How long do I have to use your factoring service if I sign up?

We don’t lock you into any kind of contract term. You can choose to terminate your factoring service at any time. When you are ready to end your factoring service with us, you simply need to provide us with a 60-day written notice. Once that 60-day notice has expired and your account is cleared out, you are free to leave without penalty. If you want to leave prior to completing your 60-day written notice, you may do so by paying a termination fee. Please note that once you inform our team that you wish to terminate your factoring service, you will no longer be able to utilize it for factoring while your 60-day notice completes. You can cancel your termination at any time by submitting an invoice for payment.

Additional Information About Invoice Factoring

Unfamiliar with factoring or have additional questions about the process? Explore the basics below.

What to Know Before Signing a Factoring Agreement

A factoring agreement is more than a cash flow tool—it is a formal partnership that outlines how and when your business will receive payment for delivered freight. Through invoice factoring, carriers can access a percentage of the invoice value—typically between seventy and ninety percent—shortly after delivering a load, rather than waiting for customer payment terms to run their course. This advance can be used to manage immediate operational expenses such as fuel, payroll, and repairs.

Before funding begins, one important step must be completed: your customer must acknowledge the Notice of Assignment (NOA). This acknowledgment ensures that the factoring company is authorized to bill the customer and receive payment on your behalf. Funding cannot begin until this step is complete, particularly during first-time fundings.

How Factoring Companies Approve Invoices

Once your delivery is complete and supporting documentation is submitted, the factoring company manages the invoice approval process on your behalf. This typically includes:

• Reviewing the proof of delivery, rate confirmation, and invoice details for accuracy.
  
  
• Billing your customer in accordance with their preferred process.
  
  
• Requesting confirmation from your customer that the charges are valid and the delivery was accepted.
  
  

In most cases, especially in trucking, a signed bill of lading is sufficient to verify delivery and allow for immediate funding. However, in situations involving new customers or unique billing requirements, response times may vary.

Recourse vs. Non-Recourse: Understanding Your Options

Factoring agreements are commonly structured in one of two ways:

• Recourse factoring: If your customer does not pay the invoice, you are responsible for repaying the advance.
  
  
• Non-recourse factoring: The factoring company assumes the credit risk, offering added protection, usually for a slightly higher rate.
  
  

Both options can serve trucking businesses well. If you primarily haul for established brokers or shippers with a reliable payment history, recourse factoring may offer cost advantages. If your business model includes working with a variety of customers or newer brokers, non-recourse may provide added peace of mind.

Understanding Contract Terms and Fee Structures

Factoring rates typically range from one to three percent of the invoice value. These fees support key services, including invoice management, collections, and fast payment processing.

Some agreements may include additional charges, such as:

• Fees for credit checks
  
  
• Monthly account support or reporting services
  
  
• Contract termination terms or early exit clauses
  
  

Most factoring agreements include a notice period if you choose to end service. This ensures a smooth transition and allows time to close out any remaining invoices. A transparent factoring partner will walk you through all associated terms so you know exactly what to expect.

Questions to Ask Before Choosing a Factoring Company

Every factoring provider operates a little differently. To ensure the partnership aligns with your business needs, ask:

• Does the company specialize in transportation and trucking?
  
  
• How soon after billing can I expect funding?
  
  
• Are all invoices required to be factored, or is selective factoring available?
  
  
• How are first-time fundings and NOA acknowledgments managed?
  
  

An experienced factoring partner understands the operational realities of trucking. Look for a provider that offers clear communication, timely funding, and proactive support to help keep your business moving.

Ensure You’re Choosing the Right Factoring Partner

Request a complimentary rate quote or explore your options with a factoring specialist to begin the process with confidence.