Cash control
Cash Flow & Factoring Strategy
A carrier's cash position is determined by booked loads, packet readiness, customer payment lag, factoring cost, payroll, fuel cards, and fixed obligations. BOF connects those facts before cash gets stuck.
13-Week Cash Flow Model
| Forecast Input | Source Record | BOF Use |
|---|---|---|
| Projected load revenue | TMS pipeline and delivery dates | Forecast receipts by expected invoice readiness. |
| Payment lag | Factoring, quick-pay, broker, shipper terms | Apply customer-specific cash timing. |
| Fixed obligations | Fuel card, payroll, settlements, insurance, equipment | Show weeks where cash position tightens before it breaks. |
| Concentration risk | Customer and lane exposure | Flag weeks where one customer carries too much receipt risk. |
Path Out of Factoring
Factoring can be useful, but it becomes expensive when it is treated as normal operating cash. BOF shows packet speed, AR quality, collection lag, fee burden, and working-capital readiness so a fleet can evaluate alternatives from a position of control.
- Make packet speed measurable. POD, BOL, accessorials, rate confirmation, and claim context show when the payment clock starts.
- Separate customer behavior. Direct shipper, broker, quick-pay, and factored receivables are not the same cash signal.
- Track factoring cost. Fees become visible by load, customer, month, and annualized impact.
- Evaluate alternatives. Line of credit, selective invoice discounting, quick-pay, or reserve strategy can be compared.
Packet standardBOF-POL-006 - Billing Packet Requirements
Billing speed is the most controllable input to cash flow because the payment clock starts only when packet evidence is complete.
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