What is it that makes freight factoring so convenient? There are many advantages to using invoice factoring in the transportation industry. One benefit is simply the access to your funds that are normally tied up in accounts receivables. Another benefit is that instead of applying for a new loan anytime you need extra cash, you can just factor more clients’ invoices. With no minimum volume requirements, you get to decide how to factor your invoices, creating a very flexible funding option. On the other hand, bank loans or credit cards end up restricting you to a pretty hard limit that might not work with the business plans you have in place.
Another benefit is that invoice factoring is not a loan. This means that the application process is much easier and there isn’t a need for a deposit to be put down. This also means that there’s no interest racking up or a need for any repayment. Factoring is a debt-free funding option.
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