Freight factoring is a procedure to which truckers could be immediately paid after they have delivered the load they’ve just transported. Regardless if it is a small company or independent truck driver, factoring companies play an integral role in their service collect invoices. It is the factoring company that pays certain portion or full amount of the freight bill but without the upfront fee. There are also cases to which the factoring company holds the remainder in escrow account that couldn’t be touched until the time that the client has the receivable.
With this being said, truckers have the chance of reimbursing the cash they have spent or will be spending on their way back home or on getting a new load. The factoring company is in charge for collecting the bill. Sometimes, it may incur hiring legal help to collect debt or the customer may not pay for months at a time. By employing factoring company to deal with these things, it makes it possible for the independent truckers to get back freely on the road and to proceed with their assignment.
Majority of the trucking load boards are advanced and let you post and even search for loads by using different criteria. Not only that, they provide various services both for the freight brokers and carriers. Well, depending on the board you’re using, you are going to find services similar to load matching, message boards, credit information, days to pay, ability to make notes on carriers and shippers, finance of pre-approved loads by using factoring and mobile access.
Freight board market is quite competitive and you are going to find numerous providers that are both paid and free. If you chose to go for paid service, you’ll see that the prices are varying based on the plan you’ve selected. As for the cost of premium boards, it could actually reach to around 100 dollars, a month. Of course like any other service and products, there are advantages and disadvantages of opting to work with freight boards. On the other hand, it helps freight brokers and new owner operators to get a jumpstart of their business. But owing to fierce market competition, it sometimes causes others to breakeven or take home slim margin.
There are numerous load boards that are integrating work with companies that are offering freight bill factoring. With this integration, it permits clients to finance slow paying freight bills and could be useful if you’re only starting up or perhaps, running low on funding. Some factors are even offering fuel advances which is providing funding for fuel and several other expenses the moment you pick up your load.