Factoring, or the cash sale of accounts receivable, has been around 4,000 years dating back to the Mesopotamian King Hammurabi. On this continent, merchant bankers factored the sale of cotton, furs and timber from the early colonial settlers. So, with hundreds of finance companies out there, what’s the big deal with factoring accounts receivables from people who live, eat and breathe only trucking?

 

Factoring, or the cash sale of accounts receivable, has been around 4,000 years dating back to the Mesopotamian King Hammurabi. On this continent, merchant bankers factored the sale of cotton, furs and timber from the early colonial settlers. So, with hundreds of finance companies out there, what’s the big deal with factoring accounts receivables from people who live, eat and breathe only trucking?

Factoring, or the cash sale of accounts receivable, has been around 4,000 years dating back to the Mesopotamian King Hammurabi. On this continent, merchant bankers factored the sale of cotton, furs and timber from the early colonial settlers. So, with hundreds of finance companies out there, what’s the big deal with factoring accounts receivables from people who live, eat and breathe only trucking?

For a factoring arrangement to work well, the Factor has to become an extension of your company – an outsourced credit and collections department. But, as you well knowl, the administrative requirements of your business are changing daily. Your Factor needs to know as well, if not better, than you:

• Invoice documentation requirements by shipper
• Best practices for incorporating truck stop scanning and electronic invoicing
• Appropriate credit lines by shipper
• Strength and stability of freight brokers and 3rd Party intermediaries
• How to increase fuel card credit lines
• Ways to simplify fuel card disbursements
• How to maximize sources of credit for truck and trailer financing
• How best to integrate the full menu of TruckersB2B service providers

Accounts Receivable Factoring may or may not make sense for you and your company. But whatever avenues of business credit you pursue, you’ll inevitably find that the most stable, flexible and plentiful sources of funds are those companies most dedicated to your own business.