Freight Factoring for Shipping Companies
As the owner or fleet manager of any shipping or trucking company, freight factoring is a service which should definitely be considered when it comes to financial details and ease of operations. This is a service which offers an advance on receivable goods, paying the delivering company on the same day that they complete their assignment in return for a small fee associated with completion of the service. While at a glance this can seem like a bit of a trivial arrangement, it’s actually a great boon for anyone who owns a shipping company for several reasons.
First and foremost, freight factoring provides shipping companies with a fast and reliable resource of working cash flow. Because business owners do not have to wait for extensive periods of time for payments to come through, they have much more flexibility in the budget for development. They can use the funds in order to pick up more goods for delivery, purchase new vehicles and equipment, hire more drivers, or complete any other tasks which they deem necessary for a happy and healthy work environment and the maintenance of a lucrative business. Many who invest in this type of arrangement take advantage of this revenue by getting more trucks on the road. The more goods they have in the lanes, the higher their profits will be when the deliveries are made. Furthermore, aside from the small fee, this service comes at practically no cost to the shipping company who signs on. In fact, in most cases the back office work regarding paperwork and accounts are handled by the factoring firm, freeing up employees of the shipping company to attend to other crucial duties necessary for operational stability in the workplace, further facilitating growth, development and stability for the company.
Some freight factoring firms also offer advanced services such as back office support or technology that not only keeps track of deliveries and payments, but can actually design a complete and comprehensive business plan to help get any shipping company on track. This is a great opportunity for a business of any size or shape.
Of course, no financial arrangement is a perfect fit for every company. Therefore, speaking with a professional or a representative of a factoring firm will be the best way to determine if freight factoring is an ideal solution to a shipping company’s financial issues and future growth. Exploring all available options prior to making a decision is the key to building a happy, healthy and successful shipping company.