What is Freight Factoring?
Getting paid shouldn’t mean waiting for brokers to process invoices. Factoring turns completed loads into immediate cash, so you can keep your trucks rolling and your business growing without the stress of slow payments.
Freight factoring explained.
Freight factoring is a financial service that helps trucking businesses get paid faster. Instead of waiting on brokers or shippers to settle invoices, carriers sell those invoices to a factoring company like OTR Solutions for immediate payment. The factoring company then collects from the broker, keeping cashflow steady and operations running smoothly.
.avif)
How does freight factoring work?
Freight factoring simplifies the payment process so you can focus on moving freight, not chasing down invoices. Here’s how it works:
Find, load, and haul freight
Carry a load from a broker who is approved on the OTR Broker Check tool and obtain proper documentation.
Submit invoices and get paid
Upload your rate confirmation and proof of delivery to the OTR Client Portal / Mobile App. Once approved, we initiate payment to your bank account.
We invoice
Instead of sending invoices directly to every broker you work with, after you upload an invoice to OTR, we invoice your broker within 24 hours on your behalf.
Broker pays us
OTR’s in-house accounts receivable team tracks invoices waiting for payment and collects that payment when it’s due.
What are the different types of freight factoring?
.png)
.avif)
Without Factoring
Without freight factoring, slow broker payments create cashflow gaps, making it harder to cover expenses, take on new loads, or grow your business.
.svg){kind=icon}
With Factoring
With freight factoring, you receive payment within 24 hours, skip the hassle of collections, and keep operations running smoothly.
Learn more about freight factoring with OTR Solutions.
See how factoring helps trucking businesses stay cashflow strong and focused on growth.
.svg)
.avif)
Got questions?
We’ve got answers.
Find out everything you need to know about freight factoring, from how it works to how you get paid.
Most freight factoring companies pay within 24 hours of invoice approval. With OTR Solutions, carriers receive same-day funding on approved invoices. For even faster access, Truly Instant Funding delivers payments instantly, 24/7/365
No, most freight factoring programs let you choose which invoices to factor. This flexibility lets carriers factor only certain brokers or loads, helping control costs while still improving cashflow when needed.
No credit check is required to start factoring with OTR. We ask for documents such as proof of insurance, articles of ownership, and operating authority.
Non-recourse freight factoring is typically the best option, as it protects carriers from broker non-payment. With OTR Solutions’ True Non-Recourse Factoring, there are no chargebacks and all collections are handled for you, making it a strong option for new authorities.
Freight factoring is usually more reliable and faster than broker Quick Pay. Quick Pay programs typically take 1 to 5 days and can change rates without notice. Factoring provides consistent funding timelines, often within 24 hours, along with payment tracking and support. To learn more, check out our guide on Quick Pay for truckers.
Freight factoring may be a good fit if delayed payments make it difficult to cover fuel, payroll, or operating expenses. Carriers operating week-to-week often use factoring to stabilize cashflow and avoid disruptions caused by slow-paying brokers.
Look for transparent rates, reliable payment timelines, and dedicated support. Non-recourse protection, in-house collections, and easy invoice submission tools are key signs of a factoring partner built for carriers. For more information, see our guide on how to choose the best freight factoring company.
Freight factoring is a financing solution where a trucking company sells its unpaid invoices to a factoring company for immediate cash. Instead of waiting 30 to 90 days for broker payments, carriers can get paid within 24 hours or sooner. The factoring company then collects from the broker directly.
