Associates Commercial Corp., one of the nation’s largest truck equipment finance companies, has purchased Transport Clearings, a leading provider of freight bill factoring services.
The move puts Associates Commercial near the top of a growing, but risky business that caters to the needs of cash-strapped, mostly smaller trucking companies.
Factoring companies take over the collection of accounts receivable in return for a fee and cash advances.
The first factoring companies were organized by trucking companies. Transport Clearings, in fact, began as a cooperative in 1942 and continued to be owned by a group of carriers after converting to a for-profit corporation in 1957.
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