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JAX Factoring

JAX Logistics LLC provides factoring services in Jacksonville, Florida, through JAX Factoring LLC. Factoring is an alternative means of investment for carriers interested in getting their businesses financed. Businesses factor their invoices when they sell them at a discount which provides capital back to the business. JAX Factors LLC makes factoring your freight bills easy with reliable and trusted service.

Factoring is not a loan and no debt is assumed through it. The funds are unrestricted, providing a company more flexibility than with a traditional bank loan. With JAX Factors as a factoring partner, you will be able to focus on running your business while we help manage your financing.

Factoring Overview

Factoring is a transaction in which a business sells its accounts receivable, or invoices, to a third-party commercial financial company, also known as a factor. This is done so that the business can receive cash more quickly than it would by waiting 30 to 60 days for a customer payment. Factoring is sometimes called accounts receivable financing.

The terms and nature of factoring can differ among various industries and financial services providers. Most factoring companies will purchase your invoices and advance you money within 24 hours. The advance rate can range from 80% to as much as 100% depending on the industry, your customers' credit histories, and other criteria.


An Example of Factoring

Located in Jacksonville, Florida, JAX Logistics LLC helps finance businesses with invoice factoring through JAX Factors LLC. The factoring process is better understood using an example. This fictional example illustrates a common factoring situation:

XYZ Trucking is a trucking company that wants to grow the size of its company and provide better service to its customers. XYZ's customers typically pay for the services within 30 days of purchase. However, that won't cover the immediate cash requirements for fuel, maintenance, equipment loans, and payroll. The owners of XYZ Trucking experience this issue every week. They struggle with the need for operating capital and the lack of available cash flow has hindered the company from growing.

XYZ turns to a factoring company, selling their customer's invoices in exchange for an 80-100% advance on the total amount within 24 hours. The influx of cash allows the company to meet its obligations and to grow by taking on new customers, as well. By practicing this invoice finance technique, they have built their business and expanded their customer network. In addition to providing XYZ with the means to afford their financial responsibilities, the factoring company has given them a way to generate new clients.


Learn About the Advantages of Factoring

There are several reasons why factoring is a valuable financial tool for many businesses. The key benefit is that factoring provides a quick boost to your cash flow.  JAX Factors provides cash on your accounts receivable within 24 hours. This can solve short-term cash flow issues and help fuel business growth. Factoring companies handle your customer collections, and may also evaluate your customers' credit and payment histories, as well as providing you with back-office support.


Boost Your Cash Flow Now

Factoring can be customized and managed so that it provides necessary capital when your company needs it. The financing does not show up on your balance sheet as debt. Factoring is based on the quality of your customers' credit, not your own credit or business history.

It provides a line of credit based on sales, not your company's net worth. Unlike a conventional loan, factoring has no limit to the amount of financing. It also aligns well with startup businesses that need immediate cash flow. The benefit of factoring is that, instead of waiting one to two months for a customer payment, you now have that cash in hand to operate and grow your business.

Businessman Holding Cash