How factoring works
Brokers often pay in 30–60 days. A factoring company buys your invoice and pays you within a day or two, minus a fee. Then the broker pays the factoring company instead of you.
What it costs
Factoring fees are commonly about 1–5% of the invoice. The rate depends on your volume, the brokers you haul for, and whether it's recourse or non-recourse.
Recourse vs non-recourse
- Recourse: cheaper, but if the broker doesn't pay, you owe the money back.
- Non-recourse: costs more, and the factor takes the loss if a broker goes out of business. Read what it actually covers, because many only cover broker bankruptcy.
Watch the contract
- Monthly minimums and long terms
- Extra fees: ACH, wire, invoice processing
- Hard-to-cancel contracts or exit fees
- Rules that say you must factor every load
Factoring with us
Run under our authority and factoring is included in your percentage, with pay in 1–2 days. On your own MC, we help you set up factoring with a company that fits your loads.
Dispatch from 4%, or run under our authority from 15%.
Quick answers
What is a good factoring rate?
Many owner-operators pay around 2–3%. Lower rates usually need more volume or recourse terms.
Do I need factoring?
If you can't wait 30–60 days for broker payments, factoring keeps cash coming for fuel and bills.
More guides: Loads with a new MC · Dispatch fees explained · Lease on vs own MC · How to choose a dispatcher · Box truck loads (no CDL) · Hotshot loads guide · Best load boards · Get your MC & DOT number · IFTA filing guide · Cargo van loads guide
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