Freight Factoring Terms for Beginners
Confused on where to start with Love's Financial? Here's a beginners guide to some of the terms of the trade:
Freight Factoring: The process in which factoring companies like Love's Financial purchase your invoices. Then, pay you part of the invoice in a quick time frame.
Non-Recourse Factoring: A type of factoring in which the factoring company assumes the risk if a customer fails to pay their bill.
Recourse Factoring: With recourse factoring, the trucking company retains liability for the ultimate collection of the factored invoice. This option poses less of a threat to the factor, which means it's often available at a lower discount rate.
Proof of Delivery (POD): Like a receipt, it shows you delivered your load to the customer.
Working Capital: The amount of liquidity that is available for day-to-day operations.
Debtor: A person or institution that owes money to another institution or person.
Freight Broker: The intermediate party between the shipper and carrier.
Shipper: Party that initiates the shipment.
Carrier: Party responsible for transporting goods to the destination.
Accounts Receivable: Money owed by clients to the business.
Freight factoring can seem intimidating at times, but the Love's Financial team is here to walk you through each step. Call Love's Financial today at 1-855-495-5683 to have all your freight factoring questions answered!