As a carrier, you have a lot of freedom- especially if you are an entrepreneur. That being said, there is a downside: getting paid promptly. If you are lucky, you may be paid when delivery is made. However, most of the time, you end up having to wait for your money, depending on the net-payment rules of the shipper. You may have to wait for 60 days or more to see a payment from the cargo you just delivered.

Truck factoring can help you avoid this payment problem. What exactly is truck factoring though? It is sometimes referred to as trucking invoice factoring or transportation factoring, and it is a method for getting you paid within days and sometimes within a few hours- instead of having you wait in the lobby.

In truck factoring, you sell your invoices to a third party, referred to as a factor. Then, you walk away with the cash for the delivery, minus a factoring fee, and then the factoring company will collect the funds from the broker.

How Does it Work?  

The process of entering into truck factoring is not all that complicated. It’s the same process as your typical pick-up/drop-off, but you will send your paperwork to the third party instead of the broker. Here are the five steps to successful truck factoring:

Find a high-paying load
Deliver freight
Submit paperwork to the factoring company
Get paid up to 98% of the value of the invoice from the factoring company
The broker collects from the shipper and the factoring company collects from the broker

Benefits of Truck Factoring

If you struggle with the lag time between delivery and payment, truck factoring may be a great option for you. It can provide a lot of benefits for both you and your trucking company.

Truck factoring provides immediate cash flow
Truck factoring zeroes out the balance sheet
Truck factoring reduces operational overhead
Truck factoring is non-recourse payments


If you are running your own trucking company and the lag time between delivering a load and getting paid for that load is just too long, it can be easy to want to give up. However, that’s where truck factoring comes in. If you need help or want more information about truck factoring or you’re ready to apply for funding, contact Means Commercial Capital.