TBS Factoring Review: Unbiased Analysis for 2023

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Written By Randall Henson
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TBS Factoring Service is a well-established freight factoring company that aims to assist businesses in the transportation industry by providing various services, including financial solutions. With their offerings, they help clients streamline operations, manage cash flow, and navigate the complexities of running a successful trucking company. As with any service provider, potential clients need to evaluate TBS Factoring’s performance and offerings to make informed decisions.

Customer reviews on TBS Factoring Service are quite mixed, with some praising the company’s support and efficiency, and others expressing concerns or dissatisfaction. According to Trustpilot and Google Reviews, TBS Factoring has received average ratings of 3.2/5 and 3.1/5, respectively. Positive feedback often highlights the speed of the business and the customer service provided, while negative reviews tend to focus on individual experiences.

In this article, we will delve deeper into TBS Factoring Service’s offerings, the experiences of customers who have collaborated with them, and the various aspects that contribute to their standing in the industry.

TBS Factoring Overview

About TBS Factoring Service

TBS Factoring Service is a freight factoring company based in Oklahoma City, providing a wide range of services that cater to motor carriers, owner-operators, and small trucking companies. The company focuses on offering cash flow solutions, compliance assistance, and business support to ensure the success and growth of its clients.

Company History

TBS has more than 50 years of experience in the industry, demonstrating its long-standing commitment to serving motor carriers and trucking companies. Over the years, TBS Factoring Service has established itself as a trusted partner for trucking businesses, leveraging its expertise in technology and compliance.

Leadership and Management

The leadership at TBS Factoring Service boasts a wealth of experience in the industry. Under their guidance, the company continues to innovate and evolve, ensuring that it stays at the forefront of the freight factoring space and remains a reliable partner for trucking companies all around. Their hands-on approach to managing the company ensures that they remain committed to meeting the needs of their customers.

TBS prides itself on its customer service offering and maintains a high standard for its team. The management ensures that the staff is knowledgeable, responsive, and ready to address the needs of clients in a timely manner.

The solid leadership at TBS Factoring Service has helped the company garner mixed yet mostly positive reviews from customers. It scores a 3.2/5 on Trustpilot and 3.1/5 on Google Reviews, with the majority of their customers praising the speed of their services and the quality of customer support provided.

Factoring Services and Programs

TBS Factoring offers a range of factoring services and programs designed to meet the needs of various businesses, especially those in the trucking industry. This section will cover some of their primary offerings, including Freight Factoring, Non-Recourse Factoring, Recourse Factoring, Fuel Card Program, and Payroll Services.

Freight Factoring

Freight Factoring is one of the core services offered by TBS Factoring. This service caters specifically to the trucking industry, helping carriers and owner-operators improve their cash flow by converting unpaid invoices into immediate cash. TBS Factoring provides quick funding, with some customers praising the speed of their services. They also offer a “No BS” approach with no hidden fees, as mentioned in some reviews.

Non-Recourse Factoring

Non-Recourse Factoring is a factoring option that shifts the risk of non-payment from the client to the factoring company. If a debtor does not pay the invoice, TBS Factoring will not hold the client responsible for the unpaid debt. This type of factoring provides added security for businesses, as they are not liable for any potential collection issues.

Recourse Factoring

On the other hand, Recourse Factoring is a more affordable factoring option wherein the client remains responsible for the unpaid invoices if the debtor fails to pay. This type of factoring may come with lower fees, but it carries more risk for the business, as they may need to repay the factoring company if their customers don’t fulfill their payment obligations.

Fuel Card Program

The Fuel Card Program offered by TBS Factoring aims to help trucking companies save money on fuel costs. By participating in this program, businesses can access discounts at participating gas stations and benefit from fuel management tools that can help streamline operations. The fuel card program could significantly help in reducing expenses and improving cash flow for trucking companies.

Payroll Services

Payroll Services provided by TBS Factoring help businesses efficiently manage their payroll processes. By outsourcing this crucial task to a professional company like TBS Factoring, businesses can focus on their core operations while ensuring that their employees are paid accurately and on time. This service eliminates the need for in-house payroll management, which can be time-consuming and error-prone.

