It is important to know about the services that a Freight bill factoring provides. If you are a trucker, then it is imperative to know about such unique services because they will help you and your business tremendously.
The premier factoring services work to buy your unpaid bills and get instant cash in return. Since you get paid upfront that too within the shortest possible time, it makes sense to go for factoring services. The availability of such premium services, can help you to stay ahead of your competition in the industry.
How does invoice factoring operate?
Here is what you need to know to understand how it works:
· A company (or a customer needs the products to be shipped to a location.
· You deliver the same after doing a credit check with the factoring company that the customer is credible to be provided services.
· Then, after the delivery, you send the bill along with the paperwork to the factoring company. The documents can be submitted online or by sending via mail.
· The factoring company buys the invoice and your company gets instant payment.
· The factoring company collects the payment directly from your client.
· As per the situation, there may be additional steps in the process mentioned above. It is best to apply for the factoring services and get instant cash.
The approval of your applications to the freight factoring companies usually takes a few minutes or hours. You can get 90% of the money right away within 24 hours. Sometimes it can be just 1 hour, depending on the factoring company. Some applications allow the factoring company to collect the bills or invoices or receivables instantly while some may take a day.
Here are some more things to know:
· The Freight bill factoring company may use some conditions to measure whether you qualify for the same.
· The more you factor in the amount, the lesser you pay the percentage.
· You need to answer whether you are working with several freight brokers or just one customer. Woking with one debtor is quite risky.
· Factoring companies usually advance around 85% to 95% of the load.
