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    3 Replies Latest reply on Mar 24, 2009 12:54 PM by JustRosey

    Why Would a Company Sell Its Freight Bills?

    alengore1 Newbie
      Hello friends,
      Suddenly I heard about freight factoring. And I search about it.
      than I found that company sell its freight bills.

      My question is that why would a company sell its freight bills?

      Any suggestions please?
        • Re: Why Would a Company Sell Its Freight Bills?
          LUCKIEST Guide
          Why Would a Company Sell Its Freight Bills

           

          A bill of lading is a document issued by a carrier, e.g. a ship's master or by a company's shipping department, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified.

           

          It is quite evident that a bill of lading can be used as a traded
          object.
          • Re: Why Would a Company Sell Its Freight Bills?
            bmt2008 Adventurer
            Factoring your receivables can be a great way to improve your cash flow. Why wait to get paid. Use that money now to get back out there are earn even more money. Plus, can save both time and expense as collections and risk falls on the factor - not you.

            Business Money Today
            • Re: Why Would a Company Sell Its Freight Bills?
              JustRosey Newbie
              Companies sell thier BOL ( bills of ladings) to factoring companies so they can free up cash. Some brokerages, and or shippers will wait and pay the carrier in 30 days, some will wait longer and of course, some won't pay at all. FEMA is famous for this. I arranged transportation for bottles of water during hurricane Katrina from Coca-Cola. The carriers all wanted $4 per mile, I negotiated the rate and set up the loads but FEMA waited forever to actually pay us for the service. We factored the BOL and recieved 90% of the rate so we could continue operations. Common practice in the transportation industry.

              JustRosey