Freight factoring
Freight factoring for drivers who used to get paid every Friday
On a company truck, the paycheck came every week no matter when the shipper paid. On your own authority, you deliver the load and the broker pays in 30 to 60 days. Fuel, insurance and your truck note don't wait that long. Freight factoring closes that gap: you sell the invoice, get most of it within a day or two, and the factoring company collects from the broker.
This page explains how trucking factoring services work, what they really cost, and what to check before you sign with a factoring company for trucking. Freight factoring companies differ far more in their contracts than in their headline rates. When you're ready, we'll pass your details to our factoring partner for a quote.
How much do you invoice a month?
We refer carriers to a factoring partner and may be paid for referrals. Disclosure
Freight factoring in three steps
- 01
Deliver and send the paperwork
After delivery, you upload the rate confirmation, the signed bill of lading or proof of delivery, and your invoice to the factoring company.
- 02
Get the advance
The factor checks the paperwork and the broker, then advances most of the invoice, often within 24 to 48 hours and sometimes the same day.
- 03
The factor collects
The broker pays the factoring company on its normal terms. The factor keeps its fee and releases any reserve to you.
Most delays come from paperwork, not the factor. The documents, the notice of assignment and the reserve are covered step by step in what factoring in trucking is and how it works.
Who factoring usually fits
- New carriers without savings to float 30 to 60 days of fuel and insurance. See factoring for a new MC.
- Owner-operators hauling for many brokers, who'd rather not chase each one for payment, or worry about one going broke. See non-recourse factoring.
- Growing fleets whose payroll and fuel bills grow faster than broker payments arrive. See factoring for fleets.
- Drivers used to a company fuel card who now need cash at the pump. See fuel cards and fuel advances.
Using our dispatch desk too? Here's how dispatch and factoring work together.
Who may not need it
- Carriers with a cash cushion that covers two months of costs.
- Drivers working mostly with a few brokers who pay fast or offer cheap quick pay. If only one or two are slow, spot factoring may be enough.
- Anyone whose margins are so thin that a few percent per invoice turns loads into losses.
Not sure which side you're on? Read is factoring worth it.
One invoice, two ways to get paid
A company paycheck hides the gap between when you work and when the customer pays. Running your own truck shows it to you. The timeline below follows one EXAMPLE invoice down two paths: wait for the broker's terms, or factor it and get most of the money the next business day.
Move the sliders to your own invoice, the fee you've been quoted, the advance rate and how long your brokers take to pay. Watch what the reserve does, and how much the fee costs against the days of waiting it saves.
Wait for the broker
Factor it
- Paid on day
- 45
- Fee
- $0
- You receive
- $2,500
Full amount, if the broker pays on time and in full.
- Advance on day 1
- $2,250
- Fee 3%
- −$75
- Reserve on day 45
- $175
- You receive in total
- $2,425
Fee and reserve terms differ by company. Some advance close to 100% with no reserve.
Factoring vs broker quick pay
Many brokers offer quick pay: they pay your invoice early in exchange for a fee taken out of it. It's a fair option for an occasional load. The difference is who controls it and how far it reaches.
| Question | Broker quick pay | Factoring |
|---|---|---|
| Typical fee | 1-5% | 1.5% to 4%, most 2% to 3% |
| How fast | 1 to 7 days | Often 24 to 48 hours, sometimes same day |
| Works with | Only that broker | Every approved broker you haul for |
| Contract | Usually none, per load | Varies: none to 12 months or more |
| Extra services | None | Broker credit checks and collections, often fuel cards |
Source: RTS, The Difference Between Factoring and Quick Pay (Oct 2022) · checked Oct 2026
Source: AtoB, Freight Factoring guide (updated May 8, 2026) · checked Oct 2026
Quick pay makes sense when you work with one or two brokers and only need speed now and then. Factoring makes sense when cash is tight across many brokers, or when you'd rather have someone else check broker credit and chase late payments.
What to read before you sign with a freight factoring company
The headline rate is the easy part to compare. The contract is where factoring companies for trucking really differ. Read these terms in the agreement itself, not the brochure.
Contract length and auto-renewal
A 12-month term that renews itself unless you give notice in a narrow window can lock you in longer than you planned.
Termination fees and buyouts
Leaving early can cost a fee, and switching may require the new factor to buy out your open invoices.
Monthly minimums
Some contracts charge you if you factor less than a set dollar amount, which hurts in a slow month or a week off.
