AUSTIN,
Texas, Aug. 1, 2024 /PRNewswire/ -- 1st
Commercial Credit, LLC, in collaboration with its affiliate
Nationwide Commercial Credit, Inc. (NCC), is proud to introduce a
specialized Freight Broker Non-Recourse Factoring Program. This
program is designed to improve cash flow and ensure prompt payments
to carriers, providing a valuable financial solution with credit
protection for the freight brokerage industry.
Ensuring Financial Stability for Freight Brokers
Nationwide Commercial Credit offers freight
broker non-recourse factoring designed to optimize cash flow &
payables.
NCC's program provides comprehensive credit protection against
shipper insolvency and ensures payments to carriers for all
factored invoices. This protection is crucial for freight brokers
to safeguard against potential losses from shippers declaring
bankruptcy or failing to pay. By maintaining payables to carriers
within 30 days and meeting industry trade credit ratings, freight
brokers can sustain their financial health and operational
efficiency.
Enhancing Credibility and Growth
Freight brokers must demonstrate a consistent ability to pay
invoices on time to gain approval from carriers and factoring
companies. NCC supports brokers in building a reliable payment
history, which is vital for establishing trust and fostering strong
business relationships. With NCC's factoring facility, brokers can
confidently onboard new shippers, driving business growth and
credibility in the market.
Streamlined Digital Uploading for Efficient
Transactions
NCC offers a digital uploading system that simplifies the
funding request process. Freight brokers can submit detailed
information about carriers, including payment instructions and
terms, along with the shipper's invoice and relevant documents.
Once the shipper acknowledges the payable, NCC provides payment to
the carrier, facilitating smooth and efficient transactions.
Eligibility Criteria for Non-Recourse Factoring
To qualify for NCC's non-recourse factoring program, freight
brokers must meet the following requirements: (No-Startups with
Sales Under $50,000 a Month)
- Strong Creditworthy Shippers: Shippers must have robust
credit ratings and credit insurable.
- Established Business History: Brokers should have a
consistent operational history of at least six months using a
Transportation Management System.
- Clear Documentation: Complete documentation for each
load is required along with the invoice to shipper.
- Reasonable Payment Terms: Invoices to shippers should
have payment terms within industry standards (30-60 days).
- Minimum Volume Requirements: A minimum of $50,000 monthly is required.
- Absence of Disputes: Invoices to shippers must be free
of disputes or offsets.
- Compliance with Legal Requirements: Brokers must adhere
to all relevant legal and regulatory standards.
- Financial Stability: Brokers are required to demonstrate
financial stability, including positive equity on their balance
sheet and positive cash flow. Additionally, they must maintain a
cash reserve in their bank account of at least 15% of the
receivable value.
Overcoming Common Challenges in Freight Brokerage
Raul Esqueda, President of
Nationwide Commercial Credit, explains, "Factoring freight brokers
can be challenging for many factoring companies due to the
complexities involved in managing receivable and payable
liabilities to carriers. Freight brokers must also maintain
profitability and positive cash flow. Recent liquidations and
bankruptcies among freight brokers were often the result of
overleveraged debt and daily expenses surpassing revenue."
Nationwide Commercial Credit, Inc.'s Freight Broker Factoring
Program is designed to provide freight brokers with the financial
stability, credibility, and growth opportunities needed to thrive
in the dynamic freight industry. For more information call (800)
566-0794.
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SOURCE 1st Commercial Credit, LLC