What Is Freight Factoring?
It Helps Achieve Positive Cash Flow
Article / What is Freight Factoring?
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What is Freight Factoring?
What is freight factoring? Freight factoring involves selling freight bills or accounts receivables to a factoring company to maintain cash flow despite unpaid invoices. This funding option is crucial for trucking and transportation companies, especially when they invoice customers on credit terms ranging from 30 to 90 days.
It eliminates the concerns of negative cash flow due to outstanding and unpaid invoices and freight bills.
Granting Credit to Your Customers?
The trucking industry is in a new environment where granting credit to customers has become part of doing business, but how can a carrier operate if they have to wait up to 90 days for payment?
The Solution ...
The solution lies in freight factoring, a crucial funding facility that enables carriers to maintain their competitiveness by continuing to extend credit to their customers without the risk of cash flow shortages.
By leveraging freight factoring, carriers can focus on expanding their business rather than worrying about customer payments.