What is Freight Factoring?
After all the start-up costs to get your trucking business up and running, it’s time to start making some money. The problem is that there’s usually a waiting period between when you submit the invoice for a load you’ve hauled and when you get paid. Freight factoring is one way to get paid right away without having to deal with that waiting period.
This is especially helpful for new trucking businesses. Basically, you sell the invoice to a factoring company for slightly less than the full cost. Companies like Triumph Business Capital will pay you the same day, so that you can avoid taking on any new debt for the business. This also gives your business cash on hand in case of any maintenance emergencies.