Do you know what a freight factoring is? Or are you just simply looking for an invoice factoring that is allowing companies that does trucking and also includes owner-operators so that the unpaid invoices will turn into an immediate cash. Freight factoring is commonly used by trucking companies because it helps cover the cash flow gaps while the trucking companies are waiting to be paid by their freight brokers and shippers.
Freight factors receives in account in financing and at the same time it monetizes your outstanding invoices. In freight factoring you will be paid right ahead of time. Eighty to ninety percent of the value of your outstanding invoice up front will the factoring company will pay you and they will pay you the remaining balance once you get the job done. Watch this video https://www.youtube.com/watch?v=GpdtMskYQSs about freight.
Comfreight can be really beneficial to small time owner operators for them to get paid immediately to accept additional work and also for large business for trucking in filling a cash in a flow gap. Freight factoring can be really helpful in carriers that has problems with their cash flows to have their payments as soon as possible. A lot of people would wonder why trucking companies would still have freight companies to get involved with their business when they can just wait for how many days for the payment from the shipper or broker. That is because there are other finances that they need to cover like the fuel, engine tune-ups, oil changes, tire repairs and other needs of maintenance to do along the way. Before doing the task, the tracking company must cover the operations to avoid having problems.
You want nothing but the best for your Comfreight company so you have to be careful in choosing a freight factoring company that you will team up with. You have to evaluate freight factoring companies very well in order to choose the best one that will fit your trucking business. A lot of people has been claiming that they are in the business of freight factoring but only a few has the expertise in excelling. You do not just have to look for the company that offers the best rates but you must also look for their service.
First on the list is you must know how long have they been in the business. This is a pretty obvious matter you must consider in looking for a company because it is really important to work with companies that has been doing the business for a long time. The freight factoring business is a really competitive business that is why only a few is excelling in this business so the strong ones usually lasts a long time. Second one is you must also assure if they are really transportation specialists since a lot of factoring companies are claiming to be transportation specialists but not all companies are really specialists in the industry, they are just claiming to be one. Another one is ask if they are offering fuel cards.