Advance against shipper invoices to keep carriers paid and operations funded.
Third-party logistics providers, freight brokers, and warehousing operators invoice shippers and manufacturers on net-30 to net-60 terms. Operating costs, warehouse leases, carrier payments, and technology run on shorter cycles. Factoring against the shipper's invoice funds the operation through the gap.
Carrier payments settle within days; shipper invoices clear in 30 to 60. A 3PL that books a carrier typically pays that carrier within days of delivery. The shipper invoiced for the same service pays on 30- to 60-day terms. The operator carries the difference on each load.
Facility and fleet costs operate on a fixed monthly schedule. Lease payments, insurance, equipment, and labor are due monthly regardless of invoice collection timing. Fixed costs continue on their own schedule.
Client onboarding increases capital requirements before the first collection. Onboarding a new shipper involves fronting carrier costs and allocating warehouse capacity before the first invoice from that client is collected.
3PLs, freight brokers, warehousing and fulfillment operators invoicing commercial shippers. Annual revenue $300K to $20M+.
- ·AR aging report
- ·Sample invoices and rate confirmations
- ·Carrier payment records (if brokering freight)
- ·Voided check for ACH funding
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Advance against shipper invoices so the logistics operator can pay carriers, cover warehouse costs, and onboard new clients without waiting on net-60.
- 02
The desk monitors the receivable and tracks payment, keeping the operator's shipper relationships clean. The operator retains responsibility for collection.
- 03
Facility scales with volume, so seasonal peaks and new client onboarding don't require separate credit applications.