Line 01 / Freight factoring
Freight factoring, priced like the cost it is
You already count fuel, insurance and the truck note per mile. Factoring belongs on the same receipt: it is the price of getting paid now instead of in 30 days. Sometimes that price is worth paying many times over. Sometimes it is money off every load for speed you don't need. This page helps you tell which.
If it fits, we can send your request to our factoring partner, RTS, for a quote. If it doesn't, we'll say so here first. Either way, you'll know what to ask any freight factoring company before you sign, and how to compare the answer with a broker's quick pay or a line of credit.
Monthly invoices you'd factor
Quotes come from our factoring partner, RTS. We may be paid for referrals.
We refer carriers to our factoring partner, RTS, and may be paid for referrals. It does not change your rate. Disclosure. General information, not financial advice.
Line 02 / Who is factoring for
Four carriers, four answers
These carriers are made up, and so are their numbers. Tap each one to print what factoring would cost them over a month and a year at the fee shown, and whether it fits. Change the fee to the one you've been quoted. The question is never "is factoring good?" but "is it the lowest-cost way to cover my cash gap?"
EXAMPLE
The cash gap is real and short-lived. Paying a few percent to keep fuel in the tank beats missing loads while the first checks clear.
Alternative: A bigger cash reserve before the first load, if you can build one.
The pattern: factoring fits best when the cash gap is real and the alternative is worse (missed loads, late fuel, a high-interest card). It fits worst when you already have the cash and would only be buying speed. For the long version with more cases, read is factoring worth it.
Line 03 / Factoring by carrier type
Trucking factoring services, matched to how you run
What a factoring company looks at before it says yes
Mostly your customers, not you. A factor buys the right to collect from your brokers, so it checks their credit and payment history first. Then it looks at your side: an active MC with insurance on file, whether any lender already has a lien on your receivables, and whether your paperwork is clean enough to collect on. That is why new authorities with thin credit can still be approved, and why a broker with a poor payment record can be refused even when your own history is good.
Costs and contracts
Tools and news
Line 04 / Factoring vs quick pay
Factoring vs broker quick pay, side by side
| Question | Freight factoring | Broker quick pay |
|---|---|---|
| Who pays you early | The factor, then it collects from the broker | The broker itself |
| Which loads | Usually all invoices, or chosen ones with spot factoring | Only that broker's loads, when offered |
| Cost | A percentage per invoice, plus any listed fees | A percentage taken off that load |
| Paperwork | Notice of assignment sent to every broker | None beyond the normal invoice |
| Broker credit checks | Most factors check brokers before you haul | You check the broker yourself |
| Contract | Often a term with notice to cancel | None |
| Collections | The factor chases slow payers | Not needed; paid early |
A real published example, so the numbers aren't abstract: Doft lists factoring at 2.49% flat per load, fully recourse after 60 days, funded in ACH deposit within 1 business day, with $3.00 per ach deposit; no setup, transaction or new debtor search fee and a 1-year commitment, 30-day cancellation notice, no volume commitment. That is one company's published offer, not a recommendation or an average; terms change, so check the current page. Our partner RTS doesn't publish its rate; it comes with the quote.
Quick pay is cheaper when only a few brokers are slow and they offer it at a small fee. Factoring wins when many loads would wait 30 days or more and you value the broker credit checks and collections. The quick pay vs factoring calculator runs both on your invoices.
Source: Doft, Doft freight factoring · checked Oct 2026
Source: RTS, RTS freight factoring · checked Oct 2026
Line 05 / How it works
Three steps, four documents
- 1. Sign up and send the NOA. The factor checks your authority and the brokers you haul for, then sends each broker a notice of assignment telling them to pay the factor.
- 2. Deliver and submit. After delivery you upload the invoice, the rate confirmation and the signed bill of lading or proof of delivery.
- 3. Get the advance, then the rest. The factor pays the advance, minus its fee. When the broker pays, any reserve is released.
Every step depends on clean paper: a rate con that matches the invoice, a BOL signed at delivery, and the right broker name. Most funding delays are paperwork delays. The full walk-through is on how factoring works, and what the fees look like across companies is on freight factoring rates.
What RTS says about its service, on its own pages (checked October 2026): it more than 90 percent of the total within 24 hours, "get paid the same day", and offers an app to upload invoices. Its rates, recourse terms and contract length are given with the quote, not published.
