How Freight Factoring Companies Set Credit Limits

How Freight Factoring Companies Set Credit Limits

Identify any of your customers that are deemed “untouchable”

A factoring company will set credit limits based on the credit worthiness of a client’s customer base. It may seem to be an obvious stage, but ensure the factoring company has completed their due diligence prior to the presentation of a factoring agreement. Only by fully vetting a client’s customer base will a factoring company be able to set credit limits. Once set, have the factoring company detail the credit available by stating the maximum funding available and by identifying any of the customers that are deemed “untouchable” (not credit worthy). Knowing this ahead of time will eliminate any unexpected denial of funding due to credit issues.


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