Freight Factoring for Owner-Operators: How It Works
5 min read
14-day free trial · $15/driver/month after.
Start Your 14-Day Free TrialBrokers and shippers often pay in 30 to 60 days, while fuel and repairs are due now. Freight factoring turns your invoices into cash sooner.
How factoring works
You sell your freight invoice to a factoring company, which advances most of the invoice value and collects payment from the broker. You pay a fee for the service.
Recourse vs. non-recourse
- Recourse: you are responsible if the broker doesn't pay
- Non-recourse: the factor carries some of that risk, usually for a higher fee
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ELD, fuel, factoring and insurance tools for owner-operators and small fleets, in one place.
Start Your 14-Day Free Trial$15/driver/month after trial. ELD hardware $150.
What to check before signing
- Fee percentage and any extra fees
- Contract length and minimum volume
- How fast funds arrive
- Whether you can choose which loads to factor
Related guides & tools
Try LOGWAY free
ELD, fuel, factoring and insurance tools for owner-operators and small fleets, in one place.
Start Your 14-Day Free Trial$15/driver/month after trial. ELD hardware $150.