For larger trucking outfits, a freight factoring service can essentially act as their accounts receivable or frees up cash on outstanding invoices. This allows you to expand quickly, and grow as a business. For smaller operations, a service like this helps you get paid immediately, allowing you to take on more work. With freight factoring, you’ll be able to cover operational costs and help your trucking business grow faster.Īll trucking companies can benefit from using a freight factoring service. Whether you’re an independent owner-operator or manage a smaller fleet, you can get more capital to keep your rig rolling.
Freight invoice factoring drivers#
A percentage of the invoice is taken as a fee, but you still get the cash you need when you need it the most.įreight factoring is great for truck drivers and companies alike. Rather than waiting 30-90 days to get paid on your invoice, the factoring company pays you immediately for the work you’ve already done. Freight factoring is the process of selling your existing invoices to a third-party, like Financial Carrier Services.
Freight factoring is an easy way to address your cash flow issues quickly. In some cases, clients have up to 90 days to pay their invoice which can leave truckers feeling strapped for cash.ĭon’t feel panicked about how you’ll pay for your drivers, fuel, tires, and repairs. The source of these cash flow issues largely stems from the invoicing system that many businesses use to request money from their clients.
When cash is tight, running another load of freight can be nerve-wracking. Nearly every trucking company out on the road today has experienced cash flow issues of one kind or another. No matter what you call it, the end result is still the same - you get paid for your work sooner. When you’re first researching freight factoring, you might find it under numerous names, including transportation factoring, trucking factoring, or invoice factoring.