Haul the Load Today Without Waiting Weeks to Get Paid

Freight factoring is invoice factoring built for trucking. Owner-operators and small fleets deliver loads today but commonly wait 30 to 60 days for brokers and shippers to pay -- while fuel, insurance, maintenance, and driver pay cannot wait. With factoring, you submit the rate confirmation and signed bill of lading or proof of delivery after each haul, and the factoring company advances most of the invoice value, often 90 percent or more, then collects from the broker or shipper directly. Freight factoring also comes with features tailored to life on the road. Fuel advances are common: many factors will advance a portion of the load value -- often 40 to 50 percent -- at pickup, so you can fuel the truck before the load is even delivered. Most freight factoring companies also provide broker credit checks, letting you verify the payment history of a broker before you accept a load and avoid the slow-pay and no-pay operations that sink small carriers. Both recourse and non-recourse programs are widely available in trucking. Non-recourse factoring, where the factor absorbs the loss if an approved broker fails to pay for credit reasons, is popular with owner-operators who cannot absorb a large unpaid invoice, though it carries a somewhat higher fee. Fees in freight factoring are commonly quoted as a flat percentage per invoice, typically in the 1 to 5 percent range depending on volume and program type. For a carrier running on thin margins, converting every delivered load into predictable cash within days can be the difference between growing a fleet and parking a truck.