Freight Factoring began in the early 19th century, when entrepreneurs realized that they could make a profit on the transportation of goods by taking out loans from investors. This type of financing became known as “freight factoring” and allowed businesses to purchase products from suppliers and ship them to buyers, without having to wait for slow payments from buyers.

The first freight factoring company was founded by a man named Augustus H. Doolittle, who founded Doolittle & Hatch in 1839. Doolittle & Hatch provided financing to businesses, allowing them to purchase goods from suppliers and ship them to customers, without having to wait for slow payments from customers.

Today, freight factoring has become an essential part of the transportation industry. Companies that need to purchase shipping services, but don’t have the money on hand to do so, can use freight factoring to finance their shipments. Freight factoring companies provide these companies with the cash they need to purchase the services they need.

Freight factoring works by allowing a company to sell its invoices to a third-party factoring company. The factoring company then pays the company a percentage of the invoice amount upfront, and the remaining percentage once the customer pays the invoice. The third-party factoring company then collects payment from the customer.

The advantages of freight factoring are numerous. By using freight factoring, companies can:

• Reduce the amount of time it takes to receive payment from customers
• Reduce the amount of money they need to pay upfront for shipping services
• Purchase goods from suppliers on credit, allowing them to purchase more goods and increase their profits

Freight factoring has become an essential part of the transportation industry, providing financing to businesses that need it and helping them purchase the services they need. Without freight factoring, many companies would not be able to purchase the services they need to effectively deliver their goods.