Bobtail Review

About Company

Bobtail is a company specializing in financial services, providing cash flow management, invoicing services, and financing options specifically tailored for transportation carriers.

The company is dedicated to tackling supply chain inefficiencies, empowering users with streamlined logistics solutions. The company's zero membership fees policy reflects a commitment to simplicity, eliminating costs for transactions and late payments. A key focus is on fuel management, allowing users control and cost savings. The flexibility to fill up anywhere Mastercard is accepted adds convenience. The fleet card enables users to build business credit with weekly credit options for efficient expense management. Bobtail also offers factoring services for reliable funding, including same-day and next-day options from Bank of America.

Notably, there are no long-term contracts, providing users with flexibility in decision-making. Customer service is a priority, with a commitment to responsiveness and reliability. Testimonials highlight Bobtail's positive impact on businesses, emphasizing savings and recommendations.

Key Features

1. Zero Fees. Bobtail distinguishes itself by not charging any fees for transactions, late payments, or other hidden costs. This commitment to transparency ensures that users can make informed decisions without unexpected financial burdens.

2. Fuel Savings. Users can benefit from better control over their fuel expenses, leading to potential cost savings. The ability to fill up at any location where Mastercard is accepted adds convenience to the process.

3. Weekly Credit. Bobtail offers a fleet card that allows users to build their business credit with every fuel purchase. This weekly credit system provides financial flexibility and aids in managing fuel expenses efficiently.

4. Credit Management. The platform enables users to keep track of fuel expenses in one centralized place. Additionally, users can access information about all fueling stations and find the best diesel prices, contributing to informed decision-making.

5. Factoring Services. Bobtail extends its services beyond fuel management, offering reliable funding solutions. Users can factor their invoices with Bobtail, accessing same-day and next-day funding provided by Bank of America.

6. No Long-Term Contracts. Bobtail distinguishes itself by not imposing long-term contracts, allowing users to make factoring decisions independently based on their business needs.

7. Quality Customer Service. Bobtail prides itself on responsive and reliable customer service. The company emphasizes its commitment to answering customer inquiries promptly, providing support whenever needed.

Pros and Cons

Pros

Cons

Reliability

Bobtail stands out as a reliable service provider in the logistics and financial management sectors, earning a noteworthy reputation on Trustpilot with a commendable 4.7 rating. The company's unwavering commitment to cost transparency, exemplified by its zero membership fees policy, underscores its dedication to straightforward and dependable business practices. The streamlined fuel management system, complemented by a responsive customer service team, contributes to the overall reliability of the platform. Bobtail's factoring services further enhance its standing, offering businesses flexible options and a prompt funding focus, resulting in a 4.7 Trustpilot rating. Positive user testimonials echo these experiences, highlighting the company's commitment to delivering dependable financial support. Notably, Bobtail's reliability is reinforced by its strategic association with Bank of America, instilling confidence in users through the backing of a well-established financial institution.

How to Apply for a Bobtail Loan?

Apply for a Loan

Bobtail primarily offers factoring services rather than traditional loans. Factoring involves selling your accounts receivable or invoices to a third party (in this case, Bobtail) at a discount to improve cash flow. This is different from a loan, where you borrow a sum of money and repay it over time with interest.

If you are looking to factor your invoices with Bobtail, the general process might involve the following steps:

1. Create an Account. Visit the Bobtail website and create an account. You may need to provide basic information about your business.

2. Submit Invoices. Once your account is set up, you can submit the invoices you want to factor. This typically involves uploading or entering details about the invoices into the Bobtail system.

3. Review and Approval. Bobtail will review your submitted invoices and may perform due diligence on your business. The approval process may vary based on your business's creditworthiness and other factors.

4. Funding. Upon approval, Bobtail will advance you a percentage of the invoice amount. This can provide you with quick access to working capital.

5. Repayment. When your customers pay the invoices, the remaining balance (after Bobtail's fees) is released to you. Repayment is typically handled through the invoice payments.

Conditions and Requirements

Conditions

1. Creditworthiness Assessment. Businesses seeking services from Bobtail may undergo a credit check as part of the application process to assess their creditworthiness and determine eligibility.

2. Invoice Submission. To utilize factoring services, businesses are typically required to submit detailed information about their outstanding invoices, including customer details and invoice amounts.

3. Mastercard Acceptance Verification. Users of the fuel management services, facilitated through the fleet card, need to ensure that the fueling locations they frequent accept Mastercard for transactions.

4. Compliance with Legal Standards. Businesses must adhere to relevant legal and regulatory requirements and confirm compliance with industry standards when engaging with Bobtail's services.

5. Financial Statements and Documentation. Submission of recent financial statements, including balance sheets and income statements, is often a condition for businesses seeking factoring services to assess their financial health and eligibility.

Requirements

1. Business Information. Legal business name and registration details. Tax identification number (EIN or SSN). Business address and contact information.

2. Operational Details. Description of the nature of your business operations. Industry type and specialization.

3. Financial Documentation. Recent financial statements (balance sheet, income statement). Accounts receivable aging report. Details of outstanding invoices.

4. Banking Information. Business bank account details. ACH information for electronic fund transfers.

5. Invoice Details. Copies of the invoices you wish to factor. Information on the customers associated with the invoices.

6. Mastercard Acceptance. Confirmation of the acceptance of Mastercard at fueling locations where you intend to use the Bobtail fleet card.

