher cost.
Why Choose ASAP Factoring?
Unmatched Support for Your Logistics Business
Up to 90% Cash Advance
Get the highest cash advance in the industry.
Quick Approval and Funding
Receive funds within 24 to 48 hours of invoice submission.
Expert Support
Benefit from expert advice and support from industry professionals who understand your business.
No Monthly Payment Obligations
Enjoy the simplicity of our factoring service with no monthly payment requirements.
Ready to Improve Your Cash Flow?
Unlock the potential of your logistics business with ASAP Factoring. Get started today and experience the benefits of immediate cash flow, reduced credit risks, and a smoother operational process.
Contact us to learn more and see how we can help you grow your business.
About Us
Our Mission
To empower 3PLs by accelerating their access to capital.
We are dedicated to providing financial solutions that ensure the sustainability and growth of logistics businesses across Africa.
Our Vision
We envision becoming the pioneer of freight factoring across Africa, revolutionizing the logistics industry with our innovative financial services.
Our Founder
Charles Thuo is a visionary logistics leader with a deep connection to Africa and extensive experience in both engineering and logistics.
Educated in the United States, he holds degrees in General Engineering Technology and Aerospace Engineering. His military service as a Captain in the US Army and professional roles at Cessna and Boeing Defense showcase his expertise.
In addition to his corporate experience, Charles brings hands-on logistics expertise as a flatbed owner-operator with KYM Trans LLC. This role has given him invaluable insights into the day-to-day challenges and opportunities within the transportation sector, further fueling his passion to elevate logistics technology in Africa.
As Founder and CEO of Apexloads INC., Charles is revolutionizing Africa's logistics sector with innovative solutions like the Transportation Relationship Manager (TRM) and EAC Profile. His latest venture, ASAP Factoring, aims to empower 3PLs with immediate cash flow through invoice factoring, addressing critical financial challenges in the industry.
Contact us
If you have any questions or are ready to improve your cash flow with ASAP Factoring, reach out to us.
We are here to support your logistics business with the financial solutions you need to thrive.
Frequently Asked Questions
Factoring is the purchase of a business’s accounts receivable at a discount. It’s one of the oldest financing methods used by businesses to generate working capital.
An account is set up with ASAP to sell invoices for goods or services sold and delivered. Rather than wait for the payment terms 45, 60 or 90 days you’ll receive cash within 24 -48 hours of selling the invoice to ASAP. When your customer makes a payment, they’ll send it to us. We will then deduct the initial advance you received and applicable fees, and rebate the balance to you, often called the reserve.
No. You will submit your documents (Rate Confirmation, BOL, etc) to ASAP, from there ASAP will generate and handle the submission of the invoices and the collections process.
Your customer will be sent a notice of where to send the payment and your invoice will also have that information. This is called a notice of assignment.
No.
No, we custom tailor our solutions to each customer’s needs
5-10% of the invoice value depending on volume and payments terms of the debtor
85-90% depending on volume and payments terms of the debtor
ASAP’s collection experts will handle all collections on purchased invoices
This service will only be available in Kenya.
You will have direct online access 24/7 to your reports using your very own unique User ID and Password.
You will be required to either buy back unpaid invoices, swap it out, or deduct the amount from your reserve funds until paid in full.
Yes, a guarantee will be required to affirm you will perform as per the terms and conditions of the agreement.
At ASAP our goal is to approve your file within 24-48 hours.
