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What Is Freight Factoring?

What Is Freight Factoring?

Freight factoring is a way for trucking companies to receive immediate payment from their customers, instead of waiting 30 to 90 days. By converting freight bills to cash quickly, freight factoring helps transportation companies improve and manage their cash flow.

The way it works is a factoring company pays the freight company for their invoices right away, then, for a fee, collects payment for those freight bills from the trucking company’s customer later.

In order for transportation companies to succeed, they need consistent cash flow for ongoing operations and future growth opportunities. If a freight company chooses to factor, the factoring company (or “factor”) considers their customer’s ability to pay, not theirs. The biggest attraction to freight factoring is not being held captive by slow-paying customers.

If freight factoring is the solution for you, Gulf Coast Business Credit invites you to fill out our online quick quote form today!  Also, GCBC’s current Freight Fast Track promotion is offering transportation companies instant approval, same day funding, waiving of first month's fees, and the lower rates and increased security of factoring with a bank. To qualify for this promotion, transportation prospects must fill out our free quick quote form online and use the promo code “Fast Track” by April 30, 2015. Gulf Coast Business Credit has an entire division devoted to the transportation industry and also offers EFS Fuel Cards and Fuel Discounts at Pilot Flying J Travel Centers.

Looking to learn more about freight factoring or asset based lending? Contact GCBC by phone at 866-577-8867, or email gcbcinfo@gulfbank.com today. GCBC has production offices located in Colorado, Georgia, Louisiana, Oklahoma, Tennessee, and Texas.

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