Running a Successful Freight Brokerage

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Rich T has 5 Published Articles

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Running a Successful Freight Brokerage

Posted On : Dec-20-2011 | seen (252) times | Article Word Count : 387 |

Are you running a freight brokerage or looking to start? It can be very profitable but is incredibly cash flow intensive. You are maintaining the happiness of two different clients simultaneously. Your drivers want to be paid quickly and your large corporate customers will demand net 30 payment terms. It can be tough babysitting them both at the same time.

First, let’s look at what a freight brokerage actually does. Freight brokers use their familiarity of the shipping industry and technical resources to help shippers and carriers achieve their goals. Many companies find the services provided by freight brokers very important. In fact, some companies employ brokers to manage all of their shipping needs.

Most growing brokers can’t afford to wait 30 days to get paid by their customers. Operating expenses add up quickly. Paying your drivers might be a problem unless you have significant working capital on hand. And let’s face it, most of us don’t have rich relatives ready to invest in a new business venture. If you can get bank financing, do it. More than likely you will run into issues in today’s economy if your credit is not next to perfect and you are somewhat new to the industry. That eliminates the majority.

A key financial option for many freight brokers is to utilize a factoring company. Freight factoring supplies you with fast cash for your ongoing operating expenses. The main qualification is often based around the credit worthiness of the customers the freight broker is looking to work with.

When working with a factoring company, you’ll also gain additional services that can reduce your workload and speed up production. You’ll be working with a dedicated account manager that knows your business, gain access to unlimited credit checking services, and reports to improve your ability to make informed business decisions.
Freight broker factoring can be an ideal solution for freight brokers who can’t afford to wait 30 or more days to get paid and wish to compensate their drivers in a timely manner. This will develop better relationships within the industry and keep your business running smoothly with increased cash flow. Freight broker factoring offers a better sense of control over your business.

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<h1>Running a Successful Freight Brokerage</h1> Author: <a href='http://www.articleseen.com/profile_Rich T.aspx'>Rich T</a> Are you running a freight brokerage or looking to start? It can be very profitable but is incredibly cash flow intensive. You are maintaining the happiness of two different clients simultaneously. Your drivers want to be paid quickly and your large corporate customers will demand net 30 payment terms. It can be tough babysitting them both at the same time.

First, let’s look at what a freight brokerage actually does.  Freight brokers use their familiarity of the shipping industry and technical resources to help shippers and carriers achieve their goals. Many companies find the services provided by freight brokers very important. In fact, some companies employ brokers to manage all of their shipping needs.

Most growing brokers can’t afford to wait 30 days to get paid by their customers.  Operating expenses add up quickly.  Paying your drivers might be a problem unless you have significant working capital on hand.  And let’s face it, most of us don’t have rich relatives ready to invest in a new business venture.  If you can get bank financing, do it.  More than likely you will run into issues in today’s economy if your credit is not next to perfect and you are somewhat new to the industry.  That eliminates the majority.

A key financial option for many freight brokers is to utilize a factoring company.  Freight factoring supplies you with fast cash for your ongoing operating expenses.  The main qualification is often based around the credit worthiness of the customers the freight broker is looking to work with.

When working with a factoring company, you’ll also gain additional services that can reduce your workload and speed up production. You’ll be working with a dedicated account manager that knows your business, gain access to unlimited credit checking services, and reports to improve your ability to make informed business decisions.
Freight broker factoring can be an ideal solution for freight brokers who can’t afford to wait 30 or more days to get paid and wish to compensate their drivers in a timely manner. This will develop better relationships within the industry and keep your business running smoothly with increased cash flow. Freight broker factoring offers a better sense of control over your business.
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Invoice Factoring Company
Accounts Receivable Factoring Company
Freight Invoice Factoring Company

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