Factoring is a financial solution based on selling invoices that gives you access to immediate cash flow so you can grow your business. Factoring companies pay you a percentage of the invoice on a load you’ve delivered same or next day.
Factoring is selling invoices to factoring companies for a small fee and immediate payment.Read
Factoring can improve cash flow and save time for both brokers and carriers. Some of the benefits of freight factoring include immediate advances, same-day payments, saved time and overhead costs, and the ability to haul more loads.
Some of the benefits of factoring include same-day payments, low overhead costs, and more.Read
There are two types of factoring you can do. Non-recourse factoring means you are not responsible for a broker not paying on loads you've delivered. Recourse factoring means you are responsible, which means you pay a lower factoring fee. Compare the benefits and pick the right one for your business.
Recourse and non-recourse factoring have their advantages. Pick the right one for yourself.Read
When factoring, you’ll come across many types of fees. Some factoring companies charge lower initial factoring rates but have many hidden fees. Some may even increase their rates over time without telling you. Look out for these eight common and hidden factoring fees.
Don't pay hundreds in hidden fees. Learn about which common hidden fees to look out for.Read
A UCC, also known as uniform commercial code, is a financial document for businesses. When factoring, you list your factoring company as a creditor since you're technically borrowing money them. A UCC will never negatively affect your business and can actually protect you.
A UCC is a financial statement that protects your factoring company and your business.Read
The reserve rate is the percentage of an invoice that the factoring company keeps until a shipper pays. If the factoring company is short-paid, they will take that amount from the reserve. If not, the carrier gets their money back. Reserves are simply insurance for factoring companies.
Reserves are insurance for factoring companies in case a shipper doesn't pay.Read