All You Need To Know About Freight Bill Factoring
If you have started a freight hauling business and have dealt with reputed companies or even with freight brokers on a credit basis, then you would have realized what a financial pain it is to wait for your money to arrive. But if this money was available immediately, then many of your expenses could be taken care of. Well, Freight Bill Factoring promises to do just that.
Freight bill factoring is where you can ’sell’ your credit invoices to factoring companies, who then pay you almost the entire amount of your credit invoice minus their factoring fee, which could be anything from around 1.5% to 4% depending on the credit rating as decided by your factoring company as well as the number of days that you have given to your customers to make the payment. Some freight bill factoring companies pay the entire amount minus the factoring fees immediately while others may retain around 10% of the invoice value until they receive the payment on the due date from your customer.
Some freight bill factoring companies also offer additional services such as taking over the entire collection of your receivables from you against additional charges and this can also free you from the headache of looking after your collections. The biggest advantage of freight bill factoring, however, is that your cash flow improves dramatically as you get almost the entire amount of your invoice within 1 to 2 days. This will provide you with much needed cash to pay off salaries to your drivers and other employees and meet other related expenses such as fuel and repairs and servicing of your trucks. This money will also be useful in case you need to expand your trucking business.
You can contact some of these freight bill factoring companies through references or through advertisements or even through the Internet. Once they have surveyed your clients credit history and your monthly total, they will be able to provide you with a quote. You can then compare different quotes before deciding on the company, which would be most suitable for you. Factor in the quality of their services too matters, before you decide to hand over your receivables to them. They need to be courteous while asking your customers for the payments.
A freight bill factoring company should be able to provide you with timely and quality service and should also be accessible to you and your clients in case of any problems. Some of your clients might also feel uncomfortable while dealing with a third party while making payments, so you will have to handle the situation tactfully while dealing with them. Keep in touch with your clients as well as your factoring company so that everything proceeds smoothly.
A freight bill factoring company can thus take away a lot of your financial problems for a small charge and if your profit margins can handle their factoring fee, then this method of ready finance will not only improve your cash flow but also grow along with your business.
Truckers, are you fed up with high fuel prices?, you can grow your business without a loan. Freight Bill Factoring gives you the cash needed to expand your trucking business. To learn more or get a quick factoring quote visit : http://www.phoenixcapitalgroup.com/quickQuote/index.asp
Print This Article :
