What is the difference between invoice factoring and freight factoring?

If you haven’t read about what invoice factoring is and some of its benefits, read our other blog posts first. Our previous article introduced freight factoring. However, today, we will clarify the difference between invoice factoring and freight factoring. The major distinction between the two is that freight factoring is a type of invoice factoring. In most big businesses which involve the selling of goods or services, some invoices are given as proof of sale. Depending on the business, some invoices can be paid out instantly. Others could take months to get paid out. In the trucking industry, these invoices are given after a freight carrier delivers their load. When that carrier decides to use a factoring company (factor) to advance that load, it is now considered freight factoring. When talking to others in the trucking industry, invoice factoring and freight factoring are seen as the same thing. However, when talking to others outside of the trucking industry, the meaning of these terms is not the same. We hope this post helps highlight the differences between invoice factoring and freight factoring. If you are looking to learn more about the factoring or signup process, contact us today! Also, keep an eye out for future posts so that you can learn more about the factoring and trucking industry.