Freight
factoring finds its relevance to maintain a smooth cash flow in the case of the
truckers and trucking companies. It is one of the most popular funding methods
used by trucking companies.
Freight bill
factoring is something of great importance
because it allows the trucking companies to maintain their cash flow or
receiving the cash from the invoices that are still not paid. Having liquid money
in hand helps companies to buy materials, pay salaries to the employees, and
make overhead expenses.
There are two
types of factoring services. One is the recourse factoring services and the other
one is the non-recourse factoring services. In non-recourse factoring, the factoring
contracts become your savior if the customer does not end up paying the bills
to the factoring company, and hence in this case, you will not be held
financially responsible. Non-recourse factoring is more costly for obvious
reasons and is always the preferred choice for the trucking companies as it
does not have any risk. In a recourse factoring, your business is responsible for
making all the payments of the invoices, even if your client does not pay you.
The fee of the recourse factoring is less because it involves the risk.
To get the
services of the freight bill factoring, you need to deliver your load and then submit
a copy of the freight invoice or bill of lading to the freight bill factoring
company. You can email or FAX the BOL. Once the invoice factoring companies receive
the BOL, the factoring company will authenticate the bill, and start to work
for you. You will get your money soon as the factoring company authenticates
that the load was delivered.
Staffing
agency factoring or the payroll factoring is
used by the staffing to convert non-paid bills to working capital. Staffing
companies provide advance up to 90% of the bill amount on an immediate basis.
The staffing agency soon pays the remaining balance too after deducting the fees
when the client pays the complete bill amount.
Staffing
factoring is a great way to convert unpaid invoices to immediate cash. The staffing
factoring company takes up the responsibility of collecting the bills. Payroll
factoring has come as a great help to the agencies to increase and maintain their
cash flow. Staffing factoring can be used by any staffing agency, IT agencies,
Health care firms, Human resources firms, and many more.
Staffing
factoring has become a lifeline for many businesses as it enables them to keep
their expenses going while they can afford to wait for their clients to make payment.
So, in case your
business is having a challenge in carrying out expenses, staffing factoring is
the best option for you.
