How Submitting Clear Documentation Benefits your Trucking Company
A factoring company that specializes in trucking should be focused on speed of funding to meet the capital expense needs of a fleet operation. However, the client’s ability to quickly create and provide clean and accurate documentation is critical to this process. Difficult to read or inaccurate documentation (bill of lading, rate confirmation, copy of invoice) will impede the timely management of funding. Therefore it is in the best interest of the client and the factor to make sure that all documents are in proper order to expedite funding. Ensure the factoring company chosen to work with has a simple to use electronic document submission platform to simplify this procedure and a dedicated back office committed to expedite the administration.
Some factoring companies actually look for any discrepancies in the documentation to delay the funding process.
One thing to watch out for are tiered factoring contracts where the rate goes up after a set number of days. In these cases, some factoring companies actually look for any discrepancies in the documentation to delay the process. After all, the longer the process takes the later the invoice is paid and therefore the more fees the client pays to the factoring company. Always make sure that a factoring company is honest and willing to work with a client to solve any issues as soon as they arise.
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