![]() ![]() ![]() The biggest thing to consider is the reliability and trustworthiness of the company. There are a lot of freight factoring options out there, so it’s critical that you know what to look for when comparing the top factoring companies for trucking. Your Guide to Choosing a Freight Factoring Company Factoring lets you get paid for loads right away without needing to get a loan or incur debt to access the money you earned. When a factoring company buys your invoice, it now owns that invoice and you are no longer responsible for it. The most important point to remember when it comes to factoring is that this process is not lending. That means you get the money you’ve earned right away instead of having to wait a month or even longer for a broker to pay your invoice. After collecting a small percentage, the factoring company pays the carrier for the invoice within as little as 24 hours. After all, to enjoy the many benefits of factoring, you need to be sure you’re working with a company that meets your specific needs.īefore you decide which partner to work with, however, it’s important to fully understand what freight factoring means and what you should look for when considering the best freight factoring companies for your business.įreight factoring is when the individual or operation that delivers a load sells their invoice to a factoring company. That’s why we’ve put together the five best options to help you pick the perfect fit.Ĭhoosing whether or not to factor your loads - and if so, which factoring company to work with - is a pivotal decision for any trucker. If you are interested in freight bill factoring you will typically need to deal with a factoring company that specializes in this area.Īlthough you may get the attention of a diverse factoring company, one that specializes in transportation funding can provide the quickest service and the best price.Finding the right freight factoring company can be a challenge. Once the account has been set up, funding occurs at the same speed as tradition factoring transactions, usually within 24-48 hours. Although profits can be great, it can be challenging if you are still waiting to get paid and your expenses are immediate. Operational expenses include fuel, truck repairs, and rentals. This can be a big help to start up companies or companies with a less than perfect track record wanting to finance their business.Īlso called “Transportation Financing,” this industry has cash flow challenges like any other business. Like traditional underwriting methods, the factor will look at the customer or debtor for the strength of the deal, not the trucking company itself. The freight company delivers the goods and their compensation, like most transactions, is in the form of invoice. One advantage is that the freight company itself is unlikely to get any “offsets” that the creator of the goods might. It’s easy to think it has something to do with financing the truck itself, but in reality it is surprisingly similar to traditional invoice factoring.Ī freight factoring company is interested in factoring invoices on freight bills. ![]() You may have heard ads on the radio offering Truck Factoring or Freight Bill Factoring. ![]()
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