7. Technology Compatibility. Compatibility with any digital platforms or software used by Bobtail for invoice submission or tracking.

8. Legal Compliance. Compliance with relevant legal and regulatory requirements. Confirmation of adherence to industry standards and practices.

9. Insurance Information. Proof of insurance coverage if required.

10. Trustpilot Rating. While not a traditional requirement, maintaining a good business reputation, potentially reflected in online reviews and ratings, could positively impact your relationship with Bobtail.

Ways to Receive the Money

1. Advance Payments. Bobtail advances a percentage (usually 70-90%) of the total invoice value to the business upfront. This provides quick access to working capital.

2. Invoice Payment by Customers. After advancing the initial funds, Bobtail waits for the customers (debtors) to pay the full invoice amount on the agreed-upon terms. This could be within 30, 60, or 90 days, depending on the invoice terms.

3. Reserve Release. Upon receiving payment from the customers, Bobtail releases the remaining balance (minus their fees) to the business. This final payment is often referred to as the "reserve release."

4. ACH or Wire Transfer. The funds are typically transferred electronically, either through Automated Clearing House (ACH) transactions or wire transfers, directly to the business's bank account.

5. Online Platforms. Bobtail may have an online portal or platform where businesses can track the status of their invoices, monitor payments, and manage their accounts. Businesses may receive notifications or updates on the status of their funds through these platforms.

Products

The company specializes in logistics and financial management services tailored to the needs of businesses in the transportation and supply chain industries. Key offerings include:

1. Invoice Factoring Services. Bobtail facilitates cash flow for businesses by purchasing their outstanding invoices at a discounted rate. This service allows businesses to receive immediate funds rather than waiting for customers to pay invoices.

2. Fuel Management Solutions. Through its fleet card program, Bobtail assists businesses in managing their fuel expenses efficiently. The card allows users to fill up at any location where Mastercard is accepted, providing flexibility and control over fuel costs.

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Alternatives

RTS Financial

Established in 1986, RTS Financial is a leading provider of factoring services, specializing in supporting trucking companies across the U.S. and Mexico. With a reputation for reliability, RTS Financial offers quick funding, advancing up to 97% of invoice totals within 24 hours through its user-friendly web portal, RTS Pro. The company prides itself on transparent pricing, with no hidden ACH or invoice-uploading fees. Beyond factoring, RTS Financial provides additional valuable services, including a Fuel Card program offering discounts at over 2,000 fuel stations and ProTransport software designed to enhance efficiency and reduce costs for trucking companies.

TCI Business Capital

Since its establishment in 1994, TCI Business Capital has been a trusted partner for businesses spanning various industries, including trucking, staffing, manufacturing, telecom, and oilfield services. Renowned for its flexibility, TCI Business Capital provides funding options of up to $20 million, showcasing some of the highest funding amounts in the industry.Utilizing TCI Business Capital's web portal, businesses can input their average sales, desired payment terms, and choose from advance rates of 70%, 80%, or 90% to receive a real-time quote for applicable fees. However, it's important to note that TCI Business Capital requires a total minimum invoice value of $50,000 per month, making it better suited for businesses with higher transaction volumes.

Aladdin Capital

Since its inception, Aladdin Capital has been a reliable partner for businesses, offering specialized factoring services, including fleet factoring, and managing billing and collections for accounts receivable. Geared towards trucking companies with 10 or more trucks, Aladdin Capital's fleet factoring program provides swift approval for same-day or next-day funding. Beyond factoring, Aladdin Capital extends its support by offering equipment leasing, financing, and regulatory compliance services. These additional services empower businesses to progress without costly missteps. Whether it's financing work computers, specialty vehicles, or office equipment, Aladdin Capital allows businesses to spread the cost of significant purchases over time, facilitating their growth journey.

Apex Capital

Apex Capital stands out as one of the industry's fastest factoring companies, offering swift payment processing, often within minutes of purchasing freight invoices. The accelerated pace is facilitated by Apex Capital's innovative digital payment system, blynk, ensuring secure and timely payments for clients. Inclusive of a comprehensive suite of services, Apex Capital's full-service factoring package encompasses free credit checks, a user-friendly mobile app with image capture capabilities, both recourse and non-recourse options, access to a versatile load board for carriers, shippers, and brokers, and the added benefit of an Apex TCS Fuel Card, delivering substantial fuel savings at an average of 69 cents per gallon. Notably, Apex Capital's commitment to service extends around the clock, providing factoring support for businesses 24/7, even on weekends and bank holidays.

TAFS

As a prominent player in the trucking factoring industry, TAFS excels in delivering dependable accounts receivable (AR) financing. Known for its efficiency, TAFS frequently ensures payment within an hour or two, all while maintaining competitive rates within the industry. TAFS enhances user convenience through its mobile app, enabling clients to effortlessly upload invoices directly from their smartphones. The app also extends additional benefits, including fuel discounts for truckers, complimentary credit checks, and comprehensive back-office support. It's important to note that TAFS functions as a recourse-only factoring company. In this arrangement, if a customer fails to fulfill their invoice payment, the responsibility to cover TAFS' services falls on the client.

Editorial Opinion

Important

How to Choose a Lender

1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.

2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.

3. Carefully review all the terms and conditions of your payday loan contract.

4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Sources

• bobtail.com

• Bobtail.bbb.org