Slow payment cycles are typical when it comes to freight brokering. With average payment terms of Net 30 to Net 90, shippers may not pay their invoices for weeks or even months. Dependable cash flow is essential to pay your employees, cover your overhead, and grow your business. Invoice Factoring is one of the most effective ways to provide Freight Brokerages with ongoing funds every month without cutting short the benefit of lengthy payment terms for your clients.
Invoice Factoring, which is a type of Accounts Receivable Financing, guarantees you the finances you need to run your business. We buy your accounts receivable invoices and pay a substantial upfront cash advance within 24 hours. You’ll get paid the rest when your clients pay in full. This is an excellent financing solution for small operations as well as large freight brokerage firms who need to boost their revenue without a bank loan.
Factoring for Freight Brokers is easy. You can apply for free and get approved by the end of the week. We deliver large cash advances within one business day, deposited directly into your business account. We’ll hold a small percentage of the total outstanding amount until your clients have paid their invoices in full. Upon final payment, you’ll get the remainder of the receivables minus our fee.
Submitting invoices each month is simple:
There is no monthly minimum amount you have to submit and a $10 million maximum. Factoring is designed to grow with your business. The more you make, the more you can factor.
We’ll purchase your invoices for a high cash advance within 24 hours. Our goal is to give you immediate access to your funds.
Sell My Invoice becomes part of your company's accounts receivable department. We will manage bill collections and payment processing so you don’t have to.
Factoring is not a loan, so it comes with none of the downsides of a loan and all of the advantages. For example, bank loans require a freight broker to have an ideal credit situation and be in business for several years before approving you. Invoice Factoring, however, requires no credit. We have even worked with companies who have filed for bankruptcy. That’s because we determine eligibility based on your clients’ creditworthiness, not yours. Another advantage is that factoring is not debt. It’s a cash advance for loads your carriers have already delivered and you’ve already invoiced for.
Here are more of the many advantages you have access to through Factoring: