Customers have access to all sorts of information and digital platforms to have full transparency when partnering with the best freight factoring companies. Transparency not only makes for happy customers, it also can improve efficiency within the company. This is not something that has to be a hard sell to the customer; rather, it’s better to set straightforward realistic expectations that can save time for more critical decision-making.
Radically Transparent Fee Structures Lead to Increased Efficiency
For some companies, the thought of giving customers access to information that may not show the company most positively has no benefits. When discussing the benefits and outcomes from transparent fees, Forbes states, “Potential clients respond well to straightforward talk about what we can and can’t do for them. Since we don’t over-promise, we’re less likely to underdeliver. The result? An industry-leading client retention rate and happy customers whose goals are met.” Customers want transparency and honesty. Having that complete open information about pricing and products will set up the company for more success and growth.
It Builds Trust With Your Customers
Transparency is critical for creating trust with customers and for a company’s overall success in sales and growth. The term implies operating effortlessly for the customers to see and verify the promised performed actions. For freight finance to be handled in any season and provide proper financial assistance, companies should remember simplicity, openness, communication, and accountability. Companies shy from practicing transparency internally, in turn causing hesitation to offer the same to their customers. Transparency allows for customers to have all the information needed to purposefully engage the company on provisions before the purchasing process.
Fee-Lite Solutions Make Cash Flow Management Easier
Factoring with a freight factoring company can provide benefits to shippers and carriers without the added stress of management. When explaining the benefits of freight or transportation factoring for shippers and carriers, Inbound Logistics says, “It's the classic win-win: Companies that buy a product or service get one month or more to pay, while sellers get their money in just a few days. Trading partners have used factoring, supply chain finance, and similar strategies for some time to maximize their cash flows. Today, though, advanced technologies are increasing the variety of available financing options.”
Integration Between Systems Makes Leveraging Freight Factoring Faster and More Effective
Freight Factoring companies have the tools and ability to use a variety of components and integrated technology to improve system processes with freight finance. Working with a centralized digital software program can eliminate the need for specific invoicing or tedious paperwork and remove the risk of human error. Integrated systems can allow for improved reporting of freight spending, and where data-driven decision-making may increase cost savings.
Factoring Offers Higher Advances Than Traditional Bank Accounts Too
Rather than having to go through a bank, freight factoring companies can qualify brokers for customers to perform credit checks. Bank loans are uncertain, often come with high interest rates, and take a longer lead time to process—which makes loans less than optimal options for capitalizing on time-sensitive business opportunities. Unfortunately, most small business owners may not meet the rigorous qualification criteria or business collateral needed for approval. Rather than stress over the bank for financing credit options, freight companies have more flexibility to ensure the needs can be met. The credit limit can be inflexible and unsuitable for financing spur-of-the-moment business opportunities. Factoring is an ideal alternative for all businesses, regardless of the creditworthiness or the availability of collateral.
It All Comes Together to Create In-Demand Solutions to Freight Factoring Like ComFreight’s HaulPay
The benefits of freight factoring and transparency can help any business by using ComFreight. Some businesses have the fear that transparent and straightforward discussions will lose customers, but we want to be as honest as possible with the solutions we provide. For a factoring company you can fully trust request a demo to see how the HaulPay platform, powered by ComFreight, works.