Why Work With a Trucking Factoring Company
A trucking company should be utilizing a factoring company’s service due to the carrier’s high costs involved with operating their truck fleet. Payments for services rendered are routinely paid 30 days after delivery leaving the trucking company only rich in receivables until payment is collected. Notorious costs that carriers are burden with are salaries, fuel, insurance, truck payments, maintenance, and breakdowns. Unless a carrier has liquidity, we strongly recommended carriers utilize a factoring company’s service. Factoring allows your company to work with a variety of brokers, and gives you the ability to negotiate freight at true market value while providing credit checks and collections for proper cash flow.
How Does A Trucking Factoring Company Work
A factoring company purchases a carrier’s receivable at discounted rates, usually from 1%-5% (depending on monthly volume of the carrier) of the gross paying load, essentially advancing payment for that load in order for the carrier to continue on with its business activities. Generally, a carrier utilizing a factoring company, should see payment directly deposited into their bank account within hours of delivery depending on the factor.
Benefits of Trucking Factoring- 100% DIGITAL. (Never send originals)
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