As trucking professionals know, the freight industry depends upon continuous, reliable cash flow to keep goods moving and our economy growing. The trucking business can be a challenging field financially, as fuel, payroll and equipment costs rarely synchronize with shippers’ payment terms. Owner-operators and trucking companies need to be able to keep up with fuel and maintenance bills and drivers need to be paid, but if shippers and freight brokers don’t pay until 30, 45, or even 60 days after a load is delivered, motor carriers face a critical cash flow crunch. Freight bill factoring bridges that gap between delivering a load and getting paid for it.
What is freight bill factoring?
Freight bill factoring is a tried-and-true cash flow solution that advances motor carriers and freight brokers the funds they earn on loads, without waiting for customers to pay. Freight bill factoring is the funding source of choice for millions of trucking professionals.
How does freight bill factoring work?
When a motor carrier or a freight broker signs up with a factoring company specializing in freight factoring, they submit their invoices to the factoring company and get paid right away. Arrangements differ among factoring companies and their programs. As soon as a verified invoice is received, the factoring company may pay all or part of the value of the invoice when a load is picked up. Sometimes they may pay a fuel advance upfront or they may pay part of the invoice value on pick up with the rest following receipt of the completed bill of lading after delivery. In exchange for getting paid upfront, rather than waiting for customers to pay, the factoring company’s clients pay a small cost, based on a percentage the total value of the freight bill submitted.
Why do people use freight bill factoring?
Freight bill factoring is by far the most popular funding choice for those in the freight industry, whether they are a freight broker or a motor carrier. Freight brokers like the simplicity of their factoring companies paying motor carriers directly with the factoring company’s own money, not theirs. They like the separation of sales and collections with their customers: their factoring company handles collections, saving the broker time and resources and allowing them to focus on sales and grow the business.
Factoring also suits the motor carrier’s business model on all levels. The factoring company advances they money they’ve earned without delay. A leading factoring company can wire the funds within a few hours after receiving a verified invoice or can deposit the funds to the motor carrier’s bank account on the same day or within 24 hours. Freight bill factoring is a fast, affordable, and debt-free cash flow solution for motor carriers. Because factoring represents an advance on completed work and not a loan, the factoring client does not take on additional debt.
Why do people use FreeFreightSearch.com for their freight bill factoring?
FreeFreightSearch.com, the world’s largest free load board, is more than a freight-matching site. Thanks to a completely integrated freight bill factoring program, FreeFreightSearch.com is also a one-stop shop for fuel advances and quick pay. Freight brokers who factor with Interstate Capital, one of North America’s top freight bill factoring companies, are given favored status with their loads listed first and marked with a quick pay guarantee. Motor carriers can request fuel advances and quick pay easily and directly from the FreeFreightSearch site.
If you haven’t signed up on FreeFreightSearch.com, now is the time. Give your business a competitive edge with FreeFreightSearch. Registering takes a moment and is always free: click here to join.