Freight bill factoring is a type of business funding that carriers and brokers use to finance freight bills with slow payments. Operating a trucking company is not easy. Despite drivers and trucks incurring maintenance costs on the road, payments are usually made after freight is delivered to the destination. With some shippers holding payments for up to two months, the situation increasingly becomes more complex.
As a result, your freight company struggles with growth and finds it hard to keep up with delayed payments. This is where freight invoice factoring chips in to salvage the situation. In addition to offering you funding, the service funds your open freight bills. Therefore, it comes in handy as a solid business financial platform your company can rely on to grow.
Although some people find factoring to be such a hassle, it is not the case. The straightforward and simple financial solution can greatly benefit your company. Freight broker factoring services can provide you with the exact amount of money you expect as payment from your customers after delivery. This saves you from having to wait for 60 days before your client makes payment for the delivered freight.
It also saves you from debt because you neither have to use credit cards nor borrow money. As a result, your business enjoys consistent cash flow and allows you to avoid likely mechanical issues (that would cause you headaches and cost you money) with your fleet because you can pay for truck maintenance.
Freight invoice factoring involves rebate and advanced payment techniques. Advance payments make up 90% of your freight bills and are given to you the moment you deliver loads to your clients and send invoices to them. On the other hand, rebate covers the remaining 10% of your freight bill with fee deductions. Once your client pays the freight bill invoice, you get rebate payment.
However, the freight invoice factoring service is not for everyone in freight business despite the benefits it offers. You do not need the services of factoring companies for trucking if either you don’t require money to sustain your company or have abundant resources you can use instead. The service, though, is critical to companies in distribution and logistics due to their urgent nature of business and how they operate.
Still have some doubts on how freight invoice factoring works? Click here to find out more.
Freight Invoice Factoring Requirements by Trucking Factoring Companies
Freight invoice factoring requirements and the process of approval are completely different from those used by banks. Even so, the factor needs payment assurance from your clients and thus the requirements. If you are considering freight invoice factoring for your freight business, here are the things factoring companies for trucking are likely to ask for:
- Possession of liens-free freight bills
- Possession of all the relevant licenses and documentation required for the business case
- Be a genuine freight or carrier broker
- Have reliable clients who are creditworthy
The Best Freight Bill Factoring Company
You have many local freight factoring companies at your disposal. Carter Founding Corporation is a reliable and flexible logistics and distribution factoring provider your freight business can count on. Having been in the industry for decades, they understand how the freight industry works and the urgency with which it operates, not to mention the kind of working capital that is needed to sustain the business.
The factoring company for trucking processes your freight business applications, verifies them and approves requests within a day. Carter Founding Corporation ensures that your freight business receives the funds it needs for sustainability within three business days. Do you want to know more about the Carter Funding Corporation’s logistics and distribution invoice factoring services? Click here for more details.
With the right factoring company for trucking, you do not have to wait for two months before you receive freight bill payments from your clients. You can still sustain your business operations by improving your business cash flow. Make sure you choose a company with a proven track record of offering the best factoring services in the industry.
Contact Carter Founding Corporation today for truck factoring services you need to enhance your business cash flow