Accounts receivable factoring – getting paid in advance before invoices are due – provides an excellent cash flow solution for companies in a variety of industries. Transportation professionals working in the freight industry find that factoring is a particularly good fit for their needs. With the industry’s high operating costs, including fuel, repairs, and truck payments, a steady income is essential to keep trucks on the road and the freight moving. Yet many trucking company customers can take 30, 60, or even 90 days to pay their freight bills. Freight factoring works very effectively to bridge the gap between picking up a load and getting paid by the shipper or freight broker.
The back office support offered by freight bill factoring companies – credit checks on brokers and shippers, invoice preparation and delivery, document processing and recordkeeping, and professional collections services – is invaluable for truckers on the move. In addition, some factoring companies that specialize in freight factoring have developed extra services to support motor carriers and freight brokers. Not only do trucking companies receive payment or fuel advances before they deliver the freight, they also can take advantage of fuel discount cards, tire and maintenance discount programs, free freight-matching load boards, and other benefits. Freight factoring companies know the industry and are firmly committed to helping their transportation clients grow and expand their businesses.
Benefits of Freight Factoring
- Accelerated cash flow with advances on freight bills
- Back-office support for truckers on the road
- Additional free services and benefits tailored to transportation clients