What are Load Boards?
Freight factoring is the process used by many different truckers these days to be paid immediately after delivering the load they have transported. Either independent truck drivers or small companies are hiring factoring companies to handle collection on invoices. It is actually the factoring company that is paying percentage or at times, full amount of the freight bill but the difference here is, there’s no upfront fees. There are times that the factoring company holds the remainder in the escrow account which could not be touched until the client got the receivable.
As a result, this gives truckers the fund they need for shouldering the expenses incurred or will incurred on getting another load or on their way home. The factoring company is in charge for collecting the bill. It may sometimes incur employing legal help for collecting on debt or the customer might not pay for months at a time. Hiring a factoring company to take care on all this allows independent truckers to freely get back on road and carry on with their assignments.
Because of the reason that trucking loads are so in demand, it is possible to use filters to search for what you want specifically. And regardless if you are a freight broker or carrier, you are going to find services that suit for you. Depending on the board that you will use, you will find services such as load matching, credit info, message boards, finance of the preapproved loads using factoring, mobile access and a host of other services.
Since the freight board market is so in demand, competition is tough and fierce so you are going to find providers of both free and paid. You will see that the cost of service vary base on plan you have chosen if you go for the paid service. As for the cost of premium boards, it could actually reach to around 100 dollars, a month. As you work with freight board, it sure does come with some merits and demerits. This on the other hand is a big help for freight brokers as well as new owner operators in jumping start their business. But owing to fierce market competition, it sometimes causes others to breakeven or take home slim margin.
As a matter of fact, you are going to find various load boards that have partnerships with companies offering freight bill factoring. It allows clients to finance slow paying freight bill and at the same time, be useful for startups or those who run low on funds. Some factors also offer fuel advances which provides fund for fuel and various other expenses after picking up the load.
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