Freight Factoring Assistance — Get Paid Faster

Freight factoring is a financial arrangement where you sell your unpaid freight invoices to a factoring company at a discount. Instead of waiting 30-90 days for brokers to pay, you receive 90-97% of the invoice value within 24-48 hours. The factoring company then collects the full amount from the broker. It's not a loan — you're selling a receivable, so there's no debt on your books.

Factoring rates typically range from 1-5% per invoice, depending on the type. Recourse factoring (where you take the risk if the broker doesn't pay) runs 1-3%. Non-recourse factoring (the factor absorbs the risk) costs 3-5%. Some companies also charge setup fees, monthly minimums, or ACH transfer fees. We help you read the fine print so you know your true cost before signing.

Your personal credit score matters less with factoring than with a traditional loan. Factoring companies primarily evaluate the creditworthiness of your brokers and shippers — the ones who owe you money. That said, some factors check your background for liens, bankruptcies, or tax issues. New carriers with thin credit can usually get approved as long as they're hauling for creditworthy brokers.

With recourse factoring, if the broker doesn't pay the factoring company, you're on the hook to buy back the invoice. Rates are lower (1-3%) because you carry the risk. With non-recourse factoring, the factoring company absorbs the loss if the broker fails to pay — but rates are higher (3-5%) to cover that risk. Non-recourse typically only covers broker insolvency (bankruptcy), not payment disputes. We help carriers understand exactly what's covered before choosing.

Most factoring companies fund within 24-48 hours of receiving your invoice and POD. Some offer same-day funding for an additional fee. The initial advance is typically 90-97% of the invoice. You receive the remaining balance (minus the factoring fee) once the broker pays the factor in full — usually 30-45 days later. Electronic submissions and clean paperwork speed things up significantly.

No — we don't factor invoices ourselves. What we do is help you find the right factoring company for your situation, assist with the application and setup process, and support you with invoice submissions and broker credit checks. Think of us as your advocate in the factoring process. We know which companies have the best rates, the fairest contracts, and the fastest funding. Our factoring assistance service costs $120 — a one-time fee to get you set up properly.