Trucking factoring (also called freight factoring) is a financial solution specifically designed for the transportation industry. It helps trucking companies, owner-operators, and carriers get paid immediately for their loads instead of waiting 30-60 days for brokers and shippers to pay.
Why Trucking Companies Use Factoring
The trucking industry faces a unique cash flow challenge. You have constant expenses - fuel, maintenance, insurance, driver pay - but brokers often take 30, 45, or even 60+ days to pay. This creates a cash flow gap that can strangle your business.
- Fuel costs don't wait - you pay at the pump
- Drivers expect weekly or bi-weekly pay
- Truck payments and insurance are due monthly
- Maintenance and repairs happen unexpectedly
- Growth requires capital for new trucks and drivers
How Trucking Factoring Works
- 1You haul a load and generate a rate confirmation
- 2You submit the paperwork to your factoring company
- 3The factor verifies the load and broker/shipper credit
- 4You receive 90-97% of the invoice value - often same day
- 5The broker/shipper pays the factoring company at terms
- 6You receive the remaining balance minus a small fee (1.5-5%)
Tired of waiting for brokers to pay?
Get same-day funding for your loads.
Trucking Factoring Rates
Trucking factoring rates are among the lowest in the industry because freight invoices are considered low-risk. Typical rates range from 1.5% to 5% depending on:
- Your monthly factoring volume
- The creditworthiness of your brokers/shippers
- Whether you sign a contract or use spot factoring
- Additional services like fuel advances
Fuel Advances and Fuel Cards
Many trucking factoring companies offer fuel advances - getting money for fuel immediately after pickup, before you even deliver. This helps cover fuel costs for long hauls. Some factors also offer fuel card programs with discounts at major truck stops.
Recourse vs Non-Recourse Trucking Factoring
With recourse factoring, you're responsible if a broker doesn't pay. With non-recourse, the factoring company absorbs the loss if a broker goes bankrupt or refuses to pay due to insolvency. Non-recourse typically costs a bit more but provides peace of mind.
What You Need to Get Started
- Active MC and DOT numbers
- Proof of insurance (cargo and liability)
- Recent rate confirmations or invoices
- List of your regular brokers/shippers
- Voided business check for ACH payments
Ready to get paid faster?
Check your eligibility - takes just 2 minutes.
Choosing a Trucking Factoring Company
When evaluating factoring companies, consider:
- Funding speed - same day vs next day
- Rates and any hidden fees (ACH fees, invoice fees, etc.)
- Contract terms - long-term commitment vs spot factoring
- Fuel advance availability and terms
- Customer service and ease of submitting loads
- Reputation and reviews from other truckers
Get Started with Factoring Express
Factoring Express has been helping trucking companies get paid faster for over 15 years. With same-day funding, rates starting at 1.5%, no hidden fees, and fuel advances available, we're the partner your trucking business needs. Call 855-767-7771 or check your eligibility online in 2 minutes.