Factoring
Freight factoring for brand-new trucking carriers.
The single biggest reason new authorities go under in year one isn't bad loads — it's waiting 30–45 days on broker checks while fuel, insurance, and the truck note keep coming. Factoring fixes that. I'll match you with a factor that actually fits a one-truck operation, not the one with the loudest sales rep.
What I look for in a factor
- Same-day or next-day funding on clean invoices. Anything slower defeats the point.
- Honest rate, no buried fees. ACH fees, monthly minimums, and "rebate" structures can quietly double the real cost.
- Real broker credit-check tools. Stops you from hauling for a broker who's about to disappear.
- Month-to-month terms. No 1-year lock-ins with cancellation fees.
- A human you can call. When a broker disputes a load at 6pm on a Friday, voicemail doesn't help.
Common questions
Why do new carriers need factoring?
Most brokers pay on Net 30 or Net 45. Fuel, insurance, and the truck payment don't wait that long. Factoring turns a load you delivered today into money in your account tomorrow.
What does it actually cost?
Most factors charge between 1.5% and 4% per invoice depending on volume, recourse vs non-recourse, and how risky the broker is. For a single-truck operation I usually steer people away from anyone quoting above 3.5% on standard freight.
Recourse or non-recourse — which one?
Non-recourse sounds safer but only covers broker bankruptcy, not slow-pay or disputed loads. For a new authority running good brokers, recourse with a solid credit-check tool is usually cheaper and just as safe.
Will I get locked into a long contract?
I only refer factors with month-to-month or short minimum terms. Long lock-in contracts with monthly minimums are how new carriers get burned.