It’s easy for freight brokers to be caught in the middle of slow payment cycles. Carriers need to be paid. Slow-paying shippers can pose challenges when it comes to paying carriers and growing your business. Factoring for freight brokers is the way to combat slow-paying clients and ensure your freight brokerage has the cash necessary for day-to-day operations.
Freight Broker Factoring: How it Works
Factoring allows freight brokers to pay carriers & cover business costs right away – instead of waiting 30-90 days for payment. It’s the process by which a factor purchases your unpaid freight bills and advances up to 98% cash within 24 hours. Factoring companies will collect the payment from your clients on your previously set terms while you conduct business as usual.
- Book a load & dispatch a truck
- Send the invoice to factoring company
- Factoring company will pay you (and your carriers) within 24 hours
Get in touch with us today to get the funding you need to grow your business. Call 216-714-1772.
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Factoring for Freight Brokers: Flexible Programs
Discover custom factoring solutions for freight brokerages of all sizes. No hidden fees, high advance rates and no long term contracts. Getting fast cash has never been easier!
Factoring for Start-Up Freight Brokerages
Whether you’ve just registered up your MC number or you’ve been in business for years, factoring can help you obtain the funding you need.
A factoring program where the freight broker takes on the liability for non-paid invoices. Recourse factoring rates are lower than non-recourse, so this is a great option for larger freight brokerages with enough capital to cover delinquent customers.
The factor takes on the liability for non-paid freight invoices, so freight brokers are not liable if shippers fail to pay. Non-recourse freight broker factoring is best for smaller companies and startups that may not have the cash flow to cover delinquencies.
No Minimum Requirements
Our freight broker factoring services are excellent for startup brokerages because there’s no minimum volume requirement.
Fuel Advances for Carriers
If you’d like the ability to offer fuel advances to your carriers, fuel advance options are available for brokers.
Fuel Cards for Carriers
Load a portion of your advance directly to fuel cards that your drivers can use at thousands of truck stops nationwide. Plus, with 24/7 online access, it’s easy to monitor driver spend and recent transactions. Learn more about fuel card programs.
Flexible Carrier Payment Options
You decide how you want to pay your carriers. The factoring company can take overpayment, or you can continue paying your carriers yourself.
Free Credit Checks
Take the guesswork out of taking on new clients and eliminate the risk of non-payment.
Electronic Batch Submission
Save time and money by submitting freight bill copies via fax or email.
Benefits of Factoring for Freight Brokers
Freight broker factoring is a way for freight brokers to ensure that they will always have enough cash on hand to cover expenses and pay carriers. Rather than stressing over outstanding freight bills, let freight broker factoring companies give you the cash you need when you need it. This way, you can go after new opportunities and develop a successful freight broker business.
Steady cash on hand to pay carriers, accept new clients and grow your freight broker business
Approval is based on the credit history of your customers
Avoid the wait periods and stipulations of other lending institutions
Peace of mind knowing that debts will always be paid
Offer quick pays to carriers
Available funding grows with your freight brokerage