Signed BOL/POD in hand. You invoice the load.
Line 06 / Reading a quote
Eight lines to read in any freight factoring quote
Two quotes with the same headline rate can cost very different amounts. The difference hides in the lines below. Ask for every one in writing, from any factoring company for trucking, including our partner.
Advance rate
The share of the invoice paid up front. The rest is the reserve, released when the broker pays.
Fee structure
A flat percentage per invoice, or a rate that grows the longer the broker takes to pay. Flat is easier to budget; tiered can cost more on slow brokers.
Reserve release
How long the factor holds the reserve after the broker pays, and how it is paid back to you.
Recourse window
With recourse factoring, how many days before an unpaid invoice comes back to you, and what you owe then.
Other fees
Wire or ACH transfer fees, invoice processing, credit checks on new brokers, monthly minimums. Add them to the rate.
Volume terms
Whether you must factor every invoice, every invoice from certain brokers, or a minimum dollar amount each month.
Contract term
How long you are committed, whether it renews on its own, the notice to cancel and any early exit fee.
Leaving
How open invoices are settled and how the notice of assignment is released when you switch or stop.
The cost of cash, next to your other costs
On a $2,400 load, a 3% fee is $72. Divide by the miles and it sits on your cost-per-mile list like any other line: on a 900-mile load, 8 cents a mile. Compare that with what the money buys you: fuel for the next load today, no missed week while you wait on a check, and someone else chasing the slow broker. If those are worth more than 8 cents a mile to you right now, factoring is earning its fee.
Red flags
- - A low headline rate with fees for every transfer, invoice and broker check.
- - A long term that renews automatically with a short window to cancel.
- - Reserves held for weeks after the broker has paid.
- - An all-invoices clause you didn't notice, with a fee for loads you don't factor.
- - Pressure to sign before you have read the contract.
More on contract terms in factoring contracts for trucking companies.
Line 07 / Factoring questions
Freight factoring companies: what carriers ask before signing
How fast do I get paid?
Often within a day of sending a clean invoice, rate con and signed BOL. Some factors fund the same day. RTS says on its site that it advances more than 90 percent of an invoice within 24 hours. Missing paperwork is the usual reason funding slows down.
Can I use a dispatcher and factoring together?
Yes, and many carriers do. The dispatcher books the load and sends the paperwork; the broker pays the factor because of your notice of assignment; the factor pays you. Some factors will also pay your dispatcher from your advances if you authorize it.
Do I need good credit to factor?
Usually less than for a loan. Factors look mostly at the credit of the brokers and shippers who owe the invoices, because they are the ones paying. Your own history, liens on your receivables and how long you've had your authority can still matter.
Is factoring a loan?
No. You sell an invoice at a discount instead of borrowing against it, so there are no loan payments. But it can cost more than a loan over a year, and recourse factoring can leave you owing the factor if a broker doesn't pay. Compare both before you sign.
Can I factor only some loads?
With spot factoring, yes: you choose which invoices to sell. Many factoring contracts are for all your invoices, or all invoices from certain brokers, for a set term. Read the contract for a minimum volume or an all-invoices clause.
Can I switch factoring companies?
Yes, by following the contract's termination terms: notice period, any early exit fee, and settling open invoices. The new factor sends brokers a new notice of assignment and the old one releases the old NOA. Plan the switch so payments don't land in the wrong place.
What is a factoring reserve?
The part of an invoice the factor holds back until the broker pays, after the advance. If the advance is 90%, the other 10% is the reserve, minus the fee, released when the invoice is paid. How long reserves are held is a contract term worth reading closely.
Get a quote from our partner
Quotes come from our factoring partner, RTS. We may be paid for referrals.
We refer carriers to our factoring partner, RTS, and may be paid for referrals. It does not change your rate. Disclosure. General information, not financial advice.
Need loads too?
With diesel averaging $6.38 a gallon, loads that clear your floor matter as much as fast pay. Our dispatch service for owner-operators works with any factor, and you confirm every load. Apply for dispatch
See what fast pay would cost on your invoices
Three short steps: your monthly volume, your MC, and how to reach you. RTS quotes you directly, with the advance, the fee and the contract terms in writing. Compare before you sign.
We refer carriers to RTS and may be paid for referrals. It doesn't change your rate.
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