In summary, TBS Factoring offers a variety of factoring services and programs tailored to the needs of businesses, predominantly in the trucking industry. From Freight Factoring to fuel card programs, these services aim to help businesses overcome cash flow challenges and improve operational efficiency. While some negative reviews have been reported, many customers appreciate the speed and transparency that TBS Factoring provides.

Application and Setup Process

Requirements and Eligibility

To apply for TBS Factoring services, you must have a commercial transportation business with invoices from creditworthy customers. TBS Factoring doesn’t require a minimum time in business to qualify, but certain permits and documentation are needed. For instance, you need a DOT/MC number and a UCR permit for interstate operations.

Credit Checks and Underwriting

TBS Factoring conducts credit checks on your customers to ensure they have a good payment history. Their underwriting department is responsible for analyzing customer creditworthiness to minimize risk when providing factoring services. By performing background and financial evaluations, they can offer both recourse and non-recourse factoring options based on the individual client’s needs.

Sign-Up and Account Activation

The sign-up process with TBS Factoring is relatively streamlined. Once you submit the necessary documents, TBS Factoring takes care of the setup, including assistance in obtaining your DOT/MC number and UCR permit if needed. An account activation typically occurs within a few days of submitting your application and required documentation.

Customer Experience and Support

Communication and Service Quality

TBS Factoring provides customer service for their clients and drivers that involve strong communication along with quality service. The company has received mixed opinions regarding its customer support. Some customers praise the speed of their business and the level of customer service they provide, while others have claimed longer response times or inconsistencies. Despite this, TBS Factoring maintains a commitment to addressing customer complaints promptly and thoroughly.

Account Executive and Representatives

Personalized assistance is offered by TBS Factoring through dedicated account executives who work closely with clients to address their needs. Traci, for example, is a representative who has been praised by customers for her professionalism, helpfulness, and the advice she provides. Having access to a knowledgeable representative can make a significant difference for customers seeking support and guidance on their factoring needs.

Online Tools and Technologies

TBS Factoring’s online tools and technologies, such as the TBS: Get Paid® app, enhance the customer experience by simplifying processes and providing real-time updates on invoice statuses. The app allows clients to manage their account, submit invoices, and stay informed on their factoring transactions. While not explicitly mentioned in customer reviews, these types of technologies generally provide an added layer of convenience for customers and increase overall satisfaction with the service.

Pricing and Fees

Factoring Fees and Rates

TBS Factoring offers competitive factoring fees and rates for trucking companies, owner-operators, and freight brokers. The fees vary depending on the client’s business, volume, and the number of factored invoices. Generally, TBS Factoring charges between 1% to 5% as factoring fees. It is crucial to carefully review the terms and conditions to understand the full details of the fee structure.

Advance and Reserve Rates

With TBS Factoring, clients can receive an advance on their factored invoices, typically within the range of 90% to 95% of the invoice value. This allows truckers and freight brokers to access funds quickly and maintain steady cash flow. The remaining 5% to 10%, known as the reserve, is held in escrow until the invoice is paid by the debtor. After deducting the factoring fees, the remaining reserve amount is then released back to the client.

Additional Costs and Charges

While TBS Factoring’s primary cost is the factoring fees, there may be additional costs and charges that clients should be aware of. These can include fees for:

  • Wire transfer or ACH payments
  • Fuel card program
  • Credit checks on brokers and debtors
  • Invoice submission, processing, or collection fees

It is essential for clients to review the details of these costs in their factoring agreement and discuss any concerns with TBS Factoring representatives. By understanding the complete fee structure, clients can make informed decisions and choose the best factoring solution for their needs.

Reviews and Testimonials

Positive Experiences and Feedback

Many customers have praised TBS Factoring for its speed and customer service. The company has received a significant number of 5-star ratings on platforms like Trustpilot and Google Reviews. Some customers specifically mentioned the helpfulness of TBS Factoring representatives, such as Lisa Smith. According to these positive reviews, TBS Factoring has been consistent in providing excellent “genuine” and sincere customer service.

