Posted on 04 Jan, 2017
Categories: Trucking Business
Freight factoring is when a carrier sells the invoice for a load they've hauled in order to get cash immediately, instead of waiting however many days it’ll take for a broker to pay. The factoring company will take a percentage of the invoice as a fee, but factoring is one of the most common ways that trucking companies improve their cash flow, especially new carriers that have recently incurred a ton of startup expenses.
How to Factor a Load
Triumph Business Capital is the top factoring company out there, and they're able to pay trucking companies within 24 hours after a load's been delivered. Loads they factor can also qualify for a fuel advance.
Any load on DAT TruckersEdge that has a green check mark next to it has already been pre-approved for factoring by Triumph, which lets you manage your company's cash flow even easier.
In other words, if you partner up with Triumph, any load you see on the board with that check mark means you can get paid right away.
Triumph offers other back office services for owner-operators, plus fuel advances for a $15 flat fee.
Jason Mullican from Triumph recently paid a visit to the Trucking Podcast to explain the ins and outs of factoring and how it could be a business tool to help grow your company.