Definition
A document from a freight broker confirming load details and agreed pay.
Why it matters
Required alongside the BOL for freight factoring.
Where it shows up in a deal
The broker emails the rate confirmation once a load is booked, and the carrier uploads it with the signed BOL and the invoice. It names the broker entity responsible for payment, which is the entity the factor's credit approval attaches to, and it sets out what accessorials will and will not be paid.
What it affects
- The load value funded is the rate confirmation value, so an amended rate con has to be submitted too.
- Detention, layover, lumper and TONU charges fund cleanly only when documented as the rate con requires.
- The broker named on the rate con must be the broker that was credit-approved before dispatch.
- Terms on the rate con govern claims and deductions, and they are the broker's terms, not yours.
A worked example
A rate confirmation for $2,850 is funded, and the broker later remits $2,600 after a $250 late-delivery deduction. The $250 shortfall is recovered from your reserve or netted against your next load.
The common mistake
Related terms
- Bill of LadingA shipping document that lists goods, origin and destination and serves as a receipt for freight.
- Freight FactoringFactoring of trucking freight bills, usually with same-day funding after delivery.
- Broker Credit CheckA review of a freight broker's payment history and credit before hauling a load.
- VerificationThe process of confirming an invoice with the customer before funding.
Questions about how rate confirmation affects your facility?
Call (929) 658-8087 or request a written quote — no obligation, no credit impact.
