A procedure to which truckers can use to be paid ASAP once they have delivered a load they have transported is called freight factoring. Either independent truck drivers or small companies are hiring factoring companies to handle collection on invoices. The factoring company will pay a certain portion or even the full amount of freight bill minus the upfront fees. There are also cases to which the factoring company holds the remainder in escrow account that couldn’t be touched until the time that the client has the receivable.
This as a result is giving truckers the cash needed for expenses he incurred or will incur on their way home or to get another load. Factoring company is the one in charge as well to collect the bill. It may sometimes incur employing legal help for collecting on debt or the customer might not pay for months at a time. Hiring a factoring company to take care on all this allows independent truckers to freely get back on road and carry on with their assignments.
Because of the reason that trucking loads are so in demand, it is possible to use filters to search for what you want specifically. In addition to that, they are providing different services both for carriers and freight brokers. Well, depending on the board you’re using, you are going to find services similar to load matching, message boards, credit information, days to pay, ability to make notes on carriers and shippers, finance of pre-approved loads by using factoring and mobile access.
Freight board market is quite competitive and you are going to find numerous providers that are both paid and free. Now assuming that you have opted for paid service, then you will notice that the prices vary based on the plan you have chosen. Prices for premium boards can reach to around 100 dollars per month. Working with a freight board does come with its own benefits and drawbacks of course. This on the other hand is a big help for freight brokers as well as new owner operators in jumping start their business. But owing to fierce market competition, it sometimes causes others to breakeven or take home slim margin.
There are plenty of load boards that integrate work with businesses that do offer freight bill factoring. For those who are running low on fumes or start up, the integration of such features allows clients to finance a slow paying of freight bills. Some factors are even offering fuel advances which is providing funding for fuel and several other expenses the moment you pick up your load.