Your Frequently Asked Questions
There’s a lot to keep track of — we get it! We’re here to help with any questions you may have. Below, you’ll find answers to some of our most frequently asked questions.
Frequently Asked Questions
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What is factoring?
Factoring is a powerful financial solution that empowers you to optimize your cash flow effectively. With Partners Funding, you can effortlessly convert your outstanding invoices into a thriving checkbook balance. Our services come with a minimal fixed fee and absolutely no monthly minimums, ensuring that you receive your much-needed cash expeditiously.
What is the difference between recourse and non-recourse factoring?
Recourse factoring is a beneficial option for larger trucking companies that are willing to take on customer credit risk. This program offers the advantage of lower fees and the security of a financial reserve. On the other hand, non-recourse factoring allows Partners Funding to assume credit responsibility, although the factoring fee may be slightly higher. Interestingly, with non-recourse factoring, Partners Funding does not hold any reserve until the invoice is paid. This particular type of factoring is particularly well-suited for trucking companies that operate with one to five trucks.
What are Partners Funding factoring fees?
At Partners Funding, our factoring fees are determined by the amount of invoices you choose to factor each month, the average payment timeline of your customers, and the specific factoring program you select, whether it's recourse or non-recourse.
How long does it take to get paid?
Partners Funding provides complimentary ACH transfers (direct deposit) within 24 hours of invoice purchase. Yes, you heard it right, absolutely FREE! Additionally, we offer fast same-day wire transfers for a nominal fee.
Do I have to factor all of my invoices?
While it is not mandatory to factor all your customers with Partners Funding, it is important to note that once a customer's account has been factored, it must remain as a factored account. However, if all open invoices are paid, you have the option to request the release of your client. This grants you the freedom to self-bill that customer moving forward.
Does Partners Funding have a monthly minimum?
Partners Funding offers a no-obligation policy without any monthly minimums!
How long does it take to get set up with Partners Funding?
Get started on your funding journey with Partners Funding and experience the speed of our process. Within just 24-48 hours of submitting your completed application and factoring agreement, you could have the funds you need to fuel your business.
How do I know if my customers are credit-worthy?
Partners Funding provides our valued clients with round-the-clock, unrestricted access to our cutting-edge online customer search engine. Additionally, we extend a warm invitation to our clients to reach out and connect with any of our experienced credit team members at any time.
What paperwork will Partners Funding require when purchasing my invoices?
Partners Funding will need the invoice from your trucking company, the broker's rate confirmation (if applicable), all signed proof of delivery and bill of lading, as well as any additional paperwork required by the customer for invoice payment.
Will Partners Funding require original proof of delivery to purchase invoices?
Partners Funding will only request original proof of delivery to buy your invoices if your customer insists on having original proof of delivery to settle your invoices.
I am a new trucking company. Can I factor with Partners Funding?
While it is necessary for Partners Funding that you operate under your own authority, we gladly collaborate with newly established trucking companies on a daily basis! If you require operating authority, do not hesitate to get in touch with our Authority Department today!
Are there set up fees with Partners Funding?
There are no other charges linked to your account, apart from the fees incurred while funding an invoice.
Does Partners Funding have a fuel card?
Discover the benefits of the EFS FTS Discount Fuel Card through Partners Funding, your trusted reseller. Reach out to us today and let us provide you with more information.
Is it a lengthy process to sign up?
The most time in our factoring setup is spent discussing the tailor-made program designed to ensure factoring is right for you. The process involves simply filling out the application, completing factoring documents, and getting final approval.
How long does approval take?
The approval process may take 1-7 business days until first funding. After approval, funding usually occurs within 24 hours.
I am a new business without much history. Is factoring right for me?
If you are a new business faced with a large customer concentration demand, factoring may be perfect for you. In some cases, it may be the competitive edge you need! By factoring, you have the cash available to pay operational costs and supply the customer continuously.
How will my customers be treated?
This is a common concern heard by Partners Funding. Partners Funding becomes an extension of your company and treats your customers as such. As you know, it is of the utmost importance to treat customers with courtesy and respect. Please feel free to contact our client references to answer this question or for additional information.
Does Partners Funding compete with banks?
We provide factoring services, something a bank does not typically provide. We provide a product that complements a bank’s lending services. We become partners whose common goal is helping our mutual clients.
What are the requirements for factoring?
Each business is unique and different requirements may arise. The factoring process puts more emphasis on your customer’s ability to pay. Factoring requirements are reviewed on a case-by-case basis.
What if my company had a financial loss last year?
The bank may not be able to help when faced with a financial loss. That’s where we come in. Partners Funding looks at your business processes and the customer’s ability to pay.
Is it expensive to factor?
Typically, you will find that factoring is more expensive than traditional funding sources. But as factoring demand increases, the cost of factoring is decreasing. The additional services Partners Funding provides, such as accounts receivable credit and collections management, reduce the cost of extra employees and time.
Is factoring a loan?
In the strictest sense of the word, it is not. You do not incur additional debt. You actually make use of an asset — accounts receivable.
Are there issues that can lengthen the application process?
Felony convictions, federal tax liens, active bankruptcies, SBA loans, and numerous company shareholders are topics to be discussed prior to the application process.
Is factoring relevant for both invoicing to businesses and individuals?
The factoring industry is a “business to business” industry servicing only invoices billing other businesses.
