Freight Financing: Working Capital Solutions for Carriers

Freight finance solutions address the cash flow challenges inherent in transportation, where carriers must fund operations for 30-90 days before receiving payment. Invoice factoring, freight bill financing, and specialized lending products enable carriers to convert receivables into immediate working capital, ensuring they can cover fuel, payroll, and operating expenses without waiting for customer payments.

Financing Options for Transportation

Factoring companies purchase freight invoices at a discount, providing immediate cash while assuming collection responsibility. Quick-pay programs offered by major shippers pay within days in exchange for modest discounts, improving carrier cash flow without third-party involvement. Equipment financing structures loans against truck values, enabling fleet expansion without depleting operating capital. Fuel card programs provide purchasing power with deferred payment terms, while supply chain finance platforms extend favorable terms throughout logistics networks by leveraging the credit strength of large buyers.