Recourse terms
With recourse, you owe the money back if a broker doesn't pay within a set period. Know how long that period is and what non-recourse really covers.
Extra fees
Same-day funding, ACH or wire, invoice processing, credit checks, mailing and late charges can push a quoted rate well above its headline.
Whole-ledger requirements
Some factors require every invoice from every broker. If you only want to factor slow payers, make sure the contract allows it.
A lot of what drivers hear about factoring is half true. We sort the common claims in trucking factoring myths, and compare how factoring companies stack up on these terms in the best factoring companies for trucking.
Freight factoring by carrier and by option
The basics are the same for everyone: sell a delivered invoice, get most of it now, the rest when the broker pays. What changes is which terms matter, and that depends on where your business is. Start with the row that sounds like you.
One truck, your own authority
Minimums and flat fees hit a small invoice count hardest, and an app you can use from the cab saves the most time. See owner operator factoring for a quote checklist.
A brand-new MC
Factors judge your brokers more than your history, so a new authority can factor from the first load. Getting that first invoice right is the hard part: factoring for new trucking companies.
Two or more trucks with payroll
Volume can earn a lower rate, and next-day advances let each truck pay its own driver. Agreement terms change as you grow: factoring for trucking fleets.
Worried about a broker going broke
Non-recourse moves that one risk to the factor for a higher fee, but disputes and short pays stay with you. Read the clause first: non recourse factoring.
Short on fuel money at pickup
Some factors advance part of a load before delivery or add a fuel card with network discounts. See factoring companies with fuel cards.
Only one or two slow brokers
You may not need to factor everything. Choosing invoices one at a time costs more per invoice and less per month: spot factoring.
What factoring costs, in short
No government agency publishes factoring fees, so we use named industry sources and date them. One widely read guide, updated in May 2026, puts typical rates at 1.5% to 4% of each invoice, with most carriers paying 2% to 3%. It reports recourse factoring at about 1-3% and non-recourse at 3-5% or more, with advances of 80-95% of the invoice.
Source: AtoB, Freight Factoring guide (updated May 8, 2026) · checked Oct 2026
Flat vs tiered pricing, hidden fees and a per-load calculator are on freight factoring rates and fees.
Our partner: RTS Financial
RTS advances more than 90 percent of the invoice within 24 hours, with same-day funding through its app. RTS does not publish a fee percentage; rates depend on underwriting.
Source: RTS freight factoring page · checked Oct 2026
We refer carriers to RTS Financial and may be paid for referrals. It doesn't change your rate. Not financial advice: compare offers and read the agreement.
Want real numbers for your invoices?
We refer carriers to a factoring partner and may be paid for referrals. Disclosure
Trucking factoring questions
Need loads as well as fast pay?
Our dispatchers book loads for owner-operators and small fleets, and put your notice of assignment in every packet so brokers pay your factor. You approve every load.
Dispatch for owner-operatorsCan I use a dispatcher and factoring together?
Yes, and they fit well. The dispatcher books the load and the broker pays the factoring company, so your notice of assignment has to be in every carrier packet from the start. We include it in each packet we send. You still sign every rate con yourself, and the factor pays you.
Do I need good credit to factor?
Usually your own credit matters less than your customers'. A factoring company is buying invoices owed by brokers and shippers, so it checks their payment history and credit. That's why new carriers with thin credit often qualify. Liens, unpaid taxes or legal judgments can still complicate approval.
What is a notice of assignment?
A letter that tells a broker to pay the factoring company instead of you. It's the reason a broker sends payment to the right place. Once it's on file with a broker, paying you directly can mean the broker owes the money twice, so they take it seriously.
How much does trucking factoring cost?
Most carriers pay a percentage of each invoice. One industry guide, updated in May 2026, puts typical rates at 1.5% to 4%, with most carriers between 2% and 3%. Volume, broker credit, recourse terms and extra service fees change your real cost.
Can I switch factoring companies?
Yes, but read your contract first. You may owe notice, a termination fee or a buyout of open invoices, and you'll need a release letter from the old company so brokers stop paying them. Then a new notice of assignment goes to every broker you work with.
Can I factor only some loads?
With some companies, yes. Spot or selective factoring lets you pick which invoices to sell, usually slow-paying brokers. Others require you to factor everything from a broker, or all your invoices, for the length of the contract. Ask before you sign.
We refer carriers to a factoring partner and may be paid for referrals.