Here are some highlights from positive customer feedback:

  • Fast processing of invoices
  • Exceptional customer support
  • Helpful and knowledgeable representatives, including Lisa Smith

Complaints and Negative Experiences

Despite numerous positive reviews, TBS Factoring has also garnered some negative feedback. Some customers have experienced delays in responses or, in some cases, felt ignored or misled by the company. These experiences can be found on the BBB (Better Business Bureau) website, where a few customers have complained about TBS Factoring’s impact on the trucking industry, accusing them of unethical practices.

Here are some common complaints:

  • Slow or no responses to inquiries
  • Confusion over terms and conditions, as well as invoice processing
  • Perceptions of dishonesty or hidden fees in specific cases

In conclusion, while TBS Factoring has received both positive and negative reviews, it’s essential to weigh both sides of the customer experiences before making informed decisions about whether their services are right for your business.

Common Concerns and Resolutions

Resolving Disagreements and Disputes

When transitioning to a different factoring company, clients may encounter disagreements and disputes related to the services provided. As clients have the right to choose a factoring company that aligns with their needs, it’s essential for both parties to work together toward resolutions.

In the case of TBS Factoring, there have been mixed customer reviews with both positive and negative experiences. Some customers raised concerns about delayed responses to emails or phone calls, which led to dissatisfaction with the company. To mitigate such issues, TBS Factoring can:

  • Improve communication: Developing a faster response time, open channels of communication, and setting clear expectations can help ease any tension between the company and its clients.
  • Clarify policies and procedures: Ensuring that both parties understand the policies and procedures is key to reducing misunderstandings or disputes. TBS Factoring should make sure their clients have access to all relevant documentation.
  • Consistent follow-ups: Regular follow-ups, especially during a client’s onboarding process or when transitioning from another factoring company, can help build trust and rapport between TBS Factoring and its clients.

Policy and Procedure Adjustments

Another potential concern is the need for adjustments in policies and procedures when transitioning to TBS Factoring or when clients find certain aspects of their policies unsatisfactory. To create a positive experience for clients, TBS Factoring can implement the following practices:

  • Flexible policies: By offering flexible policies, both TBS Factoring and its clients can negotiate terms that are fair and mutually agreed upon. This allows clients to feel more comfortable and secure in their agreement.
  • Regular updates and reviews: Regularly reviewing and updating policies ensures that they remain relevant, effective, and beneficial to all parties involved. Communication of any changes is key to avoiding confusion or dissatisfaction from clients.
  • Client feedback and improvement: Engaging with clients and encouraging them to provide feedback can lead to essential adjustments in policy and procedures that ultimately lead to better service offerings.

By addressing these key areas in resolving disagreements and disputes, as well as making necessary policy and procedure adjustments, TBS Factoring can create stronger relationships with clients and improve overall customer satisfaction.

Starting and Growing Your Own Trucking Company with TBS

Establishing Authority and Permits

TBS Factoring Company offers services to help new owner-operators establish their authority and obtain essential permits required for running a successful trucking business. As a part of the TBS family, you will receive guidance and support in obtaining necessary DOT/MC numbers, obtaining insurance, and ensuring compliance with various transportation regulations.

Financing and Cash Flow Management

Managing cash flow is crucial for any trucking company’s success. That’s where TBS comes into play. With factoring rates as low as 1.25%, TBS helps trucking companies maintain a healthy cash flow by providing fast and reliable financing options. They provide services that help truckers and owner-operators get paid faster and stay ahead with their financial management.

TBS Factoring features:

  • Competitive factoring rates: As low as 1.25%
  • Fast payment processing: Expedite your invoice payments
  • Flexible terms: Choose from a variety of contract options

Networking and Client Development

Building a network of shippers and clients is essential for growing your trucking business. TBS assists in helping truckers find loads and develop lasting relationships with clients in the transportation industry. They provide support for networking and client development, which is vital for your company’s growth while using their technology and services.

Key networking benefits with TBS:

  • Access to load boards: Connect with potential clients and discover more job opportunities
  • Compliance support: Stay up-to-date with industry regulations and changes
  • Customer service: Benefit from personalized assistance and guidance throughout the process

By partnering with TBS Factoring Company, trucking companies and owner-operators receive valuable support in starting and growing their businesses. From establishing authority and permits to managing finances and developing a robust network of shippers and clients, TBS provides an all-around solution for those pursuing a successful trucking venture.

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