Cash flow is the lifeblood of any trucking business. You've hauled the freight, delivered on time, and submitted your paperwork — but now you have to wait 30, 45, or even 90 days to get paid. Meanwhile, fuel costs, truck payments, insurance, and living expenses don't wait.
Two solutions exist to speed up payment: freight factoring and broker quick pay. Both get money in your pocket faster, but they work differently and have different costs. This guide breaks down both options so you can choose what's best for your situation.
WHAT IS FREIGHT FACTORING?
Freight factoring is when you sell your unpaid invoices to a factoring company in exchange for immediate payment. The factoring company pays you upfront (usually 90-97% of the invoice amount within hours), then collects the full amount from the broker on their own timeline.
How Factoring Works:
- You deliver a load and receive a signed rate confirmation and BOL
- You submit the invoice and paperwork to your factoring company
- The factor advances you 90-97% of the invoice amount (same day or within hours)
- The factor collects the full payment from the broker (30-45 days later)
- The factor sends you the remaining balance minus their fee (typically 2-5%)
Factoring Pros:
- Works with virtually any broker — you're not limited to brokers who offer quick pay
- Get paid within hours of submitting paperwork
- Many factors offer non-recourse plans (they take the risk if the broker doesn't pay)
- Additional services like broker credit checks, fuel cards, and fuel advances
- Consistent, predictable cash flow
Factoring Cons:
- Fees of 2-5% per invoice add up over time
- Some factors have minimum volume requirements or long-term contracts
- You lose some control over the billing relationship with brokers
Triumph Freight Factoring — Get Paid in Minutes
Same-day funding, non-recourse protection, fuel discounts, and no minimum invoice requirements. Trusted by thousands of owner-operators nationwide.