Why Freight Factoring is Essential
Freight factoring is a type of invoice that permits truck companies to convert unpaid invoices into immediate cash. It is worth noting that most truck companies use freight factoring to take care of cash flow gaps while they wait to be paid by the freight brokers. In addition, quick factoring frees trucking businesses from having to make collection calls or track payments, instead, the factoring company collects the payment from the payments from the customers and remits the rest of the invoice to the business after deducting its fee.
The other benefit of freight trucking services is that it allows truck companies to access funds faster and easily. Freight factoring allows truck companies to access funds easily instead of having to apply for loan, the companies can factor a larger amount of invoices in the coming months so that they can increase their cash flow. Moreover, by factoring out their invoices, truck companies are able to get a flexible cash flow limit.
By using freight factoring services, you will be guaranteed of have a quick access to funds since factoring services are accessible for twenty four hours daily. It is critical for truck companies to use freight factoring services since they will be assured that the freight factoring companies will verify their freight bills for all the completed deliveries and then advance them up to ninety five percent of their value within twenty four hours. As far as verifying freight bills is concerned, most factoring companies accept faxed or scanned freight bills thereby saving the truck companies the mailing costs.
Approval of the freight factoring documents is rapid. When a truck company has applied for factoring services, the approval process will take three to five working days. In order for your factoring request to be approved, you will be required to provide a short list of the supporting documents, and once the account is set, you can begin enjoying the factoring services immediately.
The other advantage of freight factoring services is that it enables truck companies to get fuel benefits. Truck companies that had trouble getting loads from their origins to destinations can now get factoring fuels advances and fuel cards. One of the fuel benefits that truck companies are assured of getting from using freight factoring services is that the factoring companies often release smaller percentage of the freight bills to their clients so as to allow them to cover for the fuel costs on the road.
One of the main benefits that truck companies are assured of by using freight factoring services is that there are no hidden costs with freight factoring. Getting access to a freight factoring program is free, in addition all the fees associated with the services are presented up front in the factoring agreement.
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