Benefits of Factoring For Transportation Companies (Brokers & Truckers)

       Finding benefits factoring for a transportation company are very clear. Even though the economic pinch ended over a year ago and the economy is improving, most companies are still reluctant to provide business financing to transportation companies.

If you own a transportation business you can see the benefits of factoring because most transportation companies are cash flow intensive and need external financing to grow.
define-factoring

A major cash flow problem for transportation companies happens because customers typically pay their freight bills on Net 30 or Net 60 day terms.

However, the business needs immediate funds to cover driver payments, fuel, repairs and other business expenses. So the cash flow problem is created by having immediate expenses and delayed revenues. Initially, companies can cover that gap by using their own resources. Eventually these resources will run out, especially if the company is growing rapidly.

A Benefit of factoring to fix this problem is to use freight bill factoring, a form of financing that is designed for this specific cash flow problem. A freight factoring plan helpes the transportation company to get the equivalent of a quick pay. The transaction works by using an intermediary, called a factoring company, who buys the freight bill from the transportation company and pays for it immediately.

This enables the transportation company to get an immediate payment, while the factoring company holds the freight bill until it’s paid. The factoring fee for the service, varies based on how long it takes for the invoice to get paid, the financed volume and your customers commercial credit worthiness.

A major Benefit of factoring over other cash flow strategies is that it’s much easier to obtain than other forms of business financing. Since the factoring company is buying the invoice from your company, the most important requirement to qualify is to have solid customers. Apart from that, your company needs to be free of legal and tax problems.

Visit NeeBo Capital today and get the lowest rates!

Published by

Chris Lanchech

Hi everyone, my name is Chris and I am a junior analyst at Neebo Capital and an inspiring blogger. We enjoy speaking with business owners and entrepreneurs who come to Neebo Capital looking for cash flow solutions. Give us a call toll free at 1-888-382-3766 or Visit us online at www.neebocapital.com

19 thoughts on “Benefits of Factoring For Transportation Companies (Brokers & Truckers)”

  1. Its like you read my mind! You appear to know so much about this, like you wrote the book in it or something.

  2. I have seen that currently, more and more people are now being attracted to cameras and the field of picture taking.

  3. Wow! This can be one particular of the most beneficial blogs We’ve ever arrive across on this subject. Actually Fantastic. I am also a specialist in this topic therefore I can understand your effort.

  4. of course like your web site but you need to test the spelling on several of your posts. Many of them are rife with spelling issues and I in finding it very troublesome to tell the truth then again I will surely come again again.

  5. Magnificent goods from you, man. I have understand your stuff previous to and you are just extremely excellent. I actually like what you’ve acquired here, certainly like what you are stating and the way in which you say it. You make it enjoyable and you still take care of to keep it wise. I can not wait to read much more from you. This is actually a tremendous site.

  6. Hey there I actually arrived onto your site by mistake whenever i was searching Google for this matter, I’ve got to speak about your current web page may be so practical When i furthermore enjoy the develop, it can be brilliant!

  7. Hey there, Thanks a lot for this nice blog post! I will save » Benefits of Factoring For Transportation Companies (Brokers & Truckers) NeeBo Capital Blogs. Thank you.

  8. If individuals could invest in it, such persons for sure should procede that, cause the topic is very nice presentation of it but every normal person would careto it. Because this is so important and is very serious not foronly one person, but actually for the population. Gratitudes!

  9. Generally I don’t learn post on blogs, but I wish to say that this write-up very forced me to try and do so! Your writing style has been amazed me. Thank you, very great article.

  10. hi!,I really like your writing very so much! share we keep in touch more approximately your post on AOL? I require an expert in this area to solve my problem. May be that’s you! Having a look ahead to peer you.

  11. Wow, incredible blog structure! How lengthy have you ever been running a blog for? you made running a blog look easy. The total look of your web site is wonderful, let alone the content material!

  12. There are thousands of companies out there who are willing to pay for your opinions regarding their products.

Leave a Reply

Your email address will not be published. Required fields are marked *