WareMatch Glossary
Freight Factoring
A financial service where shippers sell unpaid freight invoices to a third party for immediate cash.
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Updated 2025-10-01
Definition
Freight factoring provides liquidity to carriers and shippers by advancing cash on outstanding invoices, improving cash flow.
Overview
Overview
Freight factoring helps small and medium transport companies maintain operations without waiting for long payment cycles.
Benefits
- Immediate cash flow
- Reduced financial risk
- Improved working capital
Example
A trucking company factors its monthly invoices to a finance firm to receive immediate payment instead of waiting 30–60 days from shippers.
Tags
#Freight Factoring#Finance#Logistics#Cash Flow
Related Terms
Freight Brokerage
Freight Audit
Transportation Spend Management
