Freight Bill Factoring Proved to be Beneficial for

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Freight Bill Factoring Proved to be Beneficial
for the Business Entity?
Freight bill factoring has come forward as one of
the preferred forms of business financing. Money
is that fuel, which ensures that a business
entity can run smoothly without any interruption.
Factoring companies help in to get that money
source within no time. It helps in all the
carriers and brokers to finance their slow-paying
freight bill. How actually do they work is to
provide an immediate cash facility in advance
based on the invoice value held by any
organization? The size of the organization is
never a concern for them. They treat all the
business entities at par. All they do is hold the
invoices which are due for maturity in the future
date and then provide the working capital in
return of the invoices to run the business in a
smooth manner. We all are well aware of the fact
that running a transportation company comes
forward as a very rewarding job in terms of
finance. It can be either a carrier or a freight
broker. However, the operation of the trucking
company is considered to be very challenging. One
of the major reasons behind this is slow-paying
clients. Most of the loaders take up around 30 to
60 days to clear their invoices. They rather work
enough to drain the business owners completely in
financial terms.
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What is Accounts Receivable Factoring
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Factoring Trucking Companies USA

• Now, certain expenses are considered to be
  operational ones such as drivers, fuel, and
  repairs that need to be paid. At the same time,
  there are even a few companies that, due to
  limitations in the financial resources, find it
  difficult to grow their operating
  scale. Factoring trucking companies come forward
  as a helping hand by providing immediate funding
  facility. All the open freight bills are
  collected, and a reasonable sum of money is
  disbursed on the basis of the invoice value. The
  amount disbursed is subject to the deduction of a
  nominal fee called a discount.
• So, now there is no need to ask all your shippers
  for the quick pays. Contact a factoring company
  and get in quick finance access on the basis of
  your invoices.

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Freight Bill Factoring and the Invoice Factoring
Company
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What is Freight Bill Factoring

• If you want to know what exactly is freight bill
  factoring, then let us tell you that it is a
  crucial service, that permits the trucking
  companies to get cash against their unpaid bills.
  When the money is available with the companies,
  they in can pay for raw materials, salaries of
  employees, and many other types of maintenance
  costs. It has become one of the most popular
  funding methods for all types of companies.
• Trucking companies can go for either recourse
  factoring or non-recourse factoring. Most of the
  factoring companies offer both. The Non-recourse
  factoring keeps you protected when the client
  turns out to be insolvent. So, when the clients
  dont pay the factoring company, since you will
  not be held financially responsible, the burden
  does not lie on the company to pay back to the
  factoring company. In this case, the invoice
  factoring company will cover the risk. Since
  there is a risk in this type of factoring, the
  fees in the non-recourse factoring are higher.
• Talking about the recourse factoring, your
  company will be responsible for complete payment
  to the factoring company if the client does not
  pay the invoice. The recourse factoring contract
  charges less fee as you bear all the risk. To
  minimize the risk of non-paying clients, the
  non-recourse factoring is a better option.
• It is easy to take the services of the invoice
  factoring company. You just need to submit a copy
  of your freight bill, also called as BOL or bill
  of lading. You can send the documents by email or
  FAX. Some invoice factoring companies also allow
  the uploading of the documents through a web
  portal. Once you get the same, the factoring
  company verifies the bills and then handles the
  clients to collect the payment. Most of the times
  you will be able to get the money the same day.
  In the case of recourse program, you will get the
  advance within 24 hours from the date of
  submission of the invoice. The remaining payment
  is disbursed when the invoice is paid by the
  client.

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Thank you
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