Factoring rates
Lowest isn’t always the best value. Fees should be weighed with funding, fuel, and service.
What you should compare
Funding amount
Many programs fund 100% of the invoice less the factoring fee, while others use an advance and reserve structure. Compare how much you actually receive when the invoice is purchased.
Contract terms
Avoid costly surprises and long commitments. Read the holdbacks, reserves, and notice periods.
Customer service
You’ll work with them every week. A low rate isn’t a bargain if the service creates problems.
Fuel card programs
Discounts at the pump can outweigh a slightly higher factoring fee over a year of miles.
Funding speed
Same-day funding can be the difference between covering fuel and waiting on a broker.
How freight factoring works
- 01
You deliver the load and generate the invoice.
- 02
The factor purchases the invoice and funds you based on the program you choose — often the same day.
- 03
They collect from the broker or shipper.
- 04
If the program uses a reserve, you receive the remaining balance when the customer pays, less the agreed fee.
What is freight bill factoring?
You haul the load and invoice the broker or shipper. A factoring company buys that invoice and funds you based on the program you choose — often the same day. Many programs fund 100% of the invoice less the factoring fee, while others use an advance and reserve structure. The factor then collects payment from the customer. It is not a loan against your trucks — it is a sale of your receivables.
Recourse vs. non-recourse?
With recourse factoring, if the customer never pays, you may have to buy the invoice back. Non-recourse typically means the factor takes the credit risk of that customer, usually with conditions. I’ll explain which structure fits your freight and why.
Do you work with new authorities?
Yes. I help newly established trucking companies compare options and get approved quickly, and I stay on the call so you’re not handed to a script.
What does it cost to use a broker?
You pay the factoring company you choose. My job is to put the right program in front of you — not to add a second bill.
How I help
I compare multiple factoring companies to find the one that best fits your business — not simply the one advertising the lowest rate. From the first conversation through funding and beyond, you work directly with me.
New authority or considering a change: I’ll explain the differences and stay with you until money hits the account.
Also compare fuel cards →