Why Work with a Freight Factoring Company?
Everyday, trucking companies across the USA partner with transportation factoring companies. Freight factoring is a debt-free way to get paid on the same day the load is delivered. Factoring is not a loan. It’s an advance on your outstanding freight bills. If you’re tired of waiting 30, 60 or more days to be paid for your services and could benefit from extra cash, it’s time to consider partnering with a freight factoring company. Factoring can help cover your costs of doing business and ensures your trucks stay on the road where they belong. If you’re not currently factoring loads, we’ve got five solid reasons for you to get started.
1. Slow paying customers
If you’re waiting to get paid for loads you hauled weeks (maybe months?) ago and could use additional cash on hand to take on new loads, freight bill factoring can help.
2. You’ve just started your business or you’re looking to add trucks to your fleet
Transportation factoring is a smart solution for carriers that need a stable source of cash flow to build a successful business and expand without worrying about invoices getting paid.
3. The ability to go after better-paying loads
Get the financial confidence you need to go after more lucrative loads by factoring your freight bills.
4. You don’t want to add to your debt
Maybe you took out a loan to finance a new truck or cover other expenses. Factoring is simply a cash advance on your invoices. Therefore, there’s nothing to pay back.
5. Your credit history is far from perfect
Bad credit or no credit history doesn’t impact your ability to factor. Approval is based on your customers’ credit background, since they are the ones responsible for payment.