Are you missing additional income from not partnering with factoring companies?
When you build a working relationship with factoring companies, you also have the opportunity in many cases to be a partnered referral agent with their funding company. This can lead to you earning up to 12% profit commissions on the life of the referral account made by you. Many people are creating an income and making a full time living by just referring new business opportunities to great factoring companies.
Below I will explain to you 5 reasons why you should be networking with a factoring company today. Learn more about what is freight factoring here
1. Most factoring companies will pay you directly as a freight dispatcher when you are dispatching a trucking company already set up with their accounts receivable funding. You have the ability to grow your dispatch business and provide services to the trucking company while being involved with the funding on each load. Many factoring companies will work with you on the funding of each load by you submitting the load documents and invoices on behalf of your carrier and their client. The factoring company will then pay the carrier and also you at the same time. This allows you to focus on the load movement and processing documents are now audited and covered daily with transparency and consistency. You will want to contact factoring companies and ask about their referral program and also if they work with dispatchers who are involved with the dispatching and billing of their trucking company.
2. Factoring companies allow you to gain from their professional credit check and financial safety solutions. This allows you to be able to offer protection against dead beat paying brokers and keeping your trucking company from facing a no paid load situation. Working with factoring companies allows you to have several credit check options to keep current and strong financial loads. Having options to offer your carriers is the value of your services for them. Having a credit check program will keep you and your carriers protected to grow.
3. Working with a Factoring company gives you credibility with carriers. Having the option to let a carriers factoring funding company pay you for your dispatch services gives the carrier one less bill to have to worry about. It also allows the load to be transparent and each party is completely aware of fees and any documents associated with the load. Working with a factoring company allows a dispatcher to build a streamline billing and invoice process that is simple and efficient. Carriers will be more comfortable working with you and also they will realize that you are valuable to their business. I have experienced in many cases if the factoring company is comfortable and impressed with how you offer the funding and dispatch services for their clients, the factoring company will refer some of their other trucking clients that might need your dispatch services. You can recreate your system within the same factoring company with different carriers. Credibility begins to grow your logistics business. How to handle the dispatch system, document funding, communication with the factoring company, and overall the flow of the loads document process, will determine how far you can grow within the industry. Factoring companies are more than willing to work with anyone who can help the funding of loads process more efficient and streamlined.
4. A factoring company allows you to build a funding foundation for your career. Getting paid by multiple companies and also trying to collect from carriers is difficult. Working within factoring companies allows you to build a solid funding process that insures your money arrives in your bank account weekly if you moved a load. Starting your business foundation with this funding concept will allow you to organically add carriers to your dispatch services who are working with the same factoring company as yourself. You have the ability to build a relationship with the factoring companies that gives you the tools to make your dispatch services even better. Knowing how and being able to process getting paid is a must for you and your carrier. Anyone new to logistics or has years of trucking experience should consider this and starting off this way just makes sense. There is nothing more important than to network with factoring companies. Having several factoring companies to work with you is critical if you’re going to be a freight broker or truck dispatcher! Start calling freight factoring companies today.
5. My Favorite! You can make a long term residual income by referring business to a factoring company. It is no secret that factoring companies will pay you for business referrals. In most cases up to 10 or 12 percent of the commission gained on the factoring of each load. One important factor to realize is that these referrals can turn into a nice ongoing monthly check. Referring one trucking company for factoring begins to pay immediately and in many cases the trucking company begins to grow and so does your monthly check. A great way to help your clients is to refer them to great factoring companies with the lowest rates and best services. This will help the trucking company gain funding, you are able to dispatch them and get paid weekly, and finally. you also receive a monthly check from referral commissions. The best part is helping the trucking company grow while your monthly commission checks increase together.
You are streamlining your business income when you work with factoring companies. This is another tool that you have to offer your clients and what really makes you a true freight broker! Consider contacting new factoring companies and inquire about their referral programs. When you are able to speak with them you can also ask if they work with dispatchers directly on funding a carrier’s invoice with a dispatch fee attached to the load. You can get to know the factoring companies who can work with you and begin to refer carriers that want your services. You are building a foundation for your logistics funding.