Freight Factoring
A working-capital structure that advances cash against freight invoices the same day a load is delivered, instead of waiting 30 to 90 days for a broker or shipper to pay.
Why carriers use it
Trucking operators carry fuel, driver pay, insurance, and maintenance every week. Broker and shipper payment terms rarely match that cadence. Freight factoring closes the gap by advancing cash the moment a clean bill of lading is in hand.
Properly structured, the facility scales with load count. Adding trucks does not require renegotiating the line.
What to watch for
Advance rates typically run 90 to 97 percent of the invoice. The real cost lives in the discount rate, fuel-advance add-ons, and any minimum-volume penalties. Carriers often overpay because they only read the headline rate.
See how this structure is used in practice.
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