freight broker factoring - Freight Broker Factoring

Being a successful trucking broker today means maintaining a healthy cash flow. You’ve got carriers who need to be paid promptly and shippers that expect you to wait a minimum of 30 days after you invoice. Many will push you to 60 or even 90-day terms if they can. There’s not a whole lot of margin for error and you’ve got your own business expenses too. The good news is freight broker factoring can help by ensuring you get paid faster without compromising your business relationships.

How it Works: The Factoring Process for Freight Brokers

Virtually every company out there relies on a cash flow solution from time to time. Large trucking brokers can turn to banks and other sources of working capital. The average truck broker is often denied access to the same sources of funds. That might ordinarily put you at a disadvantage, but factoring programs fill the gap, so you always have access to capital as needed.

Freight Broker Factoring is a Five-Step Process

  1. Set up your factoring account. You’ll need to have some basic information about your business and the companies you invoice.
  2. Book and dispatch as you normally would. However, you’ll have the security of knowing you’ll be paid right away for the load.
  3. Invoice your shippers. Your invoicing process can remain the same. You don’t need to change your terms.
  4. Send your unpaid invoices to the factor. In today’s connected world, you can send a digital copy of the invoice and the factoring company will receive it right away. This is your signal to your factoring company that you’d like them to purchase your invoice. You can send one of them or all your invoices. You can also use factoring all the time or just when you foresee a cash flow shortfall. It’s a flexible solution, so it’s up to you.
  5. Get Paid Fast and get your carriers paid fast.  We provide same day funding and as a bonus, you will have the option to use our Carrier Quick Pay Services.  It’s simple… Each time your carriers select quick pay, they get paid on the spot and you increase your bottom line by earning prompt pay discount fees.  

Benefits of Factoring for a Freight Brokerage Company

Now that you’re familiar with the process, you’re probably already catching on to some of the benefits, but it goes much deeper than you’d expect.

Immediate Cash Flow and Access to Working Capital

The biggest reason truck brokers choose factoring is because it provides immediate cash flow. Instead of waiting months to get paid, you can get cash in hand the same day you invoice a shipper.

Approval is Determined by the Credit History of Your Customer

It’s much easier to get approved for freight broker factoring than a traditional loan because the factoring company is more concerned with the history of your customer. You can get approved even if your business doesn’t have credit or hasn’t been around long. You can get approved even if you’ve been denied a bank loan too.

Better Cash Flow Improves Business Growth with Available Funding

When your shippers pay slowly, they don’t just make it difficult to pay your carriers. They make it harder to run your business. You might not be able to give a carrier another load or cover costs like office expenses and marketing. With freight broker factoring, you get paid right away, so you can funnel that cash right into the things that will help your company thrive. Timely payments to your carriers also helps build trust and lasting relationships, ensuring you can continue to count on them to deliver time and time again.

Benefits of Working with Charter Capital

Freight broker factoring can pave the path to success, but it’s essential to choose the right partner. That’s where Charter Capital takes the lead.

  • Same-Day Funding
    Your funds can be wired to you almost immediately if need be. With others, you may have to wait days or more.
  • No Term Contracts
    You have the freedom to choose how long you’re with us. You aren’t required to use our services for any length of time.
  • Low Rates
    While rates vary depending on volume and other factors, we pride ourselves on having some of the lowest rates in the industry. Some of our factoring fees are as low as one percent.
  • Transparency
    Unlike other companies that will quote a rate and then tack on fees after, you’ll always get transparency with us.
  • Dedicated Account Manager
    You will always have one main point of contact—someone you can call as needed for assistance or questions.
  • Free Credit Checks
    Credit checks on your shippers is one of the best ways to reduce delinquency risk. We’re happy to do this at no charge for you.
  • Decades of Experience
    We’ve been supporting the trucking industry for years and understand the challenges you face. Our freight broker factoring services are tailored to meet your unique needs.

Request a No-Obligation Quote

If you want to explore freight broker factoring in depth, connect with Charter Capital. Request a complimentary rate quote to get started.

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