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The transport industry often faces delays in receiving payments from freight brokers or shippers, affecting cash flow for essential expenses like driver wages, fuel, and maintenance. The solution to this is provided by freight factoring which provides instant cash advances against outstanding invoices. The invoices are usually paid with 90-98% by factoring companies within 24-48 hours and fully recovered by the shipper in future with a slight fee. This assists small fleets to control liquidity, eliminate payment delays and decline the administrative load. Considering a factoring service provider, it is important to evaluate the terms of the contracts, charges, funding sources, and the factoring recourse or non-recourse.

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