Factoring: Solving the Slow-Paying Customer Problem

Slow-paying brokers are the #1 cash-flow killer for growing carriers. You deliver the freight, your broker takes 30, 60, or 90 days to pay you, and you’re covering fuel, maintenance, and driver pay out of pocket in the meantime. Factoring companies solve this by paying you upfront — they take the invoice off your hands, give you cash today, and collect from the broker themselves.

Whether factoring makes sense depends on the cost (typically 1–3% of invoice value) and your growth trajectory. For some carriers, it’s temporary (use it to scale, drop it when cash flow stabilizes). For others, it’s permanent (the margin on the load covers the factoring fee).

The full breakdown — how factoring works, when to use it, what questions to ask a factor, and how it stacks against other cash-flow solutions — lives on the Roadmap.

→ Read the full factoring and cash-flow article.