There are many advantages of seeking the services of trucking factor company. here we will talk about it.
Better than traditional loan
Factoring is sometimes confused with a bank business loan, but you must know that these two are separate things. Factoring is a better option as compared to the traditional loans offered by the banks and third party. Factoring is not a loan because it has no debt. In the traditional loan, you have to repay the amount by paying both the principal and interest. In factoring, the credit score has no relevance and you easily get the amount from the factor trucking company.
The invoice factoring company furnishes loan by evaluating simple factors such as the credit strength of the clients, but in the case of traditional loan, the bank reviews the financial status of the company, assets and liabilities, credit history, and many more things.
Enhances cash flow
This is the real essence of freight bill factoring. It is a great solution for the companies who want to solve their cash flow problems. Many companies have slow-paying shippers, due to which they face financial crunch. Factoring company offers instant money.
So, when you need funds sooner to pay for business operations, you can take the help of trucking factoring company.
Fuel advances are also included
Many factoring companies offer their clients fuel advances. This is little difference from the regular factoring. But your company can get these advances, before you deliver products.
Many factoring companies provide a fuel advance of more than 40% of the total bill amount. You can use the advance for fuel costs, repairs, and any other type of business expense. Every factor company has its own policies and rulebook.
Fuel advances work well for newer carriers who have less funds. It also works well for the carriers that are still growing and have depleting cash reserves.
Many factors trucking Ohio provides additional services too such as custom-made load boards. These are designed to provide the clients with loads. Sometimes the clients qualify for a dispatch service, saving a lot of time and efforts of the clients. Load boards are a great advantage to new carriers.
Most of the factoring trucking companies also have partnerships with equipment finance companies. So, when you have to do an equipment purchases, you can get financing and that too at competitive rates.
Some factoring company also provides insurance assistance to their clients.
It is easier to get money from factoring trucking company as compared to other options. Getting a factoring amount is easy because most of the companies that apply for factoring, have a good chance of getting the amount.
Also, most of the factor company provides approved amount within a day of receiving the bills.
Read for more info: factoringfast.com