Today Freight Brokers are adapting to industry changes and continue to earn money. However one factor has remained the same for freight brokers, and that is getting a line of credit or business loan. Many smaller sized freight brokerages continue to limit the amount of cash flow and growth they can build.
What do you do to address slow paying customers? A slow paying customer can put a real strain on cash flow. If you put pressure on your customers to pay you early you run the risk of losing business, and in the freight brokerage business drivers need to be paid on time.
Many freight brokerages spend too much time balancing reserve accounts to cover the gap between collecting 30 to 60 day receivables. But mismanagement of the ‘all mighty’ reserve account is a sure way to create stress and poor cash flow.
What we recommend at neebocapital.com is invoice factoring freight bills. By picking this route freight brokerages cover expenses early, pay drivers on-time, offer their buyers 90 day terms, and spend more time focusing on growth. The best part is you can get the cash in less than 24 hours and the fees are typically less than 1.59%.
How does this work? Who are these cash flow providers at neebocapital.com and how do they get freight bills paid so fast?
Good questions, Neebocapital.com acts as an intermediary between freight brokerages and customers. Neebo advances the capital against due invoices. This gives brokerages capital they need on hand to meet obligations, fees are not collected by the factoring company(Neebocapital.com) until after your invoices are paid in full. Freight factoring transactions are safer for freight brokerages because factoring companies may assume the risk on your invoices by advancing you the capital needed.
One of the big advantages of factoring invoices is that it’s easier to get than other forms of financing. To qualify for this solutions, your brokerage must work with shippers that have good commercial credit – this is the most important requirement. Also, your company must have a good track record and be free of liens or judgments. This solution is also available to startup freight brokerages, provided the company owners and operators have industry experience.