The freight broker life can be a stressful life. You spend your days as a middle man working with shippers and carriers to get loads from point A to point B. Stress really sets in when it’s time for your carriers to be paid, but the shipper hasn’t paid you; because, let’s be honest, to retain quality carriers, you need to be able to pay them fast and consistently.
Sure, you can pre-pay your carriers, but you would need to have a lot of cash on hand. This option is hard for most freight brokers, because not many have that kind of capital lying around. Not to mention the strain that pre-paying carrier puts on your cash flow!
There is another solution to keeping your freight brokerage rolling – invoice factoring.
With freight broker invoice factoring, you sell your invoices to a factoring company for a small percentage, allowing you (and your carriers) to get your money fast. This solution keeps your quality carriers loyal to running loads for you. This kind of solution really can set you apart from the thousands of other brokerages out there.
With freight broker factoring, you can grow your business at your pace, and your financing will grow with you. Invoice factoring is a scalable financing option. Factoring isn’t like a loan that can overwhelm you with a heavy payment during a slow month. Also, there is no pre-determined limit on how much you can factor. You are only limited by the number of invoices you have to sell.
It’s also much more than just quick money to you and your carriers. Established invoice factoring companies, like Triumph Business Capital, provide a back office for their clients. Calling your shippers to chase down payments no longer has to be on your to-do list, because collection calls and services are included with your factoring relationship with Triumph.
Building credibility among carriers can also be a long road to haul when you are a broker trying to grow your business. Triumph Business Capital offers you a way to build your credibility while using their factoring services. When you factor with Triumph, you will automatically earn a green check mark on the DAT load boards, showing every carrier on the load board that you are financially stable and partnered with the industry leader in invoice factoring.
Freight broker factoring can be the key to an efficient freight brokerage, allowing you to pay quality carriers consistently and quickly.