Factoring Invoices as a Freight Broker: Should You Do It Even If You Can Afford Not To?

[@IntangibleStudd59]

Subbed. Thank you sir.

[@trindon9439]

Thank you! 💪

[@freightskills]

You got it!

[@dnell6854]

What difference does it makes if the factoring company is only going to factor a limit amount of credit to customers anyway,It’s still going to fall back on the brokerage,at the end of the day,C’mon dude let’s make sense here,I’m just saying.

[@freightskills]

Well first off non recourse factoring cos don’t make anything they approve fall off on the brokerage. Second off if a customer wants to give you 80k of business and you don’t have 70k in the bank to pay carriers you’ll be in the same spot where you were if you didnt have a factoring company to cover some of it. I’m not sure what doesn’t make sense about what I’m saying? 1. Are you equipped to handle a full accounting department and float 100k plus of payables at any one time 2. If not you need to factor. Keep in mind you’re only making 10k off that 100k before taxes come out. You need to educate yourself about cash flow