It is a powerful tool that is used in companies dealing with freight transportation. Furthermore, it is a process that is used for a cash advance in a short time.
However, in order to get cash quickly in the trucking industry, there is a certain process to get through:
- Once you receive the client’s order you send details about the customers (the transaction, the load and the rate charged)
- The freight bill factoring companies then notify you whether the customer is approved for the freight factoring. (checking the credit and making sure if the pay will be made timely)
- You continue with the transaction and doing your part of the service
- Once you are done with the trucking service, you provide invoices regarding the freight to the factoring firm.
- Depending on the factoring company, you get a certain amount of the invoice you sold.
- Once the customer pays fully the price, you receive balance
