You delivered the load on time. The paperwork is submitted. Now you wait. And wait. For trucking businesses running on tight margins, Net 30 payment terms can feel like an eternity. Those 30 days between delivery and deposit create real problems for carriers who need to pay for fuel today, not next month.
The good news? You have options. Modern factoring solutions and instant funding technology have changed how carriers get paid. Instead of waiting a month for broker payments, you can access your money the same day your invoice is approved. This guide breaks down why Net 30 is bad for your trucking business and shows you practical alternatives that keep your cashflow steady.
Key Takeaways:
- Net 30 creates dangerous cashflow gaps - forcing carriers to cover fuel, maintenance, and driver pay out of pocket while waiting for broker payments.
- You become an unpaid lender to brokers - financing their operations interest-free while your own expenses pile up.
- Late payments compound the problem - with some brokers stretching Net 30 into Net 45 or 60 without warning.
- Modern funding options eliminate the wait - with same-day funding and Truly Instant Funding available through factoring providers like OTR Solutions.
What does Net 30 mean in trucking?
Net 30 is a payment term that gives brokers and shippers 30 days to pay carriers after freight delivery. When you complete a haul and submit your invoice, the clock starts. The broker has a full month to process your payment, and their accounting team adds your invoice to their queue.
Here’s a simple example: you pick up a $2,000 load on January 1st and deliver it the same day. Under Net 30 terms, the broker can wait until January 31st to send payment. With processing time, you might not see that money until early February, over 30 days after completing the work.
Why Net 30 is bad for trucking companies
Payment delays create real operational challenges for carriers. The trucking industry runs on cashflow, and waiting 30 days for every payment can strain even well-managed businesses. Here are the four biggest problems with Net 30 payment terms.
1. It creates major cashflow gaps
Every load you haul requires upfront expenses. You need fuel to pick up the freight, there are tolls along the route, and sometimes lumper fees at delivery. If you have drivers, their wages cannot wait 30 days. These costs hit your account immediately while your income sits in a broker's payment queue.
The gap between money going out and money coming in puts carriers in a constant squeeze. According to the U.S. Small Business Administration, the top reasons for closing were low sales, the owner(s) retiring, and the owner(s) selling the business. For trucking companies, low sales and cashflow gaps often go hand in hand, since delayed payments make it harder to take on new loads and keep trucks moving.
2. You are essentially financing your clients
Think about what Net 30 really means. You performed a service and paid for fuel, labor, and wear on your equipment. The broker received the value of your work immediately, but they get to hold onto your money for a full month, interest-free. You are giving brokers an unpaid loan every time you accept these terms.
The opportunity cost adds up fast. That $2,000 sitting in a broker's account for 30 days could cover fuel for your next load or go toward a repair that keeps you on the road. Instead, you are waiting while someone else uses your earned income to run their business.
3. It increases the risk of late or missed payments
Net 30 is supposed to mean payment within 30 days. In reality, many carriers experience longer waits. Some brokers stretch payment terms to Net 45 or even Net 60 without a formal agreement. Others have slow accounting departments that consistently pay late, throwing off your entire budget.
Beyond slow payments, there is always the risk of non-payment. Brokers can dispute invoices, claim paperwork issues, or in the worst cases, go out of business entirely. With non-recourse factoring, carriers are protected against broker non-payment, but under standard Net 30 terms, you bear all the collection risk yourself.
4. It slows growth and hurts competitiveness
Waiting 30 days for every payment limits what you can do with your business. Revenue that should be available for reinvestment sits in someone else's account instead. You cannot add trucks, hire drivers, or take on more loads when your cash is constantly tied up in receivables.
Carriers using factoring have a competitive edge. They can cover fuel costs immediately, take loads without worrying about cashflow timing, and reinvest earnings faster. According to ATRI's 2025 Analysis of the Operational Costs of Trucking, the current economic environment makes cost management essential to successful operations, and Net 30 terms only add to that financial pressure.
Why Net 30 is outdated in today's freight industry
The trucking industry has evolved. Technology enables real-time tracking, instant communication, and immediate verification of deliveries. Payment systems should keep pace, but Net 30 terms remain stuck in an era when paper invoices traveled through the mail and accounting departments processed payments by hand.
Carriers today expect faster access to funds. When you can track a shipment in real time and submit invoices from your phone, waiting a month for payment feels out of step..
Better alternatives to Net 30 for carriers
Modern payment options give carriers ways to get paid faster without the cashflow squeeze of Net 30 terms. Here are two alternatives worth considering.
Same-day payments
Freight factoring provides same-day funding on approved and processed invoices. Instead of waiting 30 days or more for a broker to pay, you sell your invoice to a factoring company and receive payment within hours. The factoring company then collects from the broker on their standard terms.
This approach gives you immediate access to your earnings while someone else handles the wait. Factoring companies also manage collections, reducing your administrative burden. For carriers tired of chasing payments, same-day funding keeps cash flowing without the delays of Net 30.
Truly Instant Funding (powered by OTR Solutions)
OTR Solutions recently launched Truly Instant Funding, the industry's most advanced factoring solution. This technology reviews invoices automatically and delivers payment within minutes of approval, 24 hours a day, 365 days a year.
With Truly Instant Funding, there are no cutoff times and no waiting for bank transfers. You can access your money through the OTR Mobile App whