- Freight factoring
- Freight factoring is selling your accounts receivable to a third party at a discount in exchange for being paid immediately.
Brokers commonly pay on terms measured in weeks, while fuel, drivers and repairs need paying now. Factoring bridges that gap.
The factor advances most of the invoice and charges a fee, so it is a trade of margin for cash flow rather than free money.
Rates and terms vary by factor and by your customer mix. Recourse and non-recourse arrangements allocate the risk of non-payment differently, which is worth understanding before signing.
Factoring is priced as a percentage of the invoice, and whether the agreement is recourse or non-recourse decides who absorbs the loss when a broker never pays.
The practical constraint is paperwork: funding is released against the signed proof of delivery and the rate confirmation, so an invoice missing either waits.
Software that handles this for you
Run your real loads through it before you decide anything.
- Free tier
- Up to 3 trucks, permanently
- After that
- $19 per truck, not per seat
- Included
- Every module, on every plan