In short, freight bill factoring is a type of financing that assists the truck operating companies, freight carriers and brokerages. Such cash advances eliminate the cash flow problems because shippers and clients are paying their freight bills after a credit period of around thirty days and above as agreed earlier.  The aspect of factoring of freight bills resolves their cash flow problems by providing the funds to the truck operators who you need to continue the trucking operations without any hassles in their cash flow. In order to enlighten more on global factoring, readers can simply log on to the World Wide Web to find more details. Most of the trucking companies get into cash flow ‘paralysis due to one simple reason – their customers, to whom they serve may not offer quick payments.  These operators need to wait up to 60 days to get their payment. However, they cannot stop their operations and hence they need to keep the business running. Also, they need to pay for fuel, for repairs and drivers salaries etc. Not all the trucking companies have enough money in their bank to run the daily operations. Such a situation results in frustration, less job satisfaction and other emotional issues for the truck operators. This unique hardship generally hits small and start-up transport companies at the hardest level.

The right solution for you!

With a simple act you, as a small truck operator can solve this problem. All you have to do is   to finance your transportation freight bills. A factoring company comes for your rescue in these hard times. Instead of waiting up to the credit period of 60 days for payment, a truck or a general factoring company can advance a large portion of the money that is owed to you quickly.  Such quick payment makes you to take care of your immediate business expenses. The entire transaction concludes when your client or shipper pay the bill directly to the factoring company within the agreed time. This rewarding solution protects your trucking career on a solid footing by offering a predictable cash flow to move forward in your business. The factoring company buys your invoice for a single payment, which varies between ninety to ninety five percent of your shipper’s invoice. This service charges a flat fee, which is generally adjusted while disbursing the cash. Qualifying for the freight bill factoring is relatively simple in the present days. All you need to possess a motor carrier authorization and proper and valid insurance.

Comments are closed.

  • Partner links