The Logistics of Factoring Company Freight
Truckload freight and the transportation network are big, multi-billion dollar industries in the United States. But not all freight companies are huge; some are small, and part of the 28 million small businesses in the U.S.
Large or small, the business of carrying and transporting freight requires that shipping managers, distributors and manufacturers all deal with the matter of getting their goods from Point A to Point B, and they need to be able to pay the drivers who help them move the goods– that is, to help accomplish their business objective.
Most importantly, businesses whose objective is moving goods over the transportation network need an efficient system for billing and payment. But this is often easier said than done. Why is that?
It comes down to the concept of cash flow. The results of a U.S. Bank study concluded that payment is made late in almost 60% of all invoices. In addition, cash flow problems are the reason for nearly 82% of all businesses failing to pay their invoices.
So is there a solution? Fortunately, yes. There is an industry in existence to help out with this problem. It is called invoice factoring. Business factoring companies offer, briefly, a service available to the owner of a company. What happens is that ‘factors’, or business factoring services, are able to purchase all the invoices from a company. This is called factoring company freight, in this context.
Factoring company freight gives the owner of the company an instant infusion of funds to insure that business can continue, payroll can be met and the freight gets delivered.
So, if you are a business professional in charge of shipping your product—whether it is global aerospace logistics, pharmaceuticals transportation or industrial machinery parts replenishment, to name a few examples, you are going to want to know about factoring company freight and you are going to want to find the best company for freight bill factoring.
To consider factoring company freight may be advantageous because of the instant capital benefits for the company. The best invoice factoring will lead naturally to the greatest amount of advance business capital, allowing you to keep everything running smoothly.
Finding a factoring company that is transparent, offers great customer service and operates with lots of integrity is key. Also, a major point would be to find a business for factoring company freight that understands the transportation business as well as the freight and trucking industries. With this done, owners will be able to make sure that their business wheels keep on turning.