As a freight broker, you need to focus on speed, reliability and building good relationships with carriers.
Factoring companies need to focus on the same things, both with brokers and carriers. The reality is that factoring companies understand the transportation industry and all of the intricacies involved in operating in that space. Whether paying carriers on behalf of brokers, or just working carriers directly, factoring companies see nearly every piece of paper associated with the load. More importantly, they understand how long it can take to get paid by a shipper or broker.
Freight brokerages often struggle to fund their businesses because conventional financing routes such as bank loans or expensive merchant cash advances don’t always provide a solution that is tailored to the transportation industry. One-size-fits-all doesn’t always work in an industry that is constantly changing.
Factoring on the other hand gives you immediate access to cash without incurring debt. The factoring company will pay your carriers as soon as they deliver your load. You pay a small factoring fee for the benefit of paying your carriers sooner and getting an advance on your payment from the shipper.
The most common reason for freight brokers to choose factoring is improving cash flow. You can pay your carriers, your insurance and taxes, and other overhead expenses without waiting 30 or 60 days or even longer to get paid for loads.
When you partner with a factoring company, you will be able to issue payments to your carriers as soon as you send us your invoices, which means that you can continue doing business and cover your costs while focusing on making money instead of waiting for your clients to pay you.
Some of the benefits that freight brokers receive when they partner with a factoring company
- Finance QuickPays to your carriers with the factoring company’s funds
- Provide fuel advances to your carriers with our funds
- Funding within 24 hours
- Credit approval for your shippers
- Uncapped financing — factoring grows with you as you grow
- Applying and qualifying for freight brokerage factoring can be easier and faster than traditional bank loans – and comes with special benefits tailored to logistics companies.
Contact us for a factoring rate quote today.