What is factoring? Infographic

What is factoring? Infographic

Factoring improves a supplier’s cash flow. This is how …

Traditional supplier/buyer interaction 

  • A supplier makes a shipment or delivery and sends an invoice to the buyer.
  • The buyer has the option to pay for the goods by the due date on the invoice or, in many cases, to pay the invoice earlier at a discount.

Enter: Factoring

Factoring improves a supplier’s cash flow. This is how …

  • The supplier makes the delivery and then sells its invoice(s) or accounts receivable (AR) to a third party, often a bank or financial institution, known as a factor.
  • The supplier receives a discounted portion of cash in advance of actual payment of the goods from the buyer.
  • The factor receives a fee, often retaining a discounted portion of the gross invoice once it is paid.
  • The fee to the factor covers its cost of processing invoices and collecting payments, as well as its lending cost of funds.

Source: https://www.freightwaves.com/news/what-is-factoring (Todd Maiden)

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What's the SONAR ROI?

By increasing the number of loaded miles per day your drivers drive by 1% and your rate per mile by $0.03 you will make more per week #WithSONAR.

#WithSONAR you can save up to per week through better bid negotiations and more effective management of your routing guide.

#WithSonar you can add 1 more load per person each day and increase $5 margin per load, earning your company an extra per week.

Disclaimer: Every company’s circumstances are unique. Fixed and variable expenses, market conditions and operational factors vary. Unforeseen events may also affect results. Calculated potential results reflect the consensus expectation of FreightWaves’ experts. Actual results may vary.

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