Factoring Service

What Is Freight Factoring?

Freight factoring helps trucking companies turn delivered-load invoices into working capital instead of waiting on broker terms. You submit your invoice + POD, receive an advance, then collect the reserve when the broker pays—minus agreed fees.

Why carriers use it

Reduce cash gaps from slow-pay terms
Keep fuel/repairs covered without scrambling
Stabilize weekly pay planning
Get help with collections and invoice status

What it’s not

Not “in-house factoring” through Freight Girlz
Not one-size-fits-all (terms vary by partner)
Not a replacement for clean paperwork

What You’ll Need Dispatch Services

Paperwork tip: Signed rate confirmation, correct reference numbers, and clear POD scans/photos help prevent funding delays (and can reduce “re-review” holds).

How Freight Factoring Works

A typical factoring flow (details and timing vary by partner).

Submit invoice + POD
Send your signed RC, invoice, and POD (BOL/POD scans) to the factoring partner.

Receive an advance
Often 80%–95% — frequently same-day or within ~24 hours (cutoffs vary).

Reserve is released
When the broker pays, you receive the reserve minus factoring fees and add-ons.

Pro tip: Funding speed is usually decided by (1) how clean your docs are, (2) submission time vs cutoff, and (3) broker verification steps.

Authority & documentation matters

Underwriting varies by partner. Many programs weigh broker payment history heavily, but your paperwork process still matters (carrier identity match, W-9, COI, and consistent invoice formatting).

You can verify MC/DOT status here: FMCSA Registration.

What tends to slow approvals

Name mismatch (carrier legal name vs invoice vs W-9)
Unreadable POD images or missing signatures
Rate confirmation missing accessorial approvals
Late submission (past daily cutoff) or incomplete attachments

Who Freight Factoring Helps Most

Owner-Operators

Cover fuel, tolls, maintenance, and home-time needs without waiting weeks.

Small Fleets

Keep payroll steady and handle multiple invoices without cash-flow crunches.

New Authorities

Stabilize cash flow while you build broker relationships and billing habits.

Leased-On Carriers

Support predictable weekly planning alongside dispatch/back-office workflows.

Reality check: Factoring isn’t “free money.” It’s a cash-flow tool. The goal is to keep your wheels turning while controlling fees and avoiding slow-pay surprises.

Key Benefits for Carriers

Same-/Next-Day Funding

Reduce cash-flow gaps and keep rolling (cutoffs vary).

Broker Credit Screening

Many partners provide broker credit insights before you haul.

Collections Tools

Status updates and collections workflows may be included.

Fuel Programs

Fuel card options and discounts may apply (program dependent).

What “faster pay” really protects

Fuel spikes and short-term cash shocks
Emergency repairs (tires, sensors, DEF, breakdowns)
Payroll stability for small fleets
Opportunity loads you’d otherwise skip

Best practices to keep fees low

Submit docs immediately after delivery
Use consistent invoice templates and naming
Avoid slow-pay broker patterns
Ask about wire/ACH/same-day add-ons before signing

Quick Pay vs Freight Factoring

Factor	Broker Quick Pay	Factoring (via Partner)
Scope	Broker-by-broker	One workflow across many brokers (agreement dependent)
Speed	Often faster than standard terms	Often same-day to 24h (cutoffs vary)
Fees	Varies by broker	Varies by partner and contract terms
Extras	Limited tools	May include credit checks + collections + portals

Quick Pay fee note: Many brokers charge a Quick Pay service fee — often around ~2% to 5% of the invoice amount, but it varies by broker and sometimes by lane/relationship. Always confirm the exact percentage and payout timing in writing before selecting Quick Pay.

Best fit depends on lanes, weekly volume, broker mix, and how quickly you submit clean paperwork.

Rates & Terms at a Glance

Item	Typical Range	Notes
Advance Rate	80% – 95%	Depends on volume, risk, broker mix, invoice aging, and recourse type.
Funding Speed	Same-day to 24h	Cutoff times and rails (ACH, wire, push-to-card) vary by partner.
Recourse Type	Recourse / Non-recourse	Non-recourse often costs more and coverage rules vary—read the contract.
Contract & Minimums	Month-to-month to 12+ mo	Some programs require minimum monthly volume or notice to exit.
Fees	~1% – 4%+	Watch for add-ons (wires, ACH, same-day, aging tiers, reserve timing).

Fee “gotchas” to ask about

Wire fees vs ACH fees vs same-day fees
Minimum monthly volume requirements
Invoice aging tiers (fee increases after X days)
Reserve release timing and conditions
Recourse buyback timelines and exceptions

Contract clarity checklist

Exit terms and notice period
Which brokers are eligible
Whether selective factoring is allowed
Who controls collections communication
Dispute handling and chargeback rules

Terms are set by the factoring partner and depend on lanes, volume, broker mix, and risk profile.

What You’ll Need to Get Started

Carrier Setup

Active MC/DOT authority (or lease-on arrangement)
W-9 and COI
Banking + contact details
Consistent invoice submission process

Clean Load Docs

Signed rate confirmation (RC)
Clear POD photos/scans and BOLs
Correct load/reference numbers
Detention/TONU documentation (if applicable)

Fastest path to funding: submit paperwork immediately after delivery with clean scans/photos, correct references, and matching carrier/broker names.

Freight Factoring Referral FAQs

Does Freight Girlz factor invoices in-house?

No. We can refer you to vetted third-party factoring partners, and you decide whether to proceed.

Is factoring a loan? Does it affect my credit?

Factoring is typically the sale of an invoice, not a loan. Underwriting varies—ask about credit checks and hard pulls.

What’s the difference between recourse and non-recourse?

Recourse may require buyback after a set period. Non-recourse can shift certain risks, but coverage rules vary—read the contract.

Can I factor only some brokers?

Depends on the agreement. Some programs are “all-in,” others allow selective factoring. Confirm before signing.

How fast can I get funded?

Many partners fund same-day if submitted before cutoff; otherwise within ~24 hours. Rails and fees vary.

Want dispatch + paperwork help too? Explore Truck Dispatch Services.

Get Connected to a Vetted Factoring Partner

Tell us your equipment type, lanes, and average weekly volume — we’ll point you to a partner that fits. Freight Girlz does not provide factoring in-house.

Get Factoring Referral Truck Dispatch Services

Referrals are optional. Final approvals and pricing come from the factoring company.

Explore Our Dispatch Services

Pick your equipment type, learn about dispatch options, or jump into the resources carriers use most.

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