Freight Factoring: A Game-Changer for Trucking Businesses

Freight factoring is one form of finance that allows trucking companies to realize cash flow opportunities and sell the open invoices they earn directly to the third-party business termed as a factoring company. Freight factoring can be explained as the selling of the unsold invoices earned by the trucking company to the factoring firm at a pre-agreed sale price that typically becomes discounted. This means that normally it is around 80% to 90%, and the company issues cash immediately for returns. Choosing a reliable factoring company with competitive rates and industry expertise is crucial. This financing method helps trucking businesses sustain growth and navigate industry challenges effectively.