There are few industries in the United States as iconic as the trucking industry. After all, most of the goods we rely on for everyday life are transported to our homes and businesses by the heroes of the highway. But the reality of the trucking industry is that it's difficult to launch and operate a successful business. That’s why freight factoring has become an increasingly popular tool for entrepreneurs in this industry.

Freight factoring is a financial service that enables truckers to access their accounts receivables right away, rather than waiting 30 to 90 days for payment. Here's how it works: A trucking company delivers its product and sends an invoice to the customer. The factoring company pays a portion of the invoice, usually 80-90 percent, up front. The factoring company then collects the remaining balance from the customer once the invoice is paid in full.

The advantages of freight factoring are numerous and varied. First, it gives the trucking company fast access to cash, which it can use for whatever is needed most. This may include making necessary repairs, buying new equipment, or simply having access to working capital. Second, the factoring company assumes all of the credit risk for the customer, meaning the trucking company doesn’t need to worry about that aspect of the transaction. Finally, freight factoring helps trucking companies manage long payment cycles. Instead of waiting 30 to 90 days to get paid, they can get their money immediately and reinvest it into their business.

In short, freight factoring gives entrepreneurs in the trucking industry the necessary tools to launch and grow their businesses, and gives them the financial freedom to pursue their goals. For many, it is the key to the American Dream, and it is a powerful tool that can help make it a reality.

The advantages of freight factoring include:

• Fast access to cash
• Assumption of credit risk
• Managing long payment cycles