Back to Glossary

Advance Fee

A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
Y
Z

Shipping agents pay in advance on behalf of their customers for any costs incurred during the shipping process. Many freight forwarder companies add a certain percentage of depreciation or profits to these costs and pass them on to their customers. Sometimes advance fees are called credit limitations.