Transportation companies making use of factor invoicingPosted by Sun Middleton on January 25th, 2021 The trucking industry is not for the faint-hearted. It is full of challenges from the everyday low-profit margins to high fuel expenses and expensive truck repairs. When times get tough and finances are low, you need a quick and reliable way to obtain money. The logistics business is known to have some of the slowest paying accounts receivables in any industry. The reason being that logistics services are often paid by a number of contractors depending on the duration of shipping for the product. The multiple levels that are inherent with the way logistics companies do business often lead to extended payment deadlines. This is why so many logistics companies make use of invoice transportation factoring. Factoring is an arrangement where you, the owner, sell the value of your customer invoices to a factoring company. The company pays you most of the total value (usually around 85 - 90%) upfront. In return for the cash advance, the factoring company accepts ownership of the invoices and collecting payments from your customers. Once your customers pay off their invoices, the factoring company will pay over the rest to you, minus their agreed-upon service fee. truck factoringLike it? Share it! |