Insight into Freight Factoring and How It Works
Running a freight company is not a cakewalk. You need to be much more than a manager or an owner. You have to do the tasks of an accountant, human resource department and also the marketing department. Freight factoring or trucking factoring makes the job easy for you by helping you manage your cash flow in an effective manner. Insight into freight factoring The business of freight is quite simple. You need to pick up goods at a location, deliver them to the other and the broker or shipper will pay you for the service. Your profit is the amount you get paid excluding the costs for delivering cargo. However, it is important to note that you do not get paid for the profit straight away. The average as per the industry standard is 40 days and certain companies can take around 90 days to deliver invoices. This is quite a long time to wait for payment. Freight factoring permits you to sell that invoice to a factoring company. You get paid for the job immediately in exchange for a servi