What is Freight Factoring? Who can benefit from it? What’s the catch? Can you use it? It might not even be something that you need to worry about. Find out for sure! There is factoring available for freight brokers, in fact, we can help you find the company that is right for you and your business.

1. How does Freight Factoring work?
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2. What is freight factoring?
• Often used synonymously with accounts receivable financing, it is a
form of commercial finance that accelerates cash flow and can be
referred to as off balance sheet financing so not in the form debt or
equity but more obtainable than traditional bank or equity financing.
Confused? Keep reading 

3. Stay with me
Let’s say a carrier has a factoring company, what they’ll do is a move a
load for their customer, either a direct shipper or a brokerage, they will
pick up the load, deliver the load, send their bills to their factoring
company, the factoring company will pay the carrier immediately and
the customer will pay the factoring company within the next 30 day
period. The factoring company will charge a pretty low fee like 1-3%,
it’s usually less expensive than most 24 hour or 7 day quick pay
policies. Generally there are 3 parties involved, there is the seller of the
product or service who originates the invoice, there is the debtor which
is the recipient for the services rendered, and then in between is the
factoring company.

4. LogisticsAcademy.org Freight Broker/Agent
Training
• Learn about the different types of freight factoring in our course!
• Choose a factoring company too
• There is factoring available for Freight Brokerages!