FreightCash
Why Factor How Does It Work? Why Use FreighCash? Does My Company Qualify? Factoring Terminology Apply Now
Photo
image
image

Freight Factoring Terminology

ADVANCE RATE
Amount of money provided immediately to the company factoring its Accounts Receivable expressed as a percentage of the total invoice amount. Advance Rates usually range from 75 to 95%.

DISCOUNT FEE
Interest rate charged to the company factoring its Accounts Receivable. Discount fees are a flat fixed percentage of the total invoice amount no matter how long the customer takes to remit payment.

FACTOR
A factor is a company that provides operating capital to businesses by purchasing their Accounts Receivable.

RESERVE OR HOLDBACK
Amount of money that is not immediately provided to the company factoring its Accounts Receivable expressed as a percentage of the total invoice amount (Advance Rate + Reserve = 100% or Total Invoice Amount). This money is transferred to the factoring company once payment is received by the factor.

Fill out a Client Profile and start getting your cash immediately.


image Applying is Fast, Easy and Free! Apply Now

image
image
Free eNewsletter
Subscribe to the FreightCash Newsletter and start improving your cashflow immediately!
First name
Last name
Email address
image
image
image
image
Copyright © 2017 FreightCash.com. All rights reserved.