Freight Factoring: A Game-Changer for Trucking Businesses
The trucking industry is the backbone of international trade as goods and materials move over long distances. However, cash flow has posed the challenge for most trucking companies. For trucking business firms and their owners, freight factoring turns out to be a lifeline for trucking companies — a financial solution fast turning in vogue to keep their business ahead and thriving. What is Freight Factoring? Freight factoring is one form of finance that allows trucking companies to realize cash flow opportunities and sell the open invoices they earn directly to the third-party business termed as a factoring company. Freight factoring can be construed as the selling of the unsold invoices earned by the trucking company to the factoring firm at a pre-agreed sale price that typically becomes discounted. This means that normally it is around 80% to 90%, and the company issues cash immediately for returns. Freight factoring is very useful to the small and medium trucking ...