What Benefits Can A Trucking Company Get In Using Freight Factoring Services ?
When you contract a service to deliver loads of different materials or goods, as a trucking company, you cannot expect a right on cash payment until the goods are delivered to the recipient.
For most, the contract may vary from 30 to 60 days or more, depending on the type and distance of the delivery, but then to wait for this payment will possibly delay the payments for your workers as well, and the tendency to hold other loading requests.
this is the reason as to why the services of freight factoring companies are utilized by most, if not all, trucking companies to ensure continuous cash flow for their services without waiting for the payment from their clients. Freight factoring company offers that trucking company the amount of the freight delivery, minus a small factoring fee, and the factoring company will be the one responsible to collect the payment of the invoice from the customer for the freight service.
Thus, the trucking company is somehow already getting the payment, in essence, of the delivery service they made and can utilize the money to pay what needs to be paid and take on new load or customers to continue the service. Since you already have access to your money, there is no need for you to get a loan from traditional lender or from a bank, retrain your loading service due to financial deficiencies, or worry of cash flow to sustain your trucking business.
Freight factoring is not a loan, instead, you are directly getting the payment of the services you rendered or delivered through them in advance of as much as 90-95% of the total value, which is not worse than waiting to get paid. Applying for a freight factoring does get approved easily as long as all necessary documents are completed, do not need collaterals, and credit history.
It is just a matter of making the right choice of the best freight factoring company that offers the most efficient package that you need in any time necessary.
You can have a lot to choose from that offers the best of all packages, and you may even have some that provide additional privileges and perks that can be most valuable and useful for you.
When you desire continuity of your trucking services and are limited to cash flows, partnering with the reputable freight factoring company either for short or long term cash flow needs, you can be assured of the most efficient and better service towards your clients as well as to your workers.