Think of a partnership with a freight factoring company? A positive cash flow can have a major impact on your business. Not only will you be able to get more customers and make more, but you can make payments driver payroll, fuel and all your other expenses will always be paid on time.
If you have already decided you are going with a freight factoring company in your area, then you should start investigating several companies to determine who the best in service to you. Learn to ask a few questions to make sure that you value for money services.
This is an important question, because what you can put in an awkward position if you have to pay for the unpaid bills from customers. Find out if the factoring company handles disputes the debt and that they are normal procedures when trying to look back money from customers.
Do you have what to choose bills I factor?
In some cases, you can weekly workload you Bill and pay your customers every week. In this case, you may not necessarily be a factor company must invoice factoring for you. You may only factor services for larger loads that will be paid after 30, 60 or 90 days. Find out if the factoring company will allow you to decide what you want invoices factor or if you serve your client book.
What kind of extra services you offer (and what should I pay for?) Factoring and bank loans are very different in many ways, but one of the differences more remarkable is the fact that businesses, bank's research to determine whether they are trustworthy and a factoring company will survey your customers to determine whether they reliable or not. Whether freight factoring companies will have to do a credit check on your customers to ensure that they are able to pay bills, or they will give you a list of pre-approved customers who meet their credit requirements.
Find out what process they use to determine whether customers are reliable and whether you will have to pay extra for this verification process.
Last edited by michaelwilsn; 03-31-2016 at 11:17 PM.