Freight factoring is a procedure to which truckers could be immediately paid after they have delivered the load they’ve just transported. Either independent truck drivers or even small companies, they hire factoring companies in order to manage the collection on invoices. It is actually the factoring company that is paying percentage or at times, full amount of the freight bill but the difference here is, there’s no upfront fees. There are times that the factoring company holds the remainder in the escrow account which could not be touched until the client got the receivable.
As a result, this gives truckers the fund they need for shouldering the expenses incurred or will incurred on getting another load or on their way home. 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.
Most of the trucking load boards are so advanced and make it possible to post or even search for loads using filters. And regardless if you are a freight broker or carrier, you are going to find services that suit for you. Regardless of the board you use, rest assure to find a number of different services such as load matching, credit information, message boards, days to pay, make notes on the carriers and shippers and a lot more.
Freight board market is so competitive and there are many providers of both paid and free that you can find. 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. It allows clients to finance slow paying freight bill and at the same time, be useful for startups or those who run low on funds. Some factors also offer fuel advances which provides fund for fuel and various other expenses after picking up the load.