Freight Bill Factoring: A Factoring Financing

Freight bill factoring provides an advance of up to 90% on slow paying freight bills. The Indian transportation industry is very cash flow intensive. Fortunately, Indian transportation companies have an alternative to conventional bank finance. The alternative is called freight bill factoring, a special type of factoring financing. The biggest challenge for freight bill factoring transportation companies is waiting to get paid by customers. This cash advance allows the transportation company to meet business expenses, and provides relief from slow paying clients. The transaction is settled once the end customer pays the freight bill. The cost of freight bill factoring can vary between 1.5% to 5% per month, depending in the financed volume and the credit quality of the payers.

One of the biggest advantages of freight bill factoring is that it can help your company grow past its existing capital limitations. And as opposed to conventional bank financing, freight bill factoring is easy to obtain and can be set up in just a few days. The most important requirement of freight bill factoring is that you must do business with reputable companies. If you are praying to god for relief, then your prayers have almost been answered, with a little "Factoring Fee" of course!  Freight bill factoring companies can also take over your bill collections, hence freeing you from the tensions of late payments. This is better than taking a loan from a bank, where you would have to submit documents and collateral and would in any case have to pay interest on that loan.

FreightGuru also use non-recourse factoring, where the risk of non-payment of the invoice is their headache, thereby freeing you from bad debts.  Freight bill factoring is easy and a factoring line can be set up in a matter of days. Factoring is making advance available on slow paying freight bills. Factoring enables the transportation and logistics companies to meet their expenses while waiting for their bills to be paid by their customers. Factoring works in a very simple way. Freight bill factoring is in fact an extension of the trucking company's business. It offers an easy alternative to bank loans. Freight bill factoring is flexible as the advances increase, as more freight bills are submitted and factoring fee gets reduced once the turnover increases. Freight factoring can solve all these problems. However, there are some pros and cons to be kept in mind, before you rush to tie-up with any freight bill factoring company. Interested people can also get more details about air charter service by enquiring at- info@freightguru.com or by calling us at (877) 937-3734.