All you need to understand and know about freight broker factoring

Trucking businesses are always packed with excitement as well as a typical concern whether everything will work fine or not. If this is so, then are you aware of freight broker factoring? If not, then don’t get bothered because it is same for most of the people. No college or business school teaches about freight factoring, but it can be a blessing to your business.

Why do you need freight broker factoring?

The first thing is that, when you do a transaction with a client, the client has a time span of 90 days to pay. This is a point of relaxation and payment flexibility for the clients, but what if you need the payment before 90 days? It is then that freight factoring works the best. They will give you the money against the bill or invoice and later when you get it back from the client after 90 days; you can pay back to the factoring company. Sounds interesting, right?

Now you can keep your trucks for more time on the road and wait lesser time for the invoice to be paid!

So, if you are planning to take help from freight companies, here are some questions that might come up. Read about them below.

6 questions that you need to clarify about freight broker factoring

1. How much time will they take to pay?

Timing in the truck freight industry is crucial. It is very important that you are conveniently able to get the shipment and delivery on time. So, these companies will pay you within hours (maximum 24 hours) if you have all the documents cleared and the invoice is with you.

2. How much does the brokerage usually cost?

The brokerage ranges from 1.5% to 3.5% of the invoice. Depending on the quality of payment and transaction, certain companies provide invoice discounting. These are the best things that can happen and will help to set up your cash flow in the business.

3. Do these companies provide fuel cards?

Yes, absolutely! These companies provide fuel card which you can use for refilling your trucks. You will also get good discounts and rebates on fuel.

4. Are these contractual?

Depends on what kind of freight factoring you are looking for your company. You can go for long term contract service or can also go for short term service; anything that is convenient for you.

5. What are the things you should look for in the company?

North America is a hub of freight trucking, so it is very important that you choose something which is important. Here are few details about the service that you need to keep in mind for a proper working –

• They should provide an account manager
• Check on the brokerage rate and compare it with the market rate.
• Do they have customer service or not.
• Are they offering free credit and collection or not

How many invoices do they have to factor?

There is no limit; you can factor as many invoices of the customer you want.

So, if you are now certain about what to do and how to do, then contact the best freight factoring company and avail some great invoice discounting facility in North America. Run your business smoothly!