Do you still wait up to around 60-90+ days to get paid for your freight bills? Transportation factoring companies can help you acquire your freight bills faster in an efficient manner. They usually finance your freight bills and load your bank within 24 hours. Factoring in transportation provides people owning a trucking company or a freight brokerage with an easier way of getting paid quickly. This helps these owners to finance their businesses without having to wait for around two months.
With a good transportation factoring company, one can plan for the future of his trucking company because he has a predictable cash flow system. The transportation factoring companies eliminate the worries caused by the uncertainty of waiting brokers and customers to pay you after a particular period. Just like other forms of financial factoring, freight factoring is actually easy to acquire and can be set up in a few days.
There are procedures followed in transportation factoring just like any other financial factoring system. First, you must deliver the freight load to your customer. Secondly, you send the freight bill to the customer and submit a copy to a transportation factoring company. The company has to prove that the goods have been delivered to the customer and there is no issue. That is, the customer is completely gratified.
After that, the freight factoring company can then advance the funds. Normally, they advance the money immediately after they confirm the status of the delivery. You don’t have to worry of when the customer will pay, that is up to the factoring company now. However, the transaction is considered fully settled when the customer relays funds to the company.
There are quite a number of freight factoring companies out there with each one promising you quality services. Several factors will help you choose the factoring company that suits your business needs. Licensing, professionalism, experience, procedures followed, the average time you wait before you get the funds, the premium rates among other factors are just a few of the factors you might consider before going for a particular company.