Freight Invoice Factoring

Truck or Freight Invoice Factoring

In the past few years, the global economy has been in a downturn. While things are certainly improving, many businesses are still struggling more than they used to. The trucking industry has experienced some challenges due to rising fuel costs and other factors, despite shipping being essential to some many aspects of the economy.


For trucking businesses that are experiencing challenges, freight invoice factoring is a solution that may help them out. Poor cash flow is one of the biggest reasons that trucking businesses fail. Covering the costs of fuel, payroll and repairs can be overwhelming for trucking company owners who have to wait a substantial amount of time before receiving payment on freight invoices. 

Factoring freight invoices improves working capital for trucking companies. By selling your outstanding accounts receivable companies who perform this service, business owners can obtain the cash flow necessary to continue funding their operating costs. By doing so, it can help struggling businesses get back on track and improve their finances.freight invoice factoring

If you’re considering freight invoice factoring as a solution for your business, start by getting in touch with a service provider. Depending on your location, many can be found on the Internet. Their factoring experts will do the necessary research to match your business with the best solution for your funding needs.

Not sure if freight invoice factoring is right for your business? Consider this. It’s a flexible lending solution because business size and credit history don’t impact your ability to factor. Such decisions are based on your clients’ credit and ability to pay their bills, not yours. This will allow your company to have a steady flow of cash at the ready, accept new clients and expand your business without becoming dependent on profits received from invoices.

Some of the most significant benefits of freight invoice factoring are as follows:

    • Freight factoring provides cash to carriers for freight receivable factoring specifically
    • Goods must be delivered with a signed bill of lading attached
    • Small to medium sized freight businesses can secure financing needed for operations and payroll more easily
    • Trucking companies can receive a virtually unlimited credit line without being subject to credit checks or having their financial statements analyzed

Accordingly, a freight invoice factoring system can give your company an edge over your competitors and provide your business with the platform it needs to grow or regain stability!

If money gets tight for your company and you’re tired of chasing outstanding debts and waiting for invoices to be paid, then freight invoice factoring may be the best solution for you. But how do you get the ball rolling? Once you’ve contacted a factoring company, they will walk you through getting set up in just a few simple steps:

  • Complete a freight delivery
  • Forward freight invoices and valid bills of lading to the factoring company you’ve chosen
  • The factoring company will then verify the bills of lading within a few business days and forward you cash based on their value

Shipping is a profession many people take great pride in. They’ve built their businesses through years of hard work and trucking often “runs in the family.” However, the truck and freight business can be spotty due to the fact that it’s especially dependent on the overall consumption of goods and job growth throughout the country.

In the past several years, the industry has fluctuated in accordance with the nation’s employment market. While the shipping of equipment, consumer goods and raw materials has increased, the purchase of luxury goods has dropped, meaning changes in the economy and changes in the way trucking businesses operate. As a result, many business owners have begun taking careful measures to create conservative and secure growth for their companies. Freight invoice factoring is one such measure, and it can mean the difference between struggling and achieving success.