Freight Broker Factoring
Get access to revolving funds when you need it most.
Factoring for Freight Brokers
As a freight broker, it’s a constant balancing act of managing receivables from shippers and payables to transportation companies. A freight broker's responsibility is to arrange transportation companies to ship goods for its clients in exchange for a fee. Freight brokers frequently deal with slow-paying shippers, which causes a cash flow problem when it’s time to pay carriers. Not only is this common, but it can also have a big impact on a freight broker's ability to find carriers for its shippers. If carriers aren’t paid within terms, they often turn to other freight brokers or try to work directly with shippers to avoid slow or potentially nonpayment. In order to avoid this situation, many companies turn to freight broker factoring programs.
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What is Freight Factoring?
Freight factoring, also known as trucking factoring, takes your unpaid invoices in exchange for upfront cash. This means you don’t have to wait 30 to 90 days to receive payment for the work you’ve already done. Lenders often advance up to 90% of the total invoice value, and you’ll receive the remaining balance once your customers pay their dues.
Benefits of Freight Broker Factoring
Advance Rates up to 97%
Factoring companies for freight brokers help accelerate payment on invoices and avoid being caught in potential cashflow gaps. By utilizing different factoring programs freight brokers are able to focus on adding new shippers and carriers to their company. In addition to having money available for growth opportunities, freight broker factoring programs provide ongoing working capital for day-to-day operations. Getting paid up to 97% of every invoice within 24 hours of billing provides a cash cushion that’s normally not there. Some additional benefits to using freight broker factoring are.
- No long term contracts
- Carrier retention
- Improved operating cashflow
- Quick pay solutions for carriers
- Off-balance sheet financing
- Accelerating cashflow by collecting invoice payments on day 1
- Growth capital to secure new contracts
- Simple application process
- No upfront fees
- Advance rates up to 97%
- No minimum volume requirements
Choosing the Freight Broker Factoring Company
Advance Rates up to 97%
Deciding which freight broker factoring company to choose is essential for the ongoing operations of your company. Money is a commodity and is widely available, but that doesn’t mean it’s the right money for your business. Freight brokers are a specialty business that requires a specialty lender. Relationships between carriers and shippers are the most important part of the business and making sure you have the right lender partner is crucial. Choose a freight broker factoring company that will take the time to learn about your company, your carriers, and your shippers. Speak with a freight broker specialist today to learn about the factoring programs we offer.
Ready to apply for a Freight Broker Factoring Financing?