What is Freight Bill Factoring? It is not a loan, but freight factoring is the practice of selling your freight invoices at a discount to another company.

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 What is Freight Bill Factoring?

Simply, Freight Bill Factoring is cash for your trucking company without borrowing.
There are a few ways for businesses like yours to maintain a positive cash flow while growing and dealing with accounts receivable issues. One popular way to accomplish this is called freight bill factoring. Also known as Accounts Receivable Financing or invoice factoring, freight factoring is the practice of selling your accounts receivable (invoices) at a discount to another company. You get the money from the company that you sold your accounts receivable to and they become responsible for collecting on the invoices.

The reason many trucking and freight companies make this move is to ensure the continuous flow of cash to the business. Essentially, businesses who use freight factoring are focusing on having most of the money now rather than all of it later. It can take time to collect on an invoice, so when a company finances its accounts receivable, they are getting their money faster and without the hassle of the collection process.

With small freight businesses, it is even more important to free up working capital through freight factoring. The money can be used for fuel,  invested into new equipment, used to pay bills, or used toward payroll. Of course, the alternative is to chase the customer for the invoice payment and defer everything else while the money is tied up in the collection process.

In order to fully understand freight factoring, you should be familiar with the service: You may consider the following ideas so that you may have a better understanding of factoring. It could be best option for your business.

 How Much Does Freight Factoring Cost?

As we all know, freight factoring is not free, but when used properly, it can more than pay for itself. The idea is to have cash in hand rather than chasing the full amount of the invoice.

Typical fees are a few percent of the invoice amount depending on several factors such as the volume of factored invoices & how long your customers take to pay.  Some of our fees are as low as 1.5%.  Regardless, when you use freight factoring to grow your business, your bottom line should increase because the additional profitable business you are now able to add and should more than offset the factoring costs.

 Freight Factoring FAQ.

Freight Factoring (invoice financing) is widely used by the trucking industry and a viable financing solution for all types of businesses that extend credit terms to their customers. Here are some common questions our customers ask.

TruckingFactor.com provides freight bill and freight broker factoring services, accounts receivable financing, and cash flow services nationwide including Houston, TX; Dallas, Texas; Austin, TX; San Antonio, Texas; Atlanta, GA; Albuquerque, NM; Phoenix, AZ; Nashville, TN; Indianapolis, IN; Oklahoma City, OK
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Freight Bill Factoring is the practice of selling your freight invoices at a discount to another company.