What Is Transportation Factoring?

April 12, 2016

Hello. I'm Paul DeLuca, founder of Meritus Capital. Today, we're talking about transportation factoring. What exactly is it?

Transportation factoring includes the industries of trucking, logistics and drayage. An accounts receivable factor, will purchase invoices from these companies to be able to generate cash, immediately, every day that an invoice is created.

Let's think of an example. If you're a trucking company and you've just hauled to the other side of the country and delivered your load, you have a lot of gas to pay or you need to get back. Well, accounts receivable factoring company will take the invoice. We'll give sometimes up to 95%, even 97%, of that invoice today, and the factor will wait for 30, 60, even 90 days to get paid instead.

Well, that's what transportation factoring is all about. I hope you found this video useful. If you have any questions please email us. We'd love to answer your questions in another video series. Until then, make it a great successful day.


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