The trucking industry is wrapped with endless challenges. From paying taxes, rising fuel cost, and daily expenses to other unexpected adversities, truck drivers are bound to face all of these. And even if they get used to the challenges, it doesn’t mean it gets easier. Sometimes, truckers need help. Freight factoring may be the solution.
was conceptualized to help solve truckers’ financial dilemmas. The idea is simple. Say, you’re a driver who just transported goods to your customer. And instead of waiting for weeks to receive the payment from your client, you submit the invoice to a freight factoring company. Near instantaneously, you receive payment from the factoring company.
Advantages of freight factoring?
It’s obvious that truckers are often out of pocket to deliver a load. But what about the delivery that follows next? Truckers need to continue their operations with or without the full payment of their customer. Freight factoring is an efficient method to manage cash flow without having to wait for a customer’s payment. With financial support from freight factoring, operations continue smoothly.
Freight factoring is fast.
The process is quick and hassle-free. Once the application is filed, the request can be approved within twenty-four hours. And in less than a week, drivers will receive the funds they need.
Factoring is not a loan.
Freight factoring companies are not like banks. Factoring doesn’t require interest rates, credit checks, or intrusive questions. The savings over high-fee loans, alone, is worth factoring.
Accounts receivable factoring quickens operations.
After delivering loads to a client, freight drivers and quickly move to the next customer that is waiting for goods. There’s no need delaying the transport due to a money shortage. Factoring keeps you cash-flow ready.
Freight factoring helps review customer credit quality.
Freight factoring not only save shipping and transportation brokers and freight companies money but time, too. Owner-operators are busy and have little time available other than for shipping goods. Freight factoring companies not only keep
drivers financially stable but they also manage invoice payment records.