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