Is freight factoring worth it?
Photo by Erwan Hesry on Unsplash
There are an array of elements that connect together in order for a factoring company to determine the rate they offer you. One of the most main pros of factoring for many interested carriers is that they consider the creditworthiness of your customers instead of your own. They use this to establish the value of the business, therefore approving your company and setting a rate.
The amount of invoices made and the amount of billing on the invoices is also a point of consideration. The time period your customers take to pay invoices is also a determining factor.
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A California-based freight forwarder, Boateng Logistics, has filed for bankruptcy liquidation, leaving trucking, logistics, and factoring companies owed millions.