Factoring for Truckers: A Quick Guide

Factoring lets you sell your freight invoices to a factoring company for immediate payment instead of waiting 30 to 60 days for brokers to pay.

How it works

After you deliver, you submit the invoice and rate confirmation, and the factoring company advances most of the amount, typically 90 to 97%, often the same day. They collect from the broker and remit the rest minus their fee.

Is it worth it?

For carriers who need steady cash flow to cover fuel and expenses, factoring is invaluable. Pair it with broker credit checks, since factors prefer creditworthy brokers, to keep your advances flowing smoothly.