Freight factoring is one of the quickest methods for freight brokers, trucking and transpotation companies to secure the working capital they need. Factoring or invoice factoring is used by most industry allowing companies to raise the needed capital for expansion/growth, restructuring or survival.

• Why wait 30-60-90 days for your customers to pay you?
• Freight factoring allow companies to receive the cash on invoices now - not weeks or months from now
• Factoring converting accounts receivables into cash
• It does not require additional collateral and does not create debt

HISTORY OF FACTORING

The origin of the factoring industry has been traced to the days of the Roman Empire or even earlier, but the industry as we know it today in the United States goes back only about 200 years to the early nineteenth century.  Factors evolved from U.S. selling agents for European textile mills. The European mills used the agents to sell their fabrics in the U.S. and paid the agents a commission on sales. The agents also warehoused merchandise and did the shipping for their European clients. As these selling agents prospered and became more familiar with their own customers, they began taking on the job of establishing credit terms and advancing funds to the European mills. The oldest documented factoring firm traced its roots to 1810 and several others were established in the first half of the nineteenth century.  Traditional or old-line factoring is fairly straightforward and is designed for long-term relationships. It involves the purchase of receivables with or without recourse and/or notification to the client's customer.