What To Look For In A Freight Factoring Company Trucking and transportation companies have always faced an uphill battle when it comes to securing funding from major financial institutions. Small and start up companies in the industry often lack the strong credit history or solid collateral to meet the bank’s expectations, and must often look elsewhere for funding solutions. Any expert will tell you that steady contracts and reliable manpower keep as business running at peak capacity, but the actual cash a company has on hand is the true lifeblood of any operation. Trucking and transportation carriers are discovering that invoice factoring is the perfect solution to managing cash flow when traditional lending is not an option. Transportation factoring, also known as freight factoring, involves selling accounts receivable at a discount in exchange for immediate funding, which means that the resources you need to maintain a healthy cash flow can be available often within 24 to 48 hours. Invoices are trucking companies’ most valuable financial asset, and factoring allows you to turn them into an immediate resource rather than waiting 30, 60, or even 90 days to see any value from them. …show more content…
It therefore becomes necessary to find a factor that understands the trucking industry and your relationship with your customers. When making your decision, be sure to consider the advantages of working with the right partner who is up front about the benefits of freight bill factoring they offer, including: • Reputation: Be sure to select a highly reputable factoring company that specializes in the trucking and transportation industries. • Customer Service: Be sure that your factoring company assigns an accounts manager to provide you and your business with top-tier customer