• Home
  • Blog
    • Resources
    • Business Partner Magazine Archive
  • About Us
    • Cookie Policy
    • Disclosure Policy
    • Privacy Policy
    • Terms of Website Use
  • Contacts

Business Partner Magazine

Tips and advice for entrepreneurs, start-ups and SMEs

  • Business Success
  • Marketing
  • Finance
  • Employees
  • Technology
  • Start-up
  • Productivity
  • Communication

Freight Brokerage Factoring: The Solution for Slow-Paying Customers

August 1, 2019 by BPM Team

Click here to get this post in PDF

Too long to read? Enter your email to download this post as a PDF. We will also send you our best business tips every 2 weeks in our newsletter. You can unsubscribe anytime.

Enter your NameEnter your Email Address
freight brokerage factoring - port ships cranes freight

Do you know how freight broker factoring can help solve all your cash flow issues? Cash flow is one of the most common problems business owners from all industries face. However, this is especially rampant in freight brokerage firms because clients usually pay within 30, 60, or 90 days. Customers pay on these terms for the benefit of their own cash flow. Freight brokers usually don’t have a choice but to agree or lose business.

As a freight broker, you have transportation carriers dealing with their own cash flow issues and demands. They don’t have the luxury to wait for 30 to 90 days to get paid, so you want to pay them as soon as possible if you want to continue working with them. As the intermediary, you stand in the middle of both parties – customers and carriers – and make sure they’re both satisfied.

This can be tough, considering you also have to deal with cash flow issues of your own. Luckily, freight broker factoring helps freight broker firms bridge cash-flow gap.

Freight Broker Factoring and How it Helps Your Business

If your customers pay on time instead of waiting 30-90 days, transportation companies wouldn’t have issues with cash flow. But as mentioned, it doesn’t work that way. While some companies offer to pay quicker, mostly don’t. This means that you can’t rely on them to fix your cash flow issues. 

Many freight broker companies turn to invoice factoring to fund their business, and here are three reasons why.

1.    Reliable Cash Flow through Factoring

Freight broker factoring is a financing option that enables business owners to sell their slow-paying invoices at a discount. You sell your invoices to a factoring company in exchange for a lump sum (80% to 90% of the total invoice value). Generally, your customers will pay directly to the factoring company. Once your customers pay the full amount of their invoices, the factoring company will then give you the remaining balance minus a small transaction fee.

2.    Flexible Financing

Business owners prefer factoring because of the flexibility of use. The amount of money you can advance depends on your sales volume and the quality of your invoices. This means that as your brokerage grows and your sales increase, your line will conveniently grow with it.

3.    Easy to Qualify For

If you don’t have the business history or credit rating to qualify for traditional loans, freight broker factoring is your best bet. Unlike traditional loans, you don’t need much when applying for factoring. Your business must be working with shippers that have a great credit standing. Additionally, factoring companies also require that your business have a good track record that’s free from judgments to liens. Freight broker factoring is available to all brokerages, regardless of the size of your business.

Apply for Freight Broker Factoring Today!

If you’re looking to apply for freight broker factoring, SMB Compass can help you out. We offer transportation loans, including invoice factoring, to freight brokers all over the country. Schedule an appointment with one of SMB Compass’ financial advisors today! Don’t hesitate to call us at (888) 853-8922 or email us at info@smbcompass.com at no obligation on your part.

You may also like: The Challenges And Opportunities In Container Shipping Market Industry

Filed Under: Finance Tagged With: cash flow, finance, invoice factoring

Comments

  1. Ron Booker says

    August 23, 2019 at 4:47 pm

    I like that you said that factoring, is something business owners use because of its flexibility. My friend told me that keeping a record for every transaction is good to avoid shortages. Thank you for helping me learn more about paying invoices.

Trackbacks

  1. The Ultimate Guide to Getting the Factoring You Need - Business Partner Magazine says:
    November 23, 2019 at 3:14 pm

    […] You may also like: Freight Brokerage Factoring: The Solution for Slow-Paying Customers […]

  • Facebook
  • Instagram
  • Pinterest
  • Twitter
  • YouTube

Disclosure

We earn commissions if you shop through the links on this page.

Recent Posts

  • 6 Top Tips About Business Disputes
  • How to Protect Your Business Against Cybercrime in 2023
  • Benefits and Risks of Using a Real People Finder
  • Interview With Asif Ali Gohar on the Hurdles of Starting a Business So Young
  • Navigating the Complexities of 18-Wheeler Settlements: A Lawyer’s Perspective

Categories

Archives

Digital Marketing Agency

ReachMore Banner

Tags

Accounting apps bitcoin brand business growth business skills business success communication cryptocurrency Customer Service Data design ecommerce Efficiency employees Featured Article finance finances Health and Safety infographic insurance Investing investment legal legal services legal tips Management Marketing marketing strategy Outsourcing productivity property Real estate sales security SEO Social Media software starting a business startup Technology Trading Training website workplace

Disclosure

We earn commissions if you shop through the links on this page.

Digital Marketing Agency

ReachMore Banner

Business Partner Magazine

Business Partner Magazine provides business tips for small business owners (SME). We are your business partner helping you on your road to business success.

Have a look around the site to discover a wealth of business-focused content.

Here’s to your business success!

Copyright © 2023 - Business Partner Magazine·