FACTORING BROKERS

For truckers or trucking companies that are unfamiliar with the term “factoring broker,” a factoring broker is an individual or business that is factoring their accounts receivable with a factoring company.  In the trucking industry, this particular process is known as freight factoring, and those doing the buying are called factors. Factoring allows a business that may be in need of cash flow the opportunity to borrow against money they expect to receive in the near future.  The company that sells their accounts receivables is known as the factoring broker.

   
The Benefits of Using a Factoring Broker

You might be wondering what benefits there are to becoming a factoring broker if you’re in the trucking business?  The answer is simple.   A broker may choose to sell their accounts receivable invoices if they are in need of immediate cash.  This is a very beneficial for a factoring broker that may be having some financial difficulties or perhaps would prefer to eliminate a shortage of capital.  Also, in today’s economy, many brokers are not able to get loans from local banks, which is where factoring companies come in.  Since it’s so important to have a sufficient amount of cash flow, not only can a brokerage increase their working capital by becoming a factoring broker, but in addition, when using a factoring company it will in all likelihood help a business grow.  If a client of Advance Business Capital, it can provide instant credit for brokers on TransCore’s load boards.

If you want to increase your cash flow

As previous truckers ourselves, we at Advanced Business Capital know all the ins and outs of the trucking industry from every aspect which is why our experience and knowledge are so beneficial to factoring brokers.  If you’re in the market for a factoring company and if you want to increase your cash flow, gain better credit by making sure your drivers are paid on time, Advance Business Capital is the ideal alternative to conventional lending.   We can help turn your accounts receivables into working capital and ready cash flow to pay your bills.  Don’t let your margins evaporate because of a declining credit rating or because of the soft economy.  Instead, when you’re ready for a factoring company, consider Advance Business Capital as your resource.   Remember, all you have to do is get the freight delivered for your customer, send your accounts receivables (your invoice or freight bill) to your transportation factoring company and you’ll receive an advance on the funds.  Your factoring company will pay your carriers and advance you your money the same day.  Once you receive the funds, well… that’s up to you what you do with your money.  Advance Business Capital is here to help you get your money quicker, not spend it for you.