Notice of assignment (NOA)

In practice

When you sign with a factoring company, it sends an NOA to every broker you haul for. The letter names you, names the factor, and tells the broker where to send payment from now on. Brokers file it in their system, so every invoice from your MC is paid to the factor, who has already advanced you most of it.

The legal force comes from the Uniform Commercial Code, which every state has adopted in some form: after a debtor (the broker) is notified that an account has been assigned, it discharges the debt only by paying the assignee (the factor).

Source: LII, UCC § 9-406, discharge of account debtor; notification of assignment · checked Oct 2026

Two practical points. First, an NOA usually covers all invoices from your MC to that broker, not just the ones you choose; spot factoring works differently. Second, your carrier packet should match it: if a broker has an NOA on file and you send an invoice with your own remittance address, expect a payment delay while they sort it out.

An NOA also matters at audit time. When an IFTA or IRP auditor matches revenue to miles, the factoring statements, not your bank deposits, show what each load paid; keep them with your records. See IFTA audits and IRP apportioned plates for what auditors ask for.

Want to compare factoring with a broker's quick pay on your own invoices? Use the quick pay vs factoring calculator. Our dispatch for owner-operators works with any factor: we send paperwork in the format your factor wants, so payments land where the NOA says. More terms are in the trucking money dictionary.