What is Freight Factoring?
Freight Factoring is a very popular method used by trucking companies to convert their receivables into cash. It consists of selling a freight bill or a combination of outstanding invoices to a factoring company. The average trucking company usually waits over 39 days to get paid on a load. Freight factoring allows you to get infuse cash flow to your operations today for a service fee.
With freight factoring, a trucker delivers their hauls as usual, but instead of waiting for payment, they assign or sell the invoice for the job to a third party funding company.