Truck Factoring Working With Truck Dispatching are two important functions in the transportation industry, and they can work in collaboration to benefit trucking companies and independent truck dispatchers. Here’s a summary of how they can work together
Truck Factoring Working With Truck Dispatching
Truck factoring, also known as freight factoring, allows carriers and owner-operators to turn unpaid invoices into cash. A third-party factoring company buys outstanding accounts receivable at an advance rate (usually 80% to 90% of the value) and then collects on those unpaid invoices themselves.
Factoring is beneficial for trucking companies as it provides immediate funds which can be used to cover overhead costs, pay for fuel, driver pay, and other operational expenses.
Factoring companies also handle the risk of non-payment, which is particularly advantageous for trucking companies, especially small businesses or those just starting out.
Truck dispatchers play a crucial role in locating high-paying freight rates, negotiating the best rates, procuring carrier-approved freight, and handling paperwork for their clients.
Dispatch partners remain up to date with freight rates, lanes, and carrier rate terms, and provide assistance for routing and other trucking-related tasks.
They continually research to identify dedicated freight for regular, anticipated load planning, allowing trucking companies to work efficiently.
Truck dispatch partners, such as a dispatch company, can collaborate with factoring companies to streamline the process of invoicing and collection. Dispatch partners can submit necessary paperwork to the factoring company for invoicing and collection, thus enabling faster payment for trucking companies.
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