Which funding products does this apply to?

Working Capital, Invoice Financing. Each has its own page listing the funders in this directory that offer it and what each one publishes about its terms.

Is this specific to trucking & logistics?

It is written around how a trucking & logistic business actually generates and collects cash, which is what makes its funding problem different. The mechanics transfer; the arithmetic may not.

The Find Me Funders research desk. Some drafting is AI-assisted, and every page that is says so at the top, including whether a person has checked its claims yet.

How do I know a figure here is right?

Where a page carries the green notice, its claims were checked against the sources listed at the end and a reviewer is named. Where it carries the amber one, nobody has verified it yet and you should confirm anything you plan to act on.

Are the examples real deals?

No. Every worked example is labelled illustrative and exists to show the arithmetic. What any particular lender charges is on that lender's page, where it publishes it.

Why do you never say what a typical rate is?

Because we cannot source it. A market average assembled from lenders who do not publish prices is a guess with a decimal point on it. Where a lender publishes a figure, we show that figure and say where it came from.

Is this financial or legal advice?

No. It is general information about how these products work. Outcomes depend on your contract and your state, and a lawyer or accountant licensed where you are is the person to ask about your situation.

Can I reuse this content?

Quote a paragraph with a link back. Do not republish whole articles.

Why your trucking factoring rate depends on your brokers

Your factoring rate is set by your brokers, not by you

A carrier with perfect authority, clean inspections and two years of history still gets priced off the credit of the people who booked its loads.

By Find Me Funders research desk Updated 14 September 2026 1071 words 5 min read

Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.

Two carriers with identical equipment, identical safety records and identical time in business get different factoring quotes, and the difference is not about them. A factor advancing against freight invoices is buying the obligation of whoever booked the load. Your operation determines whether the invoice is valid. The broker or shipper determines whether it gets paid.

That is the whole mechanic, and almost every frustrating conversation with a factor makes sense once you hold it.

What the credit file actually is

When you submit a load to a factoring company, they run the debtor, not you. They are looking at that broker's payment history across their own portfolio, days-to-pay, any claims or chargebacks, bond status, and how much of that debtor's paper they already hold. The answer comes back as a credit limit on that debtor and an approval, a partial approval or a decline on the load.

Illustrative only —eighteen loads a month at 2,400 each is 43,200 of gross revenue. On loads booked with brokers the factor grades well, the discount is 2.5 per cent: 60 a load, 1,080 a month. On loads booked with brokers the factor grades poorly, the discount is 4 per cent: 96 a load, 1,728 a month. The difference is 648 a month, 7,776 a year, on the same trucks doing the same miles. Advance rates move too. At a 95 per cent advance, 2,400 releases 2,280 now and 120 at collection. At 80 per cent it releases 1,920 and holds 480. Across eighteen loads that is 6,480 of your money sitting in reserve instead of buying fuel.

None of that is a judgement about your driving.

The four levers the debtor controls

The advance rate.Weaker debtor credit means a larger reserve, because the reserve is the factor's cushion against a short pay or a non-pay. You get the reserve back when the invoice clears — which is exactly when you did not need it.

The discount or fee.Priced per invoice or per 15- or 30-day bucket, and the bucket is what matters when a slow-paying debtor takes 45 days. A fee quoted "per 30 days" on a debtor who pays in 46 days is two buckets, not one and a half, in most agreements. Read whether partial periods round up.

The credit limit.Every debtor gets a ceiling. Hit it and your next load with that broker is unfunded until the earlier invoices clear. Carriers who run most of their freight with two or three brokers find out about this the week they grow.

Whether it is funded at all.A non-recourse facility does not mean every load is covered. It means credit-approved loads are covered for the debtor's insolvency, usually and only that. Loads the factor declined are not in the programme, and a dispute over a late delivery, a temperature failure or a missing lumper receipt is a dispute, not an insolvency, so the recourse comes back to you. Read the carve-outs in recourse vs non-recourse factoring terms before you treat non-recourse as insurance.

What is actually being underwritten about you

Three things, and they are narrower than most carriers expect.

Can you produce a clean invoice package.Signed rate confirmation, signed bill of lading with no exceptions noted, proof of delivery, lumper and accessorial receipts. A factor's real loss experience is not broker insolvency; it is invoices that cannot be collected because the paperwork does not support them.

Are you going to double-broker or double-factor.This is what the validity guarantee is for. You are personally warranting that the receivable exists, is yours to sell, and has not been sold to anyone else. That guarantee survives even in a non-recourse facility, and it is the clause that turns a paperwork problem into a personal one.

Do you have prior liens on receivables.A previous advance or a prior factor with a live UCC-1 on accounts has to be terminated or subordinated. This is the single most common reason a carrier's onboarding stalls after the quote.

How to use this

Grade your own book before you shop. List every broker and shipper you invoiced in the last ninety days, the dollars with each, and the days each took to pay. Two things fall out. First, you can see your own concentration: if 62 per cent of your revenue came from three brokers, your factoring terms are effectively three credit decisions, and the loss of one relationship is a funding event, not just a sales event. Second, you can see which relationships are expensive. A broker who pays in 55 days on a two-bucket fee schedule costs you twice what a 28-day broker costs, before you count the working capital.

Then ask the factor for the credit answer before you book, not after. Most will run a debtor on request within the day. A carrier who checks first and declines the load is making a pricing decision; a carrier who hauls first and finds out after is making a financing decision without knowing the price.

Where the pricing is negotiable

The debtor credit is not negotiable. These are.

Rounding on the fee periods. Ask whether a 32-day pay is billed as one period plus two days or as two full periods.
The reserve release timing. Same day as collection, next day, or weekly sweep. A weekly sweep on a carrier collecting every day is a permanent interest-free loan to the factor.
Fuel advance fees and the cost of same-day funding. These are separate charges and often the largest line after the discount.
Termination and minimum-volume terms. A monthly minimum on a seasonal carrier is a fee you pay for freight you did not haul. Ask for the minimum to be annual, or absent.
Notification wording. The notice of assignment sent to your brokers is boilerplate, and some versions read as though the carrier is in distress. Ask to see it.

What to have ready before you apply

A current debt schedule, a UCC search on your own entity showing what is filed against your receivables, ninety days of settled invoices with the paperwork attached, and the broker-by-broker ageing described above. Refuse to sign until you have seen the fee schedule as a document rather than as a percentage quoted on a call — the discount is usually the smallest part of what you will pay in a year.