It combines the loaning, the risk insurance of having the bills paid, services of tracking and cashing liabilities alongside with their auditing control. In fact, for the transporters, factoring gives them the possibility to cash the equivalent value of the services much sooner than the usual term of 30 to 90 days.
In transportation, a factoring operation needs the confirmation of the purchaser - which may consist of, for example, signing and sealing the CMR consignment note. After that, the bill accompanying the transportation is liable to factoring, meaning sealed, cashable and demandable. As the agent becomes the owner of the liabilities, he is very much interested in getting the equivalent value of the bills from the recipient, so payment incidents are usually avoided.
