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David McGill explains the factoring process in the trucking industry. After delivering a load to a broker, you need to send necessary paperwork such as proof of delivery and lumper receipts to the broker for payment. Payment terms usually range from 30 to 90 days. Factoring helps small businesses to get paid quicker by selling their invoices to a factoring company at a discount. This allows businesses to receive immediate cash flow instead of waiting for payment from brokers.
