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Category: Small business factoring

FAQ About Freight Factoring Services

When cash flow isn’t consistent; when you have big delays between delivery and payment that leave you hanging, when you’re poised to grow your business and need a bit more cash, or when you have sudden repairs that have to be paid for, freight factoring services can provide a way to get ready cash and keep things moving smoothly. Read on to learn more about how freight factoring services work.

What Is Factoring Financing All About?

All you’re doing when you take advantage of freight factoring services is assigning to a third party—freight brokering companies—your unpaid invoices for deliveries. They immediately pay you just a bit less than you would receive if you were paid by the customer directly. You get the money upon the delivery, and freight factoring services bill the customer.

What Happens if Customers Don’t Pay?

Typically, freight companies can choose whether they want bear the risk of nonpayment themselves or have the freight factoring companies assume the ris

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