Freight bill factoring is a great way to improve your cash flow especially if you have a new freight brokerage business. Financiers and banks usually require proof of profitable running of the business over the past three years at the least before they consider your case for approval of credit. If the age of your business is below the specified limit it will not be possible to submit the necessary papers. This means you will be denied credit, which in turn can threaten the very survival of your freight business. The usual time client's take to clear freight bills is anywhere from one to two months. In the meanwhile you have to make weekly payments to your drivers and also take care of many other business expenses.
Unless you have sufficient means of your own you may find it extremely difficult to make your business survive.

Freight bill factoring comes to your rescue in such a situation. Its working is quite simple. You forward copies of your freight invoices to the factor after delivery and request a cash advance. The factor advances you up to 90 percent of the invoice value, which you can use to cover business needs.

The difference in freight bill factoring is that approval for finance is not dependent on your own credit ratings but on the credit worthiness of the clients to whom you provide service. The better the credit worthiness and reputation of your clients, the easier it is for you to qualify for freight factoring finance. Moreover, it also offers the advantage of greater financing with an increase in the value of your invoices.

It is one of the most efficient ways of obtaining freight bill financing as reputed freight factoring companies usually take just about an hour to approve your request. Once your factoring request is approved, your account gets credited within the next twenty-four hours. The factor then waits till your client clears your bills after which your account is settled and if there is any balance remaining after deducting the factoring fee that needs to be credited to your account that is promptly done and the account settled.

The entire responsibility of collection on the invoice is that of the factor of which you are relieved, and free to concentrate on building your business for better functioning and profits. Most of the work related to processing of invoices like posting invoices, depositing checks, entering payments, producing computer reports etc. is handled by the factor. It provides you an unlimited source of ready capital for your freight brokerage business as the limit of finance available to you keeps on increasing as you grow your business by servicing reputable clients. No other form of financing incorporates this special feature. This also helps you put a stop to offering volume discounts and early payment discounts that make you lose more money.

Freight bill factoring is the best solution for taking care of all your urgent cash needs for efficiently running your business. It is economical as compared to other forms of financing and can be availed of with minimal paperwork and hassles.