Freight Broker Finance is one of the fastest growing areas within the Invoice Factoring Industry. So why are more Freight Brokerage Firms to moving to Invoice Factoring? The simple answer, like all industries, is Cash Flow.
In any industry cash is king and smaller brokerage firms have a more difficult time competing with the Cash Flow and stability that larger firms can offer the transportation companies. That is why Freight Broker Factoring is such a fast growing area within the Invoice Factoring Industry.
Freight Broker Factoring helps smaller firms offer competitive products like quick pay or prompt pay programs. They also help establish positive payment trends and a great track record creating lasting relationships with different freight companies.
But those aren’t the biggest reasons freight brokers are turning to freight broker factoring.
A lot of them are utilize letters of credit from their factoring companies in order to prove capacity to both the freight company as well as their clients, helping them to grow their business. With all the benefits that Freight Broker Finance offers there is a danger of connecting with a Invoice Finance company that is new to dealing with Freight Brokers or is looking to learn about it that may cause you to be their training wheels.
It is extremely important that you compare your options and make sure that you are selecting a Factoring Company that understands your industry. If Factoring is something you are looking at for the first time read more in depth about the Benefits of Using Freight Broker Factoring.