- 08 Oct
Single Fee Factoring For Small Companies Using Courier Exchange Or Haulage Exchange
One of our funding partners have been able to help provide factoring to a number of small courier companies recently. We are seeking further small couriers and hauliers to provide with invoice funding, if you are in that sector and looking for flexible funding support please get in contact.
Courier Exchange & Haulage Exchange
The facility that has been most popular is single fee factoring, providing funding for small couriers and transport companies that use either the Courier Exchange (CX) or the Haulage Exchange (HX) - or similar online platforms.
Read the: Minimum Critieria For Funding.
The way these platforms work is that they will provide a courier company with more work, and eliminate dead time with real-time freight exchange. The transport companies pay a subscription to the platform. This keeps their vehicles running at full capacity, with load matching based on future destinations. It means that when couriers, and haulage companies finish a delivery, they can easily find loads to fill up return journeys. Or they can use these platforms for more than just return loads.
Single Fee Factoring
The factoring arrangements have been priced on a "single fee" basis. This means that instead of having a service charge and a discount charge, you have a single percentage of invoice value fee, that includes both. This removes the need to understand the complicated calculations that can underlie discount fees, and so it give a very simplistic costing structure - that makes the costs very simple to predict and manage. If you would prefer the traditional model of a service charge and discount charge, that is of course possible.
The primary benefits delivered by the factoring arrangement are prepayments against sales invoices as you raise them, and a credit control service to handle the collection of unpaid invoices. This can create significant cost savings for your business as you don't need to employ credit control staff - or undertake the collections yourself.