Factory is spending more on the fright charges

Any factory needs more vehicles to send and receive the goods. Generally all the factories are producing some goods; all these goods reach to the buyers. Only after receiving the goods the buyers are buying in their own paying mode. In all the purchases the buyers are fixing time to pay for their received products. … Continue reading “Factory is spending more on the fright charges”

Any factory needs more vehicles to send and receive the goods. Generally all the factories are producing some goods; all these goods reach to the buyers. Only after receiving the goods the buyers are buying in their own paying mode. In all the purchases the buyers are fixing time to pay for their received products. Normally a buyer is paying to the seller only after one year time. The reason is the buyer is keeping the stock for the one complete year. When the customers are buying all the goods during this year, then at this time, buyer is checking his profit and paying the money to the seller. The seller is normally waits for the long time to receive his money. In the general trading the buyer is buying with the cash and seller is receiving the cash immediately. But in the mass business the seller and buyer is entering into the contract. The contract would be clearly mentioned about the deals. The buyer would agree to pay to the seller within one year time, the buyer at times pay some advance money to the seller. This is normally done in the mass business. And that is the reason freight bill factoring is required. The agency would check the buyer capacity and pay to the seller on the spot and collect the money from the seller after one year term. This is encouraging the business, because there is no tension in the business about the money.

 

The money is paid by the agency and the agency is collecting the money with the small interest amount. The interest rate would be payable by the seller and that is the reason all the sellers are connected with an agency which pays the amount well in advance to the seller. The seller is concentrating on his business promotions and he procures more orders for his business and the agency is once again checking the entire buyer’s capacity and paying to the seller immediately. The entire vehicle owner gets paid by the agency, so there is not any issue regarding the payment to the factory.  The bills must have to be settled immediately, of course the owner of the business is not caring about the settlement of the bills because he has the mediating person to pay all to the bills, in this connection the factory can even pays the salary to the workers easily because of the mediating person who helps the business to run with the profit latter days.