What is freight factoring?

If you’re reading this post, you may have a slight idea of freight factoring. We are here to fully explain what this term means as well as some of the benefits that come with it. After a truck driver delivers a load, they are given an invoice which will be paid out in 30, 60, or 90 days. Waiting for one to three months for payment can cause financial difficulties for drivers, which is where freight factoring comes in. Freight factoring is when a factoring companies buy the invoices from the driver and advance most of the invoice amount to the driver. By giving an advance on the invoice, factoring companies provide immediate funding to that driver. Through this process, drivers can pay for business expenses and grow their businesses. Freight factoring is a great tool that drivers can use to help them further their business. If you are looking to learn more about the factoring or signup process, contact us today! Also, don’t forget to keep an eye out for future posts so that you can learn more about the factoring and trucking industry.