Also known as load factoring, freight factoring allows you to efficiently manage the cash flow of your freight company. Operating, managing, and growing a business is a lot of work because you have to do many different jobs at once.
That’s why it’s important to learn how to leverage the tools at your disposal! Today, we’ll introduce you to freight factoring so you can start taking advantage of it to save time and energy.
What Is Freight Factoring?
In the trucking industry, your hard work is not paid on the same day it’s completed. Pay periods take from 40 to 90 days or longer in some cases. Considering that you and your business have everyday needs, that can be a problem.
Instead of waiting for the payments and relying on savings, credit cards, or loans to keep you above water, you can use a freight factoring company to collect payments on your behalf. That way, your invoices will get paid as soon as they’re approved.
How Does Freight Factoring Work?
To put it simply, freight factoring is about getting paid sooner rather than later for the service you’ve provided. You simply give the factor with your paperwork to transfer the debt, and they will get paid by brokers within 15 to 30 days. If you work with Purcell Capital Factoring, you’ll enjoy additional benefits.
1-Hour Advances | Open 365 Days a Year
Need funds to get your next load? Purcell Capital specializes in speedy funding. Once you deliver your load, upload your paperwork and get paid in as little as 1 hour*. We are also open for advancing 365 days a year!
The Benefits of Freight Factoring
One of the main benefits of freight factoring is that, in most cases, the invoices you submit will be approved almost immediately, and you’ll receive the funds the same day. This is very important for startups and small businesses that need to maintain an uninterrupted, positive cash flow.
With freight factoring, the receivables on your accounts will be handled by the company you hire, meaning you’ll have more free time to focus on other aspects of your business. You won’t have to keep track of invoices or chase anyone around because the factor will do that for you.
Additionally, freight factoring will determine how reliable brokers are by running credit checks. Overall, freight factoring will relieve you of time-consuming tasks, and it will take a burden off your shoulders. Whether your company is just starting or it’s already established, this tool can be very helpful.
The bottom line is that freight factoring will help you ensure cash flow and make your business operations much more effective. Just make sure you find the right company to work with!