Money is oxygen for any business, what happens when supply of money for a business stops? Obviously it will die out. This is especially true in case of transportation businesses where the owner is required to put in lot of money and has to wait for few months before he receives money from his clients.
During those few months he still has to bore some expenses related to other orders. Where does he get all that money from? Obviously he will look for resources from where he can get some money. They cannot refer to banks unless they have something to offer as collateral. They know for sure that in the absence of money their business will die out.
Then what else they can do? They can refer to a freight bill factoring company. Freight bill factoring also known as transportation factoring refers to the practice of lending money to trucking businesses against pending invoices. They benefit from interest deducted at source while giving money to the owner that is the owner receives money less the interest amount.
During those few months he still has to bore some expenses related to other orders. Where does he get all that money from? Obviously he will look for resources from where he can get some money. They cannot refer to banks unless they have something to offer as collateral. They know for sure that in the absence of money their business will die out.
Then what else they can do? They can refer to a freight bill factoring company. Freight bill factoring also known as transportation factoring refers to the practice of lending money to trucking businesses against pending invoices. They benefit from interest deducted at source while giving money to the owner that is the owner receives money less the interest amount.
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