![]() Usually, the factoring company will pay you nearly the entire earnings of the load within a few days. Jason Hurley, 15+ years of experience How Does a Factoring Company Work for Truckers?įactoring is a process where you sell your load invoice to a company specializing in collecting and processing Accounts Receivable. Still, drivers are willing to make the exchange for keeping their wheels turning. Additionally, factoring companies typically charge additional fees for their service, reducing the amount you earn on that load. In exchange for this service, the truck driver gives up a small percentage of the invoice to the factoring company. ![]() In contrast, the factoring company deals with invoice payment processing and collection. What is Factoring in Trucking?įactoring is a way for truckers to receive much faster payment for their services. Factoring companies exist to close the distance between completing a load and getting paid for it. ![]() In addition, you have bills coming due, and you still need fuel to deliver your next load, not to mention something to eat. But you have a business to run, and you can’t afford to wait sixty or ninety days for that load you delivered last night. Unfortunately, after the paper is signed, receiving an actual freight payment may take anywhere from a week, if you’re lucky, up to several months. Their signature indicates they have accepted the load and intend to pay the trucking company or owner-operator for transporting the cargo. At its most basic level, a freight invoice is a piece of paper the receiving party signs when you deliver a load. ![]()
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