You should factor freight bills in order to provide liquidity to your trucking business. Typically, cash flow problems can occur when a trucking company has to wait for a period of 30 to 60 days to get paid.
Therefore, when you factor (sell) your freight bills your trucking business receives an immediate cash injection from Capital Depot, rather than having to wait for a payment.
Furthermore, when you decide to factor (sell) your freight bills it eliminates the risk of not getting paid by a broker or shipper.
Now the instant cash that is provided by factoring (selling) your freight bills, can be used for whatever reason your want, such as:
• Paying Drivers
• Paying Fuel
• Paying Insurance
• Paying Taxes
