Cash flow is a concern for most businesses in today’s economy, and freight brokerage and transportation companies are no exception. If you are in the transportation business and have trouble waiting up to 60 days for payment on your freight bills, a transportation factoring specialist may be a good fit for you.

This service, also known as trucking factoring, freight factoring, freight bill factoring, or load factoring, is commonly available throughout both the USA and Canada, and can provide cash for truckers via Quick Pay in as little as 24 hours.

Why Use a Transportation Factoring Company?

Many transportation companies find it challenging to wait 30 to 60 days for payment of a freight bill. Drivers need to be paid, and repairs and fuel purchases cannot be put off for long. One option that can provide significant help for transportation companies is factoring your freight and transportation bills. This allows you to receive cash quickly, providing capital to keep your bills paid and business running. While there are often a number of options available for obtaining operating capital the benefit of factoring, however, is that you acquire needed cash without incurring debt. Transportation factoring / trucking factoring is also generally easy to obtain and getting started with G Squared Funding is a fast and easy process.

Getting Started with Transportation Factoring

Beginning the process of transportation factoring is simple, and provides you with access to a predictable and ongoing source of cash with just a few basic steps:

• Provide the transportation services to your customer.

• Forward the freight bill to both the customer and your transportation / freight factoring company.

• You receive the cash funds from the transportation factoring company, usually within a day or sometimes the same day with Quick Pay.

• You utilize the cash to keep your business running as you need, while the factoring company works to get paid by the client.

• When the client pays the freight factoring company, all transactions are settled.

 

The Costs of Transportation Factoring

Transportation factoring costs are usually calculated off of two variables. First, a freight factoring company will evaluate the creditworthiness of your transportation clients. Next, the volume of your business is reviewed, and your cost will usually go down as your volume goes up. You should anticipate rates between 1.5 to 3.5% per month for a transportation factoring contract. Depending on the factoring company and your business, you may also be able to negotiate full advances without fees or a flat rate for your contract, as well. Transcore Freight Solutions