How Can Freight Factoring Boost Your Transportation Company’s Efficiency?


We all know that, between rate confirmations, BOLs, lumpers, detention, and other logistical concerns, transportation companies have many balls to juggle (or, more accurately, paperwork to fill out). Of everything you’re managing, keeping track of freight invoices is probably the trickiest and most time-consuming of all. 


If you’ve ever dealt with late invoice payments, you know the struggle. When a long-haul carrier accepts a load, they will invoice a freight broker to ship goods. Often, it can take several weeks or months for the freight broker to pay the invoice. Late invoice payments create anxiety surrounding cash flow and occupy your time that could be better spent running your business.


That’s where freight factoring comes in to save the day. But what is freight factoring, and how can it boost the efficiency of your transportation company? Whether you’re intimately familiar with this process or have never heard of it before, keep reading to learn the multiple ways freight factoring can take your business’s efficiency to the next level.

It’s easy and efficient to get started with freight factoring.

If your transportation company has had a dilemma that has or could cause cash flow problems, freight factoring is a great way to secure a burst of income in as little as one to two days. Getting approved for freight factoring is a quick process, usually completed in two to three business days. 


Freight factoring is also an excellent solution for trucking companies that are just starting out and have bad or no credit history. 

Freight factoring can increase your company’s cash flow.

If you’re not sure how factoring works, don’t worry. We are happy to explain it to you. Freight factors send companies an advance worth around 85% of the unpaid client invoice. The freight company then does its best to reach out to the customer to get the invoice paid ASAP. 


Once the client pays the invoice, the freight factoring company will return the rest of the unpaid invoice minus a small cut, their fee. As you can see, you won’t need to be involved in this part of the process, so it will allow you to focus on the things that matter most—finding new clients and increasing cash flow!

Freight factoring will save you valuable time and energy.

As you read above, freight factoring is an excellent way to save your company valuable time and energy so that you are free to boost your company’s revenue! Yet, freight factoring is even more than just a time, energy, and money-saver. When you hire a freight factoring company, you’re hiring a team dedicated to supporting your business’s growth on the backend. 


However, you should know that not all freight factoring companies are created equal. To find the best trucking factoring company for your business, reach out to the pros at Top 5 Factoring.

Let us help you find the best factoring company for your freight business!

If you want to give your trucking company a boost, get started with freight factoring today! Head over to our ratings so you can see the best freight factoring companies for trucking businesses you should consider signing a contract with. If you have further questions about freight factoring rates or the best factoring company for you, contact us today, and we’ll assist you!