Better Options for Factoring Services for Trucking Companies

Operating a business, especially a small one or a startup, comes with its challenges, and maintaining a consistent cash flow is crucial for survival. Unpaid invoices can disrupt operations significantly, especially when funds are needed for essential expenses like payroll or rent.

That’s why Load Hub America has partnered with professional factoring companies to offer our clients specialized factoring services that can transform their business operations.

What is freight factoring?

Freight factoring, also known as truck factoring service, enables carriers and owner-operators to convert unpaid invoices into immediate cash. Essentially, a third-party freight factoring company purchases outstanding accounts receivable at an advance rate typically between 80% to 90% of their value and assumes responsibility for collecting on those invoices.

Why You Should Consider a Truck Factoring Service

In the trucking industry, factoring means transferring the risk of non-payment to another party. For many trucking companies, receiving a discounted amount on invoices is worthwhile because it provides immediate funds to cover overhead costs or take on additional work to increase revenue.