Definition
Factoring of trucking freight bills, usually with same-day funding after delivery.
Why it matters
It's the most common financing for owner-operators and small fleets.
Where it shows up in a deal
A carrier uploads the signed BOL, the rate confirmation and the invoice, usually from a phone, and funding follows the same business day if the file is complete and inside the cut-off. Pricing is a flat percentage of the load rather than a rate per 30 days, because the cash problem is measured in hours.
What it affects
- Under a flat-fee structure the advance and the fee account for the whole load, with no reserve to wait for.
- Broker credit limits, not your own credit, decide which loads can be funded.
- Accessorials fund cleanly only when documented the way the rate confirmation requires.
- An incomplete file - unsigned BOL, missing rate confirmation - costs you the same-day cut-off, not the funding.
A worked example
An $1,850 load factored at a 96% advance on a flat 4% fee: $1,776 is funded the day the signed BOL is uploaded and the fee is $74. Together they account for the full $1,850, so nothing is held back pending the broker's payment.
The common mistake
Related terms
- Rate ConfirmationA document from a freight broker confirming load details and agreed pay.
- Bill of LadingA shipping document that lists goods, origin and destination and serves as a receipt for freight.
- Fuel AdvanceA cash advance issued at load pickup to cover fuel before delivery.
- Broker Credit CheckA review of a freight broker's payment history and credit before hauling a load.
Questions about how freight factoring affects your facility?
Call (929) 658-8087 or request a written quote — no obligation, no credit impact.
