What is Freight Factoring?

Описание: Brief overview of what is Freight Factoring.
Freight Factoring is a tool used by trucking companies to help with their cash flow. Usually after a driver delivers a load, he invoices the broker for that load. Then he waits 30, 60, or even 90 days to get paid by the broker he invoiced.

A lot of owner operators and trucking companies can’t afford to wait that long to get paid. There are operational expenses that need to be covered and they need immediate cash flow to run the business. You need to have enough money to pay for fuel, to pay for any truck repairs, pay drivers as well as invest in growing the business.

That’s where a factoring company comes in.

Instead of invoicing the broker for the delivered load, you sell that invoice for a small fee to your factoring company. Factoring company then funds your invoice the same day. You get paid right away without having to wait for weeks or months to get paid by your broker. Factoring company then invoices the broker and waits to receive that payment.

And that’s how factoring your invoices can help you get quick access to the cash you have already earned - helping you grow your business faster.
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