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Commercial Banking

Three Reasons Transportation Factors Must Automate Operations

Danielle LaPaglia
May 1, 2024

Funding broker clients is challenging.

Working around common obstacles – everything from error-prone manual processes to communications breakdowns – can significantly impact efficiency, which in turn significantly impacts profitability. That’s where automation comes in.

Here are three common transportation factoring challenges solved by software for factoring automation.

1. Tedious Carrier Data Entry

Manually entering carrier details isn't just time-consuming – it can also lead to human error. From contact information and banking details to broker and carrier invoices, managing broker clients requires extensive data entry. This can have a bigger impact on your bottom line than you may think because your staff is spending valuable time fixing errors when they could be working leads.

The Solution: Automate Carrier Imports

The revolutionary Carrier Import feature on Jack Henry’s FactorSoft™ solution offers automation to seamlessly import carrier data and invoices into the system. By eliminating manual data entry with factoring software, your company can streamline operations, ensuring accuracy and freeing up valuable time and resources.

2.  Funding Carrier Payments on Time

Keeping track of payments issued to carriers poses a significant challenge – especially because of all the details that need to be tracked so you can know who to pay and when. With multiple payment methods and deadlines, the process can become convoluted and error-prone.

The Solution: Automate Carrier Payments

With a flexible factoring platform that lets your Operations Team efficiently manage payments, you can reduce administrative burden and ensure timely disbursements. FactorSoft's Carrier Payments module simplifies this process, offering a range of payment options, from quick pay via ACH to mailing checks to the carrier’s factoring company.

3. Communication Breakdowns with Carriers

Effective communication when issuing carrier remittances is crucial – yet often lacking. Without a clear remittance process, your factoring company may find itself inundated with inquiries from both brokers and carriers, leading to delays and confusion.

The Solution: Automate Carrier Communications

The FactorSoft Carrier Payments module facilitates transparent communication regarding payment status and remittance details. By automating notifications with factoring software, you can ensure carriers receive remittance information promptly. Then, remittance information can be sent back to you, fostering clear communication with your clients when it matters most.

FactorSoft's Carrier Payments module is a lifeline for transportation factoring companies grappling with finding ways to save time during day-to-day operations.

Are you ready to start automating your operations? Contact us to speak with a factoring expert.

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