How do you approve my invoice for payment?

The invoice approval process boils down to three steps. First, we verify that the invoice you have presented for payment, as well as any supporting documentation, is complete and accurate. Next, we bill your customer through whatever process they normally require. This process varies from customer to customer. Lastly, our team verifies with your customer that the amounts you have invoiced are correct, and all required documentation is present and accurate. In the case of a first-time funding of a customer, a factoring company has the additional step of sending a client’s customer a Notice of Assignment and verifying that it has been accepted.

Factors need verification of the accuracy of the invoice amounts and that the customer intends to pay the invoiced amount. Since a factoring company uses those customer approvals to verify what amounts they can advance on an invoice, the approval is critical to the efficient functioning of a same-day payments service. Since the invoice approval is a formal verification of the accuracy of the information provided and a promise to pay the amounts listed, it is critical that a factor does not fund an invoice until this approval is received. Any underpays, adjustments, or other payment irregularities need to be known about prior to funding.

Once the invoice has been billed by the factoring company, the approval process is highly dependent on the response time from the customer. Since internal approval processes vary highly from company to company, giving a firm time frame is impossible. However, in the vast majority of cases, the process is complete in less than 48 hours. In the case of trucking, the signed bill of lading is considered the approval of the invoice, and therefore we are able to fund our trucking clients immediately when we bill.

Unfortunately, if a factor is unable to get an invoice approved by the debtor on the invoice, they will be unable to approve it for same-day payment. Since the invoice approval is intended to verify the amounts being billed, without it, a factor would have no idea whether the work or amounts were valid, and would therefore be unable to fund it. However, your factoring company would still be able to bill your customer, and you would be paid in your normal invoice term.

How the Invoice Approval Process Works in Factoring 

The invoice approval process is critical to ensuring same-day funding—especially in the trucking industry, where cash flow timing directly affects operations. For trucking clients, the process is typically fast and efficient once key documentation is in place.

After your load is delivered and you provide the required supporting documents (such as the signed bill of lading and rate confirmation), the factoring company prepares and submits the invoice to your customer on your behalf. The approval process begins once the invoice is billed.

Before any funds are advanced, the factoring company must verify that the invoice is accurate, complete, and confirmed by your customer. For first-time fundings, this process may take longer due to the need to establish the relationship between the factoring company and your customer. That includes obtaining acknowledgment of the Notice of Assignment (NOA), a standard industry requirement.

What is a Notice of Assignment and Why it Matters

When a trucking company begins working with a factoring provider, the factor sends a Notice of Assignment (NOA) to each listed customer—typically brokers or shippers. This document formally notifies the customer that the factoring company is responsible for invoicing and will be receiving payments directly on behalf of the carrier.

Until the customer acknowledges the NOA, the factoring company cannot approve invoices for funding. This step is essential for mitigating risk and ensuring that payments are directed appropriately. While this may delay first-time funding for that customer, future invoice approvals are generally much faster once the NOA has been accepted.

Invoice Approval = Verification + Customer Confirmation

Our process is a little different because we create the invoices for you and take care of the billing. However, a typical process is outlined below.

Once the invoice is created and billed to the customer, the factoring company performs a series of verification steps:

• Confirm that all required documentation has been received (e.g., signed bill of lading, rate confirmation, etc.)
  
  
• Ensure that all amounts invoiced are accurate and consistent with the agreement
  
  
• Contact the customer directly to verify receipt and acceptance of the load and charges
  
  

In trucking, the signed bill of lading often serves as sufficient delivery confirmation. This allows many invoices to be approved and funded the same day they are billed.

However, in cases where the customer has additional internal approval requirements, the process may take longer. The factoring company follows up directly with the customer to secure timely confirmation, and your ongoing communication with brokers can further support this effort.

Common Issues That Delay Invoice Approval

Even with a well-managed process, a few common issues may delay funding:

• Missing or incomplete documentation (e.g., unsigned or unclear proof of delivery).
  
  
• Customer does not confirm delivery or disputes the charges.
  
  
• Notice of Assignment has not been acknowledged (common with new customers).
  
  
• Discrepancies between the agreed rate and the invoiced amount.
  
  

Because the factoring company is responsible for billing and collections, accuracy in the documents you submit plays a key role in avoiding these delays. Ensuring your paperwork is complete and legible helps the approval process run smoothly.

For Trucking Businesses: Why Faster Approvals Matter

In the trucking industry, timing is critical. When fuel costs, driver pay, and maintenance cannot wait, reliable cash flow becomes essential. A strong factoring partner that understands the industry will guide you through setup, manage invoice approvals with your customers, and help you avoid unnecessary payment delays.

By working with a factor that specializes in trucking, you can count on a process designed for your business—one that minimizes wait times and maximizes operational continuity.

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