Factoring service
Running a trucking business requires managing cash flow, especially when unpaid invoices hold up your funds. Factoring services help truckers and companies convert unpaid invoices into immediate cash, easing financial strain and ensuring smooth operations. With our professional factoring partners, Logity Dispatch ensures that you get the best deals, keeping your business moving forward.
What is Freight Factoring?
Freight factoring allows trucking companies to sell their outstanding invoices to a third-party factoring company in exchange for immediate cash, usually 80% to 90% of the invoice value. The factoring company then collects payments from clients on your behalf.
Why Choose Freight Factoring?
Swift Cash Flow
Receive quick payments for your services without waiting for clients to settle invoices.
Reliable Revenue
Enjoy a consistent cash flow by factoring your invoices, ensuring your business can grow without financial uncertainty.
Flexibility
Factoring provides the flexibility to take on more jobs and manage business operations efficiently.
How Factoring Benefits Your Trucking Business
- Fast Access to Capital: Instead of waiting for invoices to be paid, you get most of the funds upfront, allowing you to cover expenses, payroll, and investments promptly.
- Eliminates Payment Delays: Factor your invoices and stop worrying about overdue payments. A factoring service ensures you don’t bear the risk of non-payment.
- Increased Flexibility: The ability to take on more contracts and manage your income stream gives your business greater stability and control.
- Improved Cash Flow for Growth: With factoring services, you can secure loans, attract investors, and invest in business expansion without worrying about cash shortages.
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How Does Trucking Factoring Work?
- Step 1: You invoice clients for services rendered.
- Step 2: Assign unpaid invoices to the factoring company.
- Step 3: The factoring company advances 80-90% of the invoice value.
- Step 4: The factoring company collects payment from your clients.
- Step 5: Once payment is received, the factoring company deducts its fee and sends you the remaining balance.
Recourse vs Non-Recourse Factoring
- Recourse Factoring: If your clients don’t pay, you are required to buy back the invoice.
- Non-Recourse Factoring: The factoring company assumes responsibility if a client defaults on payment. However, non-recourse factoring tends to have higher fees.
Benefits of Logity Dispatch’s Factoring Services
- Focus on What Matters: We help you access reliable factoring partners, ensuring smooth operations and steady cash flow.
- Industry Expertise: We understand the trucking industry and work with trusted partners who offer the best factoring deals.
- Comprehensive Support: Our team provides expert guidance throughout the factoring process, ensuring you get the most out of your factoring agreement.
Get Started with Our Factoring Services Today
Logity Dispatch helps trucking companies maintain their financial health by providing access to the best factoring services in the industry. Contact us to learn more about how factoring can benefit your business and start boosting your cash flow today.
