Freight Bill Factoring For Brokers
Freight brokers face several challenges on a daily basis. One of the several significant challenges is meeting financial deadlines while waiting on the shippers to pay them. Freight bill factoring can meet that daily need for cash by eliminating the 30 to 60 days to get paid. Once you begin factoring your freight bills you get paid the same day the invoice is created. Freight bill factoring for brokers can really boost your cash flow and give you the edge on your competitors.
Once the load has been delivered and verified the money will be deposited into your checking account within 24 hours or less. The main reason so many freight brokering companies choose to use invoice factoring is to increase cash flow, which provides more opportunities for the freight broker to manage expenses and grow the business without adding new debt to your balance sheet. Freight broker factors simply charge a small fee to advance your funds and keep the cash flowing.
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There are several benefits that freight bill factoring companies offer that will allow you to spend more time running your freight brokerage instead of managing the mail box for payments.
1. Pay carriers on time.
2. Offer a quick pay program to carriers to help offset your factoring cost.
3. Fuel cards and Fuel advances
4. Free load credit checks 24 hours per day
5. Latest technology allowing you to upload freight bills for funding via mobile phone or computer
Factoring invoices provides quick cash for freight brokers
Imagine being able to pay carriers quickly and pay other business cost on time without a bunch of stress. If you allow your freight brokerage to work with a factor you can get advances up to 99% of the invoice amount within one day or less. The factor company will do the waiting around while you take care of your freight broker company and increase sales. Take a look at the freight broker factoring process below….
- Confirm the load and dispatch a carrier
- Submit your invoice to the factor company
- Get paid by the factoring company
- Pay your carriers or the factor company can pay your carriers