Freight bill factoring, fortunately, is one help at hand for motor carriers. You may be a large fleet owner or even a small freight carrier with just a couple of vans; as long as your business is transporting goods, you can take advantage of the advance payment facility offered by freight bill factoring organizations.
How it operates?
First step is to scout around and sign up with a suitable freight bill factoring company. Preferably, select a company that is owned and run by people who are or have been truckers. Experience in the transportation industry makes the outfit to gel with your unique needs better- more about it a little later. Each time you pick up a consignment, get the freight bill counter-signed by the shipper and courier it to your freight bill factoring company. A good factoring company would even provide convenient drop boxes, (where you can 'post' the bill) and subsidize the courier charges.
Once the bill reaches them, the company will credit as much as 90% value, immediately to your account. When the shipper settles the full payment, your freight bill factoring company will release the balance of 10% to you. In this transaction, obviously, both you and the shipper should be on your factor's approved list.
It is better to sign up with a resourceful Freight Bill Factoring company than one that is merely dependable. A good factoring corporation acts as a co-operative. It bargains for bulk discounts on tires, fuel, tools, and repairs from leading vendors; and pass on the cheaper prices to you. It will support you in getting permits from the Transportation department and maintain the licensing formalities. Freight bill factoring organizations network with shippers and inform you on load-availability. One such company says it announces over 40 million approved loads a year; may be with such a business update, you may never have to run empty vehicles at all! If your freight bill factoring company is well known, you can use their payment cards to buy fuel across the country.
You can learn more about other useful services from your Freight bill factoring company