Freight Bill Factoring / Freight Invoice Factoring

Waiting for up to 60 days to have your freight bills and freight invoices paid by your clients can be challenging. If you own a freight brokerage or trucking company, a freight bill factoring company can help you.

 

 

They take on your freight bills and provide you with cash within 24 hours, so you have immediate cash flow from your unpaid freight bills.  

Why use a Freight Bill Factoring Company for your Trucking Factoring needs?

Why wait for 30 to 60 days or even longer for payment on your freight invoice.  The expenses build up as fuel, repairs and driver payments cannot wait. By utilizing freight bill factoring companies, you get paid immediately without having to worry about collections. Removing the unknown of receivables is a major benefit of freight factoring as it creates cash flow that is predictable. You will no longer feel the uncertainty of trying to wait for brokers or customers to pay you. While other types of financing may be available, freight factoring is quite simple to attain and can be processed very quickly.

How Freight Bill Factoring Works

The process of freight bill factoring is simple to set-up and provides the ability to obtain predictable, constant cash. A typical transaction usually resembles this:

The freight load gets delivered to the customer.
The freight bills of lading are sent to the customer, with a copy to the freight factoring company.
You receive the funds from the freight bill factoring company, oftentimes the same day.
The freight factoring company waits to get the funds from the customer, while you use the funds as you need.
After the customer pays the factoring company, the transactions are settled among all parties.

The Cost of Freight Bill Factoring

There are two variables involved in understanding the cost of trucking factoring your freight bill invoices. The first variable relates to the credit worthiness of your freight brokers or clients. The second variable is the volume of your business. Higher volume will usually provide lower factoring charges for you. You can typically expect to see rates for freight factoring ranging between 1.5 to 3.5% per month. Flat rates or full advances requiring no reserve may be available, as well.  Additionally, we use Quick Pay to get you paid right away.