what is Factoring for Freight Brokers?
Factoring for freight brokers is again just accounts receivable factoring. In the trucking industry there are all sorts of laws give what is called the “carrier of record” (the company who hauled the load as indicated on the bill of lading) specific rights to get paid. These rights can complicate the factoring process and increase a factoring company’s risk of not getting paid. Freight brokers usually do not haul the actual load but rather they broker (arrange for) the load to be hauled. If they are not listed as the carrier (sometimes they are sometimes they are not) then there is more work a factoring company has to do to make sure those invoices get paid and that the carrier of record is not owed for the invoice. Factoring for freight brokers is basically a more specialized factoring service in the factoring industry. You can learn more about accounts receivable factoring at Factorpedia.
