Freight Broker Factoring: The Interstate Capital Advantage

For nearly 25 years, Interstate Capital has been among North America’s best factoring companies for freight brokers. With its extensive experience in freight broker factoring, Interstate Capital has developed broker-specific cash flow solutions that are convenient, easy and fast.

As brokers juggle customers, motor carriers, routes, equipment, weather conditions, deadlines, and sales efforts to recruit more customers, they can face significant financial challenges. These challenges can jeopardize their business, especially when their shippers and consignees don’t pay them for 30, 60, or even 90 days. That’s when freight brokerage factoring comes in. Freight broker factoring companies purchase the freight broker’s invoices and then make those funds available for them upfront to cover operating expenses and payments to motor carriers. A top-tier freight broker factoring company like Interstate Capital can advance funds on the same day that an invoice is verified with proof of delivery, rate confirmation, and other usual paperwork. After the broker’s customers pays the factoring company on the invoice, any balance on an invoice is sent to the freight broker, minus a small factoring fee.

Benefits of Freight Broker Factoring

The main benefit of factoring for freight brokers is that factoring closes that gap between paying carriers and receiving payment for loads. The factoring company will pay your carriers as soon as they deliver your load. You pay a small factoring fee for the benefit of paying your carriers sooner. Use that benefit to earn quick pay discounts from your carriers. The most common reason for freight brokers to choose factoring is improving cash flow. You can pay your carriers, your insurance and taxes, and other overhead expenses without waiting 30 or 60 days or even longer to get paid for loads.

When you partner with Interstate Capital, we will be able to issue payments to your carriers as soon as you send us your invoices, which means that you can continue doing business and cover your costs while focusing on making money instead of waiting for your clients to pay you.

However, resolving this cash flow challenge is not the only benefit. Other benefits of freight broker factoring include more working capital for your business, without incurring more debt. The key is that you are simply receiving an advance for work that is already completed: you are not borrowing money that must be paid back out of unknown future revenues. A good trucking freight broker factoring company will help you stabilize your income and better predict your monthly and annual revenues.

Another benefit is that you can qualify quickly for this kind of alternative funding at the best freight broker factoring companies, regardless of your personal credit score or collateral. The factoring company studies the creditworthiness and payment history of your customers, not your background. If you have not qualified for a bank loan in the past, you can still qualify for factoring if you work with dependable customers. At the same time, you can improve your own credit ranking: use your infusion of cash to pay off bills and keep current with expenses.

Benefits of Factoring with Interstate Capital

freight broker factoring

Since 1993, freight brokers have maintained a healthy cash flow and have been able to set aside enough funds to grow their businesses by partnering with Interstate Capital. Here are the top ten benefits for freight brokers that factor their invoices with Interstate Capital:

  1. Quick pay to carriers with Interstate Capital’s money, not yours
  2. Fuel advances for your carriers from Interstate Capital
  3. Expert collections team to contact your customers for payment, so you don’t have to
  4. Professional in-house credit checks on shippers to protect you against loss
  5. Improved credit scores with the on-time payments to carriers
  6. Dedicated account manager with years of experience working with freight brokers
  7. Choice of funding methods for you and your carriers
  8. Broker bonds program and payment guaranties for your motor carriers
  9. Unlimited credit available with Interstate Capital’s motor carrier clients
  10. Industry-leading Freight Payable System for easy and fast carrier settlements

Revolutionary Freight Payable System

Timing is critical for freight brokers whether they are searching for the right motor carrier for an expedited load or waiting for a big check from a customer. As one of the industry’s best freight broker factoring companies, Interstate Capital has worked hard to develop easy-to-use and reliable systems that get brokers and carriers paid within hours of pick-up and delivery. These systems have helped the company build a strong track record of helping freight brokers succeed and grow.

This expertise in freight broker factoring has led to the development of Interstate Capital’s revolutionary proprietary payment management system, Freight Payable Systems (FPS).  FPS is the only online freight broker factoring system designed exclusively for the freight brokerage industry. It is available at no additional cost only to freight brokers who factor their freight invoices with Interstate Capital.

The system efficiently handles all the paperwork, invoices, bills, and automatic payments to drivers. FPS collects and stores each load’s paperwork and matches the broker’s invoice to the motor carrier that delivered the load. The funds are carefully tracked and sent to the carrier that hauled the freight when the broker is ready to release them.

Freight Broker Factoring

Factoring with Interstate Capital allows freight brokers to focus their time on what they do best: keeping customers’ freight moving safely and on time.

The FPS program, managed minute-to-minute by the trained FPS team, helps brokers by “setting aside” and ensuring that the cash coming in from a shipment gets paid to the right carrier.

  • The freight broker decides when and how much motor carriers will be paid and if they will receive fuel advances.
  • Interstate Capital follows the broker’s instructions and forwards payment to the carrier.
  • The broker receives the difference between the invoice amounts and the carrier payments.

The FPS process solves the challenge faced by some freight brokers who, for a variety of cash flow reasons, come up short when it’s time to pay carriers. The freight broker then has to use the proceeds from new  loads to pay carriers and gets caught in a cycle of catching up. When brokers factor with Interstate Capital, the  FPS program helps them avoid this predicament. According to the Federal Motor Carrier Safety Administration, freight brokers must maintain records that segregate funds payable to carriers from their general operating funds. FPS helps freight brokers remain in compliance with these regulations.

Why Choose Freight Broker Factoring?

Freight broker factoring is a valuable financial solution for busy transportation professionals. Not only does it ensure that carriers are paid on time, every time, but it gives brokers the working capital needed to ensure that they can continue serving their customers. Instead of waiting for freight bills to be paid, they can spend more time focusing on matching motor carriers to loads and tracking deliveries. Factoring companies that pay brokers can help them increase your profit margins.

Interstate Capital’s unique freight broker payment program, along with its strong team of dedicated freight broker specialists, can give freight brokers the edge they need to get ahead and stay ahead. Are you ready to take your freight brokerage business to the next level?

Freight brokerages often struggle to fund their businesses because conventional financing routes such as bank loans or expensive merchant cash advances don’t always provide the ideal solution. Factoring on the other hand gives you immediate access to cash without incurring debt. The factoring company will pay your carriers as soon as they deliver your load. You pay a small factoring fee for the benefit of paying your carriers sooner.

Use that benefit to earn quick pay discounts from your carriers. The most common reason for freight brokers to choose factoring is improving cash flow. You can pay your carriers, your insurance and taxes, and other overhead expenses without waiting 30 or 60 days or even longer to get paid for loads.

When you partner with Interstate Capital, we will be able to issue payments to your carriers as soon as you send us your invoices, which means that you can continue doing business and cover your costs while focusing on making money instead of waiting for your clients to pay you.

Some of the benefits that freight brokers receive when they partner with Interstate Capital include the following:

  • Quick pay your carriers with our funds
  • Provide fuel advances to your carriers with our funds
  • Funding in as few as 2 hours
  • Credit approval for your shipper accounts
  • Unlimited credit with carriers who factor with Interstate Capital
  • Broker bonds program available

Applying and qualifying for freight brokerage factoring is easier and faster than traditional bank loans – and comes with special benefits tailored to logistics companies. Contact us for a factoring rate quote today.

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