Transform Logistics Cash Flow Fast with Invoice Factoring

How Invoice Factoring Works

The process of invoice factoring is straightforward. A logistics company submits its unpaid invoices to a factoring company. The factor then advances a significant portion of the invoice amount, typically around 70-90%, to the logistics company. Once the client pays the invoice, the factoring company remits the remaining balance, minus a small fee for the service. This fee usually ranges from 1% to 5% of the invoice value, depending on various factors like the creditworthiness of your clients and the volume of invoices factored¹.