GET PAID FAST / FACTORING
Freight factoring that pays this week, not next month
Brokers often pay in 30 to 60 days. Your fuel, insurance and truck payment don't wait. Freight factoring turns a delivered load into cash in a day or two. We connect you with our factoring partner for a quote, and we may be paid for the referral.
MONTHLY INVOICES
We refer carriers to a factoring partner and may be paid for referrals.
HOW IT WORKS
Trucking factoring in three steps
Every factoring company works on the same basic loop. The differences are in the fees, the speed and the fine print.
STEP 1
Deliver and send paperwork
Rate con, signed bill of lading and proof of delivery go to the factor.
STEP 2
Get the advance
Most of the invoice, usually within a day or two, by ACH or wire.
STEP 3
Get the rest
When the broker pays the factor, you get the reserve back minus the fee.
The full walk-through, with an example invoice, is in how factoring works.
THE MONTH VIEW
Where your money actually is
A carrier can have a great month on paper and an empty bank account. Each bar below is an example invoice: the amber dot is the day you deliver and invoice, the green dot is the day the money lands. Slide the broker terms and switch to factored to see the gap close, and what it costs.
- INVOICED THIS MONTH
- $16,330
- PAID BY MONTH END, BROKERS
- $0
- PAID BY MONTH END, FACTORED
- $15,514
- FACTORING FEES AT 3%
- $490
EXAMPLE: 95% ADVANCE, 3% FEE, FUNDED NEXT DAY. YOUR TERMS WILL DIFFER.
WHAT IT COSTS
Freight factoring services, priced plainly
Factoring fees typically run about 1% to 5% of each invoice, and most carriers land between 1.5% and 4%. Advances usually cover 70% to 95% of the invoice up front, and some programs advertise 100% with the fee taken out at funding.
Where you land depends on your monthly volume, your brokers' credit, recourse or non-recourse, and how fast you want the money. Same-day wires and other extras can add to the cost. Every fee, worked through on real numbers, is in factoring rates.
SOURCE: FreightWaves Checkpoint, UPDATED FEBRUARY 2026, CHECKED OCTOBER 2026.
- Advance at 90%
- $1,800
- Reserve held until broker pays
- $200
- Fee at 3%
- $60
- Reserve released, minus fee
- $140
WHO IT FITS
Factoring companies for trucking, by situation
Factoring helps different carriers for different reasons. Find yours.
Owner-operators
One truck, every dollar counts, fuel due before broker pay arrives.
New authorities
No payment history yet and startup costs everywhere.
Small fleets
Payroll for drivers due weekly while invoices wait a month.
Dry van and power only
High load counts and lots of accessorial receipts.
26 ft box trucks
Short, frequent loads and many small invoices.
Fuel-heavy runs
Long hauls where fuel at pickup is the pinch.
WHAT TO WATCH FOR
Read the contract before the rate
A low headline rate can hide a contract that costs more than a higher rate with clean terms. These are the lines carriers regret not reading.
- Long terms that renew automatically unless you cancel in a narrow window
- Monthly minimums that charge you when you factor less
- Early termination fees and slow release letters to your brokers
- Extra fees: ACH or wire charges, application fees, credit check fees
- All-invoice requirements when you only want to factor some loads
- Recourse terms that hand unpaid invoices back to you after a short window
Recourse vs non-recourse explained in non-recourse factoring. Comparing providers? See how to compare factoring companies.
FUNDED FAST
Paperwork that gets paid
Factors fund clean invoices fast and hold messy ones. The difference is almost always the paperwork you send with the invoice.
Send the signed rate confirmation, the bill of lading signed at pickup and the proof of delivery signed and dated by the receiver, all legible and complete. Make sure the load number, the rate and the broker name match across all three. Photos taken at an angle in a dark cab are the most common reason an invoice gets kicked back.
If anything changed after you signed the rate con, like an extra stop or a new delivery time, get the revised rate con before you invoice. A factor pays what the paperwork supports.
ACCESSORIALS
Detention and lumpers on the invoice
Detention, layover, lumper reimbursements and TONU fees are money you earned, and they can be factored with the load if the paperwork backs them up. That means the broker's approval in writing, a lumper receipt, or the detention terms on the rate con with your in and out times.
Many carriers lose accessorial money because the receipt never makes it to the invoice. When we dispatch your truck, we collect those documents with the load paperwork so they go to your factor with the invoice, not weeks later.
WHEN IT DOESN'T FIT
Factoring isn't for everyone
If your brokers pay in a week or two and you have enough cash to cover fuel and payments between invoices, the fee may cost more than the speed is worth. The same goes if most of your freight is with one shipper that pays fast.
