Factoring???

I am new to the freight agent sweep. I am currently looking at a few companies that will train new agents. In my search I keep hearing the term "factoring" can some one explain to me what exactly that is..Again, I am new to freight business. Thanks

Hi Nechia, factoring is a term for companies out their that will take a carriers bills of lading (loads that have been delivered) and basically buy them off the carrier for a price and they will handle collection of the profits from either the shipper or brokerage company. In essence for a small percentage they will pay a carrier within a couple of days for their bills and they will be the collectors of the money however long that would take. Most brokerages out there can take up to a month to pay and some carriers can't afford to wait that long. I hope that makes sense.

www.articlesbase.com/ this site has tones of articles about factoring and other good info about the industry