What is Freight Bill Factoring?

Freight factoring is when a transportation company enters a deal with a third party that buys their invoices off them, paying them about 90% up front and the remainder (minus their 2-3% fee) when they get paid.

The adage "time is money" is even more true in logistics and this lets the shipping company receive 90% of their revenue right away, instead of NET 30 or more.

Freight factoring provides fast cash to carriers. Small and medium-sized freight companies can easily secure financing needed for fuel, repairs, operations, and payroll.

Freight bill factoring is a form of business financing. It enables carriers and brokers to finance slow-paying freight bills. Freight factoring is an easy way to manage cash flow for your trucking company.