Trucking Factoring – Cash for the Transportation Industry
$10k to $10 Million
Same Day Funding
Competitive Advance Rates
No Hidden Fees
Fuel Card Program Available
Discounts for Veterans
Growth/Expansion Capital
We are ready to help: Contact Factoring Specialist, Chris Lehnes
Trucking Factoring – Cash Flow Solution for the Transportation Industry
Trucking factoring, also known as freight factoring, is a financial service that helps trucking companies maintain steady cash flow by selling their unpaid invoices to a factoring company at a discount. Instead of waiting 30, 60, or even 90 days for customer payments, trucking companies receive immediate funds to cover fuel, payroll, maintenance, and other operational expenses.
How Trucking Factoring Works
- Deliver the Load – The trucking company completes a delivery and submits an invoice to the broker or shipper.
- Sell the Invoice – The company sells the invoice to a factoring company at a small fee (usually 1-5%).
- Get Paid Fast – The factoring company advances up to 95% of the invoice value within 24 hours.
- Customer Pays Later – When the customer pays the invoice (30-90 days later), the factoring company releases the remaining balance, minus fees.
Benefits of Trucking Factoring
✔ Immediate Cash Flow – Get paid quickly instead of waiting for slow-paying customers.
✔ Fuel & Expense Coverage – Use funds for fuel, repairs, insurance, and payroll.
✔ No Debt Incurred – Factoring is not a loan, so there’s no debt or credit risk.
✔ Easier Approval – Approval is based on customer creditworthiness, not yours.
✔ Back-Office Support – Many factoring companies handle collections and invoicing.
Types of Trucking Factoring
- Recourse Factoring – The trucking company is responsible for unpaid invoices if the customer defaults.
- Non-Recourse Factoring – The factoring company assumes the risk of non-payment (usually at a higher fee).
- Spot Factoring – Factoring one invoice at a time, offering flexibility.
- Contract Factoring – Ongoing agreement to factor all invoices for a set period.
Who Can Benefit?
- Owner-operators
- Small and mid-sized trucking companies
- Freight brokers
- Large fleets looking for consistent cash flow
Choosing the Right Factoring Company
Look for a factoring provider that offers:
✅ Competitive advance rates and low fees
✅ Fast funding (same-day or next-day payments)
✅ Fuel card programs and discounts
✅ No long-term contracts (unless preferred)
✅ Excellent customer support
Trucking factoring is a powerful tool to keep operations running smoothly and ensure trucking companies get paid on time. Whether you’re an independent driver or managing a fleet, factoring can provide the cash flow you need to stay on the road. 🚛💰