TransCore announced Thursday, Nov. 8, that it is partnering with factoring service provider Advance Business Capital to expand the selection of providers and integrated factoring services offered to freight brokers and carriers within TransCore’s Internet-based 3sixty Freight Match logistics service.
Factoring, or the cash sale of accounts receivables, is an alternative source of financing that eliminates many of the traditional qualification criteria. Transportation carriers often wait for payment from 30 to 60 days while load providers process invoices. Smaller carriers with limited cash reserves often need payment more promptly to cover driver payroll and operating expenses and for the security to accept additional loads. For growing carriers who need operating capital, factoring is a practical source of funds.
Factoring arrangements are more flexible than traditional bank financing in regards to funding increases in sales volumes, since the primary consideration is the creditworthiness of the broker or shipper responsible for payment. Substantial cost savings also may be recognized, as the factoring client can eliminate the need to establish its own credit, collection and accounts receivable departments.
Once integrated into TransCore’s freight-matching software, Advance Business Capital’s additional factoring services will allow TransCore’s customers more options to locate, arrange and finance loads risk-free on one online platform, the companies say.
“TransCore’s alliance with Advance Business Capital is another in our series of financial service partnerships that demonstrate our commitment to providing integrated services that add value and differentiate our service,” says David Schrader, vice president of freight business services for TransCore. “The use of applied technology in this important arena is specifically targeted to improve both the cost and effectiveness of working capital solutions to our transportation customers.”