Freight Factoring: Cash Advance Options

Freight Factoring: Cash Advance Options

Advanced Funding Before You Deliver Your Load

Freight factoring provides access to immediate cash once a load has been delivered. However, many trucking companies experience a cash shortage and require funding before delivering a load to cover over the road expenses. A cash advance option from your factoring company serves this purpose.

Look for: Freight Factoring companies that provide Cash Advance options on loads in transit.

Here’s how it works; once the driver has picked up the load, forward the load confirmation to the factoring company. A percentage of the value of the load (up to 50%) is funded the same day.

 

an illustration showing how a freight factoring cash advance works


Figure 7-2: Advance Funding for Over-the-Road Expenses


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