Factoring makes the most sense when slow payment is the thing stopping you from taking the next load, covering a repair, or adding a truck. Our guide on whether factoring is worth it walks through the math.
NOAS AND SWITCHING
Changing factors without losing money
When you start factoring, each broker gets a Notice of Assignment telling them to pay the factor. When you leave, the old factor has to send a release so brokers pay you or your new factor instead.
The risk is the gap in between: an invoice paid to the wrong company and stuck there. Line up the release before the new factor sends its notices, check every open invoice, and confirm with each broker where the next payment goes.
ASK ANY FACTOR
Six questions before you sign
Put these to any factoring company, including the one we refer you to. Get the answers in writing.
What is my all-in fee?
The rate plus every per-invoice, ACH, wire and account fee, on a real invoice.
How much is advanced, and when?
Advance percentage, reserve, and the day the money lands.
Recourse or non-recourse?
And exactly what non-payment reasons the factor covers.
How long is the contract?
Term, renewal, notice period and any early exit fee.
Do I have to factor everything?
All invoices, all from a broker, or only the ones I choose.
How fast do you release me?
If I leave, how quickly brokers get your release letter.
ALL FACTORING GUIDES
Everything about getting paid
- Best Factoring Companies for Trucking (Compared)
- What Is Freight Factoring and How Does It Work?
- Is Freight Factoring Worth It? Pros, Cons and When You Need It
- Freight Factoring Rates and Fees (Cost Calculator)
- Factoring for Owner-Operators
- Factoring for New Trucking Companies (New MC)
- Factoring for Small Trucking Companies and Fleets
- Recourse vs Non-Recourse Freight Factoring
- Factoring with Fuel Advances and Fuel Cards
- Dispatch + Factoring: Loads Booked and Paid Fast
- Box Truck Factoring
- Dry Van and Power Only Factoring
- Same-Day Factoring (Get Paid in 24 Hours)
LOADS TO FACTOR
Factoring pays faster; dispatch keeps the invoices coming. We book the loads, every rate con goes to you to sign, and we send your Notice of Assignment with your carrier packets so brokers pay your factor from the first load. See dry van dispatch or dispatch and factoring together.
FACTORING QUESTIONS
Freight factoring companies, answered
We refer carriers to a factoring partner and may be paid for referrals.
01What is freight factoring?
Freight factoring is selling your unpaid load invoices to a factoring company. Instead of waiting 30 to 60 days for the broker to pay, the factor advances most of the invoice within a day or two, collects from the broker, then sends you the rest minus its fee.
02Is factoring a loan?
No. You are selling an invoice you already earned, not borrowing against your business. There is usually no debt on your books and approval depends more on your brokers' credit than on yours. That is why new carriers can often factor when a bank would turn them down.
03Do I need good credit to factor?
Usually not much. Factors care most about whether your customers, the brokers and shippers, pay their bills. Your own credit matters less, which is why factoring is common for new authorities. Some factors still check for tax liens or prior factoring disputes.
04What documents do I need to factor a load?
Usually the signed rate confirmation, the bill of lading signed at pickup, and the proof of delivery signed by the receiver. Some factors also want lumper or detention receipts with the invoice. Clean, complete paperwork is what gets you funded the same or next day.
05Can I factor only some loads?
With some factors, yes. Spot or selective factoring lets you choose which invoices to sell, often at a higher fee. Others want all invoices from a broker, or all invoices period, under the contract. Ask before you sign, because the difference matters when a broker already pays fast.
06What is a notice of assignment?
A notice of assignment, or NOA, is a letter telling each broker to pay the factoring company instead of you for the invoices it buys. Brokers need it on file before they will redirect payment. We send yours with your carrier packet if you dispatch with us.
07How fast does factoring pay?
Many factors fund the next business day by ACH once your paperwork is complete, and some offer same-day funding by wire, often for an extra fee. The biggest delay is usually missing or unclear paperwork, not the factor. A clean, signed proof of delivery is what speeds it up.
08Do I have to factor every load?
Depends on the contract. Some factors require all your invoices, some all invoices from approved brokers, and some let you pick load by load. If a few of your brokers already pay fast, choosing which loads to factor can save real money.
09Can I switch factoring companies?
Yes, but read your current contract first. Many have a term, a notice period and sometimes a fee to leave early, plus a release letter the old factor must send to your brokers. Plan the switch so no invoice gets paid to the wrong company.
NO OBLIGATION
See your factoring rate
Three short steps. our factoring partner contacts you with a quote, and you decide. We refer carriers to a factoring partner and may be paid for referrals.