Being a carrier, particularly as an entrepreneur, can provide a great lot of flexibility. However, one disadvantage of being an owner-operator is not getting paid on time. You might get paid after delivery if you’re lucky. However, depending on the shipper’s net payment requirements, you may have to wait for your money. You could have to wait 60 days (or longer!) to get paid for the stuff you hauled.
Trucking factoring can save you time and money by avoiding late and sluggish payments.
What precisely is factoring in trucking? Truck factoring is a commercial factoring service that allows you to get paid within days (often hours) of completing a project, rather than the usual 4-6 weeks. Factoring is when you sell your job’s invoices to a third-party financial entity called a factor. You get your money back minus a factoring fee. The broker pays the factoring firm, and the factoring company pays the broker.
Trucking invoice factoring could be a good alternative commercial factoring service if you’re short on cash and need to pay bills or expand your business. If your truck factoring application is approved, you might get payment for factored freight invoices in as soon as 24 hours.