DOCK 01FACTORING
Freight factoring: get paid for the load this week, not next month
You delivered the load. The broker pays in 30 days, maybe more. Fuel, insurance and the truck payment do not wait. Freight factoring turns that unpaid invoice into cash now, for a fee. Here is how it works, what it really costs, and how to get a quote.
DOCK 02CASH TIMELINE
Freight bill factoring in one picture: 30 days vs today
Put in one of your invoices. The top line is the wait for the broker. The lower line shows the same invoice factored: an advance now, the rest (the reserve) when the broker pays, minus the fee.
TRACK A: WAIT FOR THE BROKER
Nothing in your account for 30 days. You cover fuel, insurance and payments in the meantime.
TRACK B: FACTOR THE INVOICE
- CASH NOW (ADVANCE)
- $2,250
- RESERVE, WHEN BROKER PAYS
- $175
- FACTORING FEE
- $75
Your numbers only. Real advance rates, fees, reserves and funding times are set in the factoring company's quote.
DOCK 03HOW IT WORKS
How trucking invoice factoring works
- 1
Deliver and send the paperwork
After delivery, you send the factoring company the rate confirmation, the signed bill of lading or proof of delivery, and your invoice.
- 2
Get the advance
The factor checks the paperwork and the broker's credit, then pays you the advance: most of the invoice, minus its fee in many setups.
- 3
The broker pays the factor
Your Notice of Assignment tells the broker to pay the factoring company. When it does, the factor releases any reserve it held back.
DOCUMENTS FOR EVERY LOAD YOU FACTOR
- Rate confirmation
- The agreed rate and terms with the broker
- Signed BOL or POD
- Proof the load was delivered, signed by the receiver
- Invoice
- Your bill to the broker, often created by the factor's app
- Notice of Assignment
- Sent once to each broker so payment goes to the factor
DOCK 04WHAT IT COSTS
What trucking factoring services cost
Factoring is priced as a percentage of each invoice. Published industry figures put advance rates at about 70% to 95% of the invoice and fees commonly at 1.5% to 4%, within a wider range of about 1% to 5%. Where you land depends on your volume, your brokers' credit, recourse or non-recourse, and how fast your brokers pay.
SOURCE:FreightWaves (updated Feb 26, 2026), OCT 2026
Flat rate
One percentage per invoice, no matter how long the broker takes. Easy to compare and budget.
Tiered rate
The fee grows the longer the invoice stays unpaid, for example a base rate for 30 days and more after that. Cheaper when brokers pay fast, dearer when they do not.
What to watch in a freight factoring contract
- Monthly minimums
- A volume you must factor each month, or pay a fee for missing it.
- Long terms and exit fees
- Twelve months or more, with a fee or notice period to leave.
- Factoring every invoice
- Some contracts require all your invoices, not just the ones you choose.
- Reserves
- How much is held back, and how fast it comes back after the broker pays.
- Extra fees
- Wire, ACH, application, credit check or invoice fees on top of the percentage.
- Recourse
- Who takes the loss if a broker never pays. With recourse, you buy the invoice back.
Factoring rates and fees, with a calculator · Recourse vs non-recourse
Invoice factoring for trucking vs a loan or line of credit
| FACTORING | LOAN | LINE OF CREDIT | |
|---|---|---|---|
| What you get | Cash for invoices you already earned | Borrowed money you repay with interest | Borrowed money up to a limit, drawn as needed |
| What they check | Mostly your brokers' credit | Your credit, revenue and time in business | Your credit, revenue and often collateral |
| Grows with you | Yes, more loads means more to factor | No, fixed amount | Only if the limit is raised |
| Cost | A percentage of each invoice | Interest and fees over the term | Interest on what you draw, plus fees |
| Debt on the books | No loan balance | Yes | Yes, while drawn |
Banks and lenders set their own terms; this compares how each product generally works, not specific offers.
DOCK 05WHO IT FITS
Who factoring for trucking companies fits
- Owner operators
One truck, steady bills, and no cushion for a 30-day wait.
- New MCs
No business credit history yet. Factors look mostly at your brokers' credit.
- Small fleets
More trucks, more invoices, and payroll that comes before broker payments.
