Freight Factoring

In the trucking industry, smooth cash flow is imperative to survive as a business. However late payment by shippers and brokers typically strains finances, and payment for fuel, maintenance, and operations becomes a matter of concern. It is at this juncture that freight factoring companies come to the rescue. An effective freight factoring service facilitates truckers' earlier receipt of payment, ensuring better cash flow and smoothness in operations. If you are a trucker or fleet owner looking to shore up your finances, this book will walk you through everything you need to know about freight factoring, from how it works to which companies to use and how to choose the optimal service for your business. How Freight Factoring Works:     • You offload the load and present the invoice to a freight factoring firm.     • The factoring business checks the invoice and pays a percentage of the invoice value (typically 80-95%).     • As soon as the broker or shipper...

  A steady cash flow that will keep the operations running in this fast-paced trucking and logistics world is essential. Among the financial options available to help trucking companies convert unpaid invoices into quick cash is freight factoring. This service has gained favor with businesses of all sizes, but not all freight factoring companies are created equal. The wrong choice of partner will only add costs, cause headaches, and miss out on opportunities. To help you not end up making the wrong choice, we have listed some of the common mistakes in choosing the best freight factoring company to guide you in deciding. 1: Focusing on Low Rates Alone It is very easy to zero in solely on the factoring rates when comparing companies. Competitive rates do matter, of course, but there is much, much more at stake with the decision. Some firms boast very low rates but then tack on a behind-the-scenes price for credit checks, invoice processing, or even just account maintenance. Such addi...