Staying In The Black In 2018

Freight transport companies often have to operate under very high expenses. These businesses may routinely run with slim profit margins, because their customers may not make payments for 30 to 90 days. In the meantime, the company owner has to find a way to continue making payroll, repairs, or gas expenses. Freight bill factoring can be a huge help for these businesses, because it gives them an opportunity to get access to the funds they need without delay.

What is Freight Bill Factoring?

Basically, freight bill factoring is a cash advance option for trucking companies. Businesses that use this program can sell their invoices and receive most of the invoice value in cash quickly. They are then free to use the funds in whatever way they see fit for their company needs. The factoring company collects the invoices and then advances the remainder of the value minus their fee.

How Freight Bill Factoring Works

To sign up for freight bill factoring all a company has to do is contact an invoice factoring company and sell their invoices. Generally, the customer who owes the invoices needs to be creditworthy in order for the business to qualify for factoring. The factoring company purchases the invoices and sends the business most of their value (usually between 60 and 80 …show more content…
For one thing, the business can get most of their cash within a week as opposed to waiting up to three months to be paid. Another benefit is the fact that the factoring company assumes the responsibility for collections, which means that the freight company can avoid doing the typical accounts receivable duties that would normally be required. Still another perk that comes with freight bill factoring is that the freight company can get the funds without having to submit to a credit check. This is particularly beneficial to companies that haven't been in business long or that have less than perfect