Freight Factoring for Owner-Operators
Freight factoring for owner-operators usually gets you paid within a day or two of delivery instead of waiting 30 days or more on broker terms. Use one of our factoring partners or keep your own factor: either way, the broker pays you or your factor directly, and no load payment ever passes through our account.
How freight factoring works with our partners
Brokers often pay 30 days or more after delivery. Fuel, insurance and truck payments don't wait that long. Factoring closes the gap: a factoring company buys your invoice and pays you most of it right away, then collects from the broker.
- You deliver the load and we send the paperwork: rate confirmation, signed bill of lading and proof of delivery.
- The invoice goes to the factoring company instead of waiting on the broker.
- The factor advances most of the invoice to you, usually within a day or two, minus their fee.
- The broker pays the factor on its normal terms. Depending on the agreement, any reserve is released to you after that.
We connect you with top factoring solutions tailored to each carrier's needs. Your dispatcher helps you compare advance rates, fees and terms, so the option fits how you run, not the other way around.
Recourse or non-recourse, in short
| Recourse | Non-recourse | |
|---|---|---|
| If the broker never pays | You buy the invoice back or replace it | The factor absorbs the loss, but usually only if the broker goes out of business or can't pay |
| Fee | Usually lower | Usually higher |
| What to check | How long before an unpaid invoice comes back to you | Exactly which non-payment reasons are covered |
The right choice depends on your brokers, your cash cushion and how much risk you want to carry, so we'll help you weigh both. Read the contract either way: "non-recourse" rarely covers disputes over damage or shortages. Our guide to recourse vs non-recourse factoring covers the contract terms to check.
Your money never touches our account
This is the part that matters most. When you factor, the broker pays the factoring company, and the factor pays you. When you don't, the broker pays you. In neither case does a load payment pass through ProTruckSolutions.
When you use our dispatch service with factoring, the dispatch fee stays completely separate: we invoice our flat dispatch fee, 6% or 8% of your gross, once a week, and you pay it by ACH, Zelle or a secure payment link. The factor never deducts it, and we never deduct it from your load money.
Keep your own factor if you like
You don't have to use our partners. If you already factor with a company you trust, keep it. Just send us their notice of assignment during setup, so every broker pays the right place.
What to watch for in any factoring contract
- The real rate. A low headline percentage can grow with time-based fees if a broker pays slowly.
- Reserves. Some factors hold back part of each invoice until the broker pays.
- Contract length and minimums. Watch for long terms, monthly volume minimums and exit fees.
- All-invoice requirements. Some contracts make you factor every load, not just the ones you choose.
- Notice of assignment. Once brokers are told to pay the factor, switching takes paperwork. Know the release process before you sign.
Broker quick pay vs factoring
Some brokers offer quick pay: they pay you in a few days instead of 30 or more, in exchange for a small percentage off the invoice. Here's how it compares with factoring:
| Broker quick pay | Factoring | |
|---|---|---|
| Works with | Only the brokers that offer it | All your brokers at once |
| Cost | A small percentage off each invoice, set by each broker | A fee on every invoice you factor |
| Paperwork | None beyond the broker's own terms | A factoring contract |
| Extras | None | Many factors run broker credit checks for you |
| Best when | Most of your loads come from a few brokers with good quick pay terms | You haul for many brokers |
Either way, the dispatch fee stays separate. See how dispatch and factoring fees stack up before you sign either.
Is factoring worth it for you?
Price any offer, ours or another company's, with the factoring fee calculator before you decide. It shows the cost in dollars and as a yearly rate.
Factoring costs money, so it's worth asking whether you need it. It usually makes sense when:
- You're a new authority without cash reserves to cover 30 or more days of broker terms
- A big repair or slow month has squeezed your cash
- You'd rather not chase broker payments yourself
It may not be worth it if you have a solid cash cushion and your brokers pay reliably. Some carriers factor only their slow-paying brokers, if their contract allows it. Run the numbers on the factoring fee against what waiting for payment actually costs you.
Want the full picture on dispatch? See our dispatch agreement or how dispatch works for owner-operators.
Ask us about factoring partners
Tell us how you get paid today. We'll explain your options, or leave your current factor alone.