Factoring Resources
Freight factoring lets a carrier sell an unpaid invoice to a factoring company for most of its value today instead of waiting 30–60 days for the broker or shipper to pay. This page is general education only. Darawal Dispatch LLC is not a factoring company, lender or financial institution, and we do not receive any decision-making authority over your funding. You choose your own factoring provider and sign your own agreement.
What Freight Factoring Is
The basic idea, in plain terms.
- You sell a delivered load's invoice to a factoring company
- The factor advances most of the invoice value right away
- The factor collects payment from the broker or shipper
- You get cash flow for fuel, insurance and payroll instead of waiting on terms
- It is a sale of receivables, not a loan against your truck
- Factoring is optional — many carriers run on direct broker terms instead
How Factoring Works, Step By Step
Typical sequence after delivery.
- You deliver the load and collect a signed BOL / POD
- You submit the rate confirmation, BOL/POD and invoice to the factor
- The factor verifies the load and the broker's credit
- The factor advances an agreed percentage of the invoice
- A reserve amount may be held until the broker pays
- The factor collects from the broker and releases any reserve, less fees
Recourse vs Non-Recourse
The single most important distinction in your agreement.
- Recourse: you remain responsible if the broker never pays
- Recourse usually carries a lower fee
- Non-recourse: the factor absorbs certain non-payment risk
- Non-recourse usually carries a higher fee
- Non-recourse often only covers broker credit failure, not disputes
- Read exactly which non-payment causes are and are not covered
Fees & Contract Considerations
Look past the headline rate.
- Factoring rate per invoice (commonly a small percentage of gross)
- Flat fee vs tiered fee based on how long the invoice ages
- Advance rate and whether a reserve is held
- Same-day or wire fees, ACH fees and fuel-card terms
- Monthly minimum volume requirements
- Contract length, notice period and early termination fees
- Whether all invoices must be factored or you can pick and choose
- UCC filing on your receivables and how it is released
- Invoice buy-back or chargeback terms on unpaid loads
Same-Day & Next-Day Funding
Funding speed depends on more than the factor.
- Same-day funding usually requires submitting before a daily cutoff time
- Complete, legible paperwork is the most common cause of delay
- The factor must verify the load with the broker before funding
- Wire transfers move faster than ACH but often carry a fee
- Fuel-card funding can be immediate while bank funding settles
- Weekends, bank holidays and broker office hours affect timing
Broker Credit Considerations
Factors approve the broker, not just you.
- Factors check each broker's credit before funding an invoice
- A low-credit broker may be declined or funded at a lower advance
- Ask your factor for broker credit checks before you accept a load
- Credit limits can cap how much you factor with one broker
- Quick-pay from a broker is an alternative worth comparing
- Darawal can request broker information, but the credit decision is the factor's
Documents You Will Need
Keep these clean and complete for every load.
- Signed rate confirmation from the broker
- Signed bill of lading (BOL)
- Signed proof of delivery (POD) with no unnoted exceptions
- Your invoice referencing the load and rate confirmation number
- Lumper, detention or accessorial receipts
- Scale tickets or photos where required
- Notice of assignment acknowledged by the broker
- Legible scans — poor images are a leading cause of funding delays
Questions To Ask Before You Sign
Get every answer in writing.
- Is this recourse or non-recourse, and what exactly is covered?
- What is the total all-in cost per invoice, including every fee?
- What is the advance rate and is a reserve held?
- What is the funding cutoff time and how fast do funds arrive?
- Is there a monthly minimum, and what happens if I miss it?
- How long is the contract and what is the cancellation notice?
- Are there early termination fees or invoice buy-back obligations?
- Do I have to factor every load or can I choose?
- Will you file a UCC, and how is it released when I leave?
- Do you provide broker credit checks before I book?
- Who handles collections and how do you contact my brokers?
- Are there fuel-card, insurance or ELD products bundled in?
Approved Factoring Resources
Approved factoring-company resources will be published here. Darawal Dispatch does not receive referral authority over your choice — when this list goes live it will be informational only, and you will still review terms and sign directly with the provider you select.
Coming soon
Factoring Disclaimer
Darawal Dispatch LLC is an independent freight dispatch and carrier administrative support company. Darawal Dispatch LLC is not a factoring company, lender, financial institution, motor carrier, freight broker, or freight forwarder. Factoring companies listed or referenced on this website are provided as informational resources only. Motor carriers are responsible for reviewing and selecting their own factoring provider and entering into their own agreements.
These resources are general educational information for authorized motor carriers. They are not legal, tax, insurance or compliance advice. Darawal Dispatch LLC is an independent freight dispatch company — not a motor carrier, freight broker or freight forwarder — and the carrier remains solely responsible for regulatory compliance, safety, insurance, drivers, equipment and transportation services.
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