Since truckers frequently need one invoice paid to cover their next job or for expensive fuel advances, factoring is popular in the freight industry. They pay you within one business day and then collect from the client. Freight Trucking FactoringĪ freight factoring company works the same way but simplifies the process for truckers.Īs soon as you get your invoice, you submit it to the factoring company. The first is about 60-70% of the total invoice amount.Īfter the factor collects from the other party directly, they in turn pay the business owner the second installment (the rest of the amount due minus the factor’s fees and expenses). The factoring company (or factor) pays the business owner in two installments. Instead of waiting for a customer to pay their outstanding invoice, the business owner can sell it to a third-party factoring company. Invoice factoring is a method of funding many businesses use to get quick cash without taking out a loan. We’ll discuss different types of factoring: This article explains all the details so you can make informed decisions to get you through your next cash crunch. What’s invoice factoring in trucking, and how can it work for you?Īre there similar alternatives and how do you choose? You can use trucking invoice factoring to get the working capital you need - fast. You might not realize it, but you don’t have to sit on that ever-growing accounts receivable and wait. While you’re waiting for the next cargo ship to unload or a shipment to pass through the evolving COVID approval process, your invoices are piling up. We’ve seen this a lot recently, with the supply chain problems happening globally.

A hiccup or wrench in a supply chain can be painful to a small business’s cash flow.

Freight invoice factoring