- Box trucks
Smaller invoices and many brokers. Minimums and per-invoice fees matter more.
Factoring is not for everyone. If you have cash to cover 30 to 60 days of costs, or your brokers pay quickly, the fee may cost more than the wait. Our guide on whether factoring is worth it walks through that math. Is factoring worth it?
Choosing between freight factoring companies
Freight factoring companies range from large national firms to small regional ones, and many offer some mix of advances, fuel cards, credit checks on brokers and an app for sending paperwork. The headline rate is only part of the comparison.
Compare a factoring company trucking carriers can actually leave: no long term or exit fee, no monthly minimum, and the right to choose which invoices you factor. Then compare the full cost on a normal month of your own invoices, including every fee on the schedule as well as the percentage. Ask how fast funding arrives after you submit, and in writing.
Factoring companies compared, with questions to ask
Dispatch and factoring together
Factoring gets you paid faster. Dispatch gets you better loads to factor. They work side by side: your dispatcher books the load and sends the paperwork, the factor pays you. You can use either without the other.
Apply for dispatch · Box truck dispatch · Dispatch and factoring
Our factoring partner: RTS
We refer carriers who want factoring to RTS. Here is what RTS says it offers on its own site:
- more than 90% of the invoice within 24 hours
- same-day invoice payment
- broker credit checks to see who pays and who does not
- the RTS App for uploading invoices
- fuel savings at 4,000+ truck stops
- 40+ years in business
RTS does not publish one rate for everyone: final rates are set after RTS reviews your business (underwriting). Your quote shows your rate, advance and terms before you sign anything.
SOURCE:RTS, freight factoring page (partner's own claims), OCT 2026
DOCK 06GUIDES
Every factoring guide
- Best Factoring Companies for Trucking
- What Is Freight Factoring and How It Works
- Is Freight Factoring Worth It?
- Freight Factoring Rates and Fees
- Factoring for Owner-Operators
- Factoring for New Trucking Companies
- Factoring for Small Trucking Companies and Fleets
- Recourse vs Non-Recourse Freight Factoring
- Factoring with Fuel Advances and Fuel Cards
- Dispatch + Factoring
- Box Truck Factoring
- Same-Day Factoring
DOCK 07FAQ
Factoring questions
Q-01What is freight factoring?
It is selling your unpaid freight invoices to a factoring company for cash now. The factor pays you most of the invoice right away, collects from the broker or shipper, then pays you the rest minus its fee. It replaces a 30 to 60 day wait with cash within days.
Q-02How much does trucking factoring cost?
Usually a percentage of each invoice. Published industry figures put fees commonly at 1.5% to 4%, with a wider range of about 1% to 5%. Your rate depends on volume, your brokers' credit, recourse terms and how fast brokers pay. Check the full fee schedule, not only the percentage.
Q-03How fast do I get paid?
That is set by the factoring company and the payment method. Many factors advertise same-day or next-day funding once your paperwork is approved. The clock starts when you send a complete, readable rate con, signed BOL and invoice, so clean paperwork is the biggest thing you control. Get the funding time in writing.
Q-04Do I need good credit to factor?
Usually not. A freight factoring company is buying an invoice that your broker or shipper will pay, so it looks mainly at their credit and payment history, not yours. A new authority with no business credit can often factor, as long as its brokers are approved by the factor.
Q-05Is factoring a loan?
No. With factoring, you sell an invoice you have already earned; there is no loan balance and no monthly loan payment. Under a recourse agreement, though, you may have to buy back an invoice the broker never pays, so read who carries that risk before you sign.
Q-06Can I factor only some loads?
With some factoring companies, yes. This is called spot or selective factoring. Others require you to factor every invoice from approved brokers. If you want to choose load by load, ask for it before you sign, and get it in the agreement.
Q-07Can I use a dispatcher and factoring together?
Yes. The dispatcher books the loads and handles the brokers; the factoring company pays your invoices early. Your Notice of Assignment goes in each broker packet so payment goes to the factor. Our dispatch service works with your factoring company or without one.
See what factoring would cost you
Tell us your monthly invoices. RTS sends the quote.
We refer carriers to RTS and may be paid for referrals. Rates and terms come from the factoring company, not from us.