Have you any idea what a freight factoring is? Or are you just simply looking for an invoice factoring that is allowing companies that does trucking and also includes owner-operators so that the unpaid invoices will turn into an immediate cash. Freight factoring is commonly used by trucking companies because it helps cover the cash flow gaps while the trucking companies are waiting to be paid by their freight brokers and shippers.
Freight factoring is monetizing your outstand invoices and at the same time it is an option that is receiving an account in financing. In freight factoring you will be paid right ahead of time. They will pay you eighty to ninety percent and pays the rest of the balance once it is totally done. Watch this video https://www.youtube.com/watch?v=7LywW6oYszw&vl=en about freight.
Freight factoring is both benefitial to small time owner operators and to larger business of tracking because in the small time they will get paid immediately and in the larger business of tracking, it can fill the flow gawp. Freight factoring can solve the job of carriers that has problems with their cash flows to have payments as soon as possible. A lot of people would wonder why trucking companies would still have freight companies to get involved with their business when they can just wait for how many days for the payment from the shipper or broker. It is because there are a lot of expense that needed to be spent on like the fuel, engine tune-ups, oil changes, tire repairs and other needs of maintenance to do along the way. To avoid facing problems, a trucking company must cover the operations before doing the task, you can also read more here!
You must be careful in choosing a Comfreight that you will have a partnership with. You have to evaluate freight factoring companies very well in order to choose the best one that will fit your trucking business. A lot of people has been claiming that they are in the business of freight factoring but only a few has the expertise in excelling. You do not just have to look for the company that offers the best rates but you must also look for their service.
First thing you must consider is you must know how long have they been in the business. This is a pretty obvious matter you must consider in looking for a company because it is really important to work with companies that has been doing the business for a long time. The freight factoring business is a really competitive business that is why only a few is excelling in this business so the strong ones usually lasts a long time. Next on the list is you must also assure if they are really transportation specialists since a lot of factoring companies are claiming to be transportation specialists but not all companies are really specialists in the industry, they are just claiming to be one. And last but not the least is they must offer a fuel card.