Line 01 / Dictionary

Trucking money terms, defined in plain words

The words on your invoices, factoring statements and broker paperwork, each with a short definition, a worked example and what to do about it.

• Invoice agingInvoice aging is a way of sorting your unpaid invoices by how long they have been outstanding, usually in buckets of current, 1-30, 31-60, 61-90 and over 90 days, so you can see which brokers owe you and how late they are.
• Notice of assignment (NOA)A notice of assignment is a letter from a factoring company to a broker or shipper saying the carrier has sold its invoices to the factor, so payment must go to the factor. Once a broker has it, paying the carrier directly may not settle the debt.
• Quick payQuick pay is an option some brokers offer to pay a carrier's invoice within a few days, instead of on standard terms such as 30 days, in exchange for a fee, usually a percentage taken off that load's pay.
• Reserve (factoring)A factoring reserve is the part of an invoice the factoring company holds back when it advances you money, and releases, minus its fee, after the broker pays. If the advance is 90%, the reserve is the other 10%.