Factoring is the go-to solution for many trucking companies, big and small alike, to not only provide immediate cash flow but also back office support for an operating company.
💰Factoring for trucking companies is all about cash flow. Cash flow keeps a transportation company in business. Freight factoring is about having ready funds for fuel, payroll, repairs, and more. It’s an easy way to manage cash flow for your trucking company. Factoring company buys invoices for freight that you’ve already delivered, so it’s money that is advanced on accounts receivable.
Freight factoring keeps the cash flowing so you can keep hauling.🚚
📆The average days for brokers and shippers to pay the carrier is somewhere between 3️⃣0️⃣-4️⃣5️⃣ days, about 70% of invoices are paid late. When you submit your invoice to the factoring company, you get your payment the same day or next day. The factoring company is then responsible for collecting on the invoice, even if it pays late. So, factoring your invoices for fast payment can be a good way to avoid delayed payments.
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