IFTA & quarterly fuel & mileage tax reporting
The International Fuel Tax Agreement (IFTA) is an agreement among jurisdictions in the United States and Canada. IFTA simplifies the reporting of miles traveled and fuel used by motor carriers operating in more than one jurisdiction. A carrier receives an IFTA license and 2 decals for each qualified vehicle it operates from their base state. The carrier is then responsible for filing a quarterly fuel tax return. This tax return is used to determine the net fuel tax owed or tax credited to the carriers. The carrier also distributes taxes between the states and Canadian provinces.
IFTA tax is required for motor vehicles used, designed, or maintained for the transportation of persons or property with:
- 2 axles and a registered gross vehicle weight over 26,000 pounds, or
- 3 or more axles regardless of weight, or
- Is used in combination and the weight of the combination exceeds 26,000 pounds
Feel free to contact Great Plains to learn more about our Fuel Tax Services!
IRP/Prorate registration
The International Registration Plan (IRP) is a registration agreement between jurisdictions in the United States and Canada. It allows vehicles traveling in two or more jurisdictions to register with their base state rather than registering with each jurisdiction the vehicle travels. Qualified vehicles are any power unit that:
- Has two axles and a gross weight or registered gross weight over 26,000 pounds; or
- Has three or more axles regardless of weight; or
- Is used in combination and the weight of the combination exceeds 26,000 pounds.
Mileage account applications, supplements, and renewals
Some states have mileage tax in addition to or in lieu of IFTA tax, specifically Kentucky, New Mexico, New York, and Oregon. A carrier can purchase trip permits prior to entry directly from the state. The carrier pays the mileage tax at the time of trip permit purchase or establishes a mileage tax account with the state and files quarterly mileage tax returns.
USDOT applications & updates
USDOT numbers are issued by the Federal Motor Carrier Safety Administration (FMCSA). USDOT numbers serve as a unique identifier when collecting and monitoring a company's safety information acquired during audits, compliance reviews, accident investigations and inspections.
- A USDOT number is required for vehicles that travel interstate, haul cargo or have passengers and meet 1 or more of the following criteria:
- A gross vehicle weight rating or gross combined weight rating of 10,001 pounds or more, whichever is greater, or
- Designed or used to transport more than 8 passengers (including the driver) for compensation, or
- Designed or used to transport more than 15 passengers (including the driver) and is not used to transport passengers for compensation, or
- Transports hazardous materials
Carriers who only travel intrastate are required to obtain a USDOT number if transporting hazardous materials or traveling intrastate in a state requiring an intrastate DOT number.
Intrastate authority applications
Transportation within a single state is known as intrastate commerce. Some states require an operating authority to haul within the boundaries of the state.
FMCSA for-hire and brokerage authority applications
Carriers transporting federally regulated commodities for a fee or other compensation in interstate commerce are required to obtain a federal for-hire authority (MC permit) from FMCSA. The carrier is required to carry a copy of the MC permit in each truck. A person or company arranging for the transportation of property by a motor carrier is also required to obtain a brokerage authority (MC permit) from FMCSA.
Process agent filings
A process agent is a representative in each state to whom court documents can be served to should a proceeding be brought against a carrier, broker or freight forwarder. A process agent filing is required for carriers operating interstate or hauling federally regulated commodities under a federal authority (MC permit).
- Under the new Unified Carrier Registration System, all motor carriers of property and passengers will be required to have a process agent filing.
Unified Carriers Registration (UCR)
Unified Carrier Registration (UCR) applies to all passengers, property and private carrier operating commercial vehicles in interstate commerce as well as freight forwarders, brokers and leasing companies. Annual registration and fee payment is required.
IRS 2290 HVUT filings
As required by the Internal Revenue Service (IRS) the Excise Tax Form 2290 Heavy Vehicle Use Tax (HVUT) return is used to calculate the total road use tax due on vehicles registered for a gross weight of 55,000 pounds or greater. The form is also used to report vehicles where the tax is suspended; those vehicles operating 5,000 miles or less or agricultural vehicles traveling 7,500 miles or less. The HVUT tax period is July 1 through June 30.
- A copy of the HVUT Schedule 1 stamped "received/paid" by the IRS is required as proof of payment of the HVUT and must be presented in order to obtain vehicle registration.
Sole proprietor EIN applications
An employer identification number (EIN), also known as a federal tax identification number (FTIN), is used to identify a business entity or individual required to file and pay excise tax. The IRS Form 2290 Heavy Vehicle Use Tax (HVUT) can only be filed using the taxpayer's EIN.
Minnesota commercial vehicle title transfers
All vehicles owned by Minnesota residents or Minnesota-based IRP carriers require a Minnesota title.
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Vehicles that will be IRP registered and are purchased from a Minnesota licensed dealer require the dealer to file a title application, including sales tax payment.
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Out of state or private purchase title application should be filed via the IRP plate application.
In both cases, sales tax will be calculated based on the IRP fleet miles.
Minnesota secretary of state assumed name registration & renewals
a) Any sole proprietor conducting business in Minnesota under a name that does not contain the full name of the individual must file a Certificate of Assumed Name with the Minnesota Secretary of State.
b) Any business entity (corporation, limited partnership, limited liability company, etc.) conducting business in Minnesota under a name other than the exact legal name of the entity must file a Certificate of Assumed Name with the Minnesota Secretary of State.
After filing an application, the secretary of state issues a Certificate of Assumed Name that must be published for 2 consecutive issues in the county where the principal place of business is located. Certificates of Assumed Name are valid for 10 years.