Freight bill factoring and staffing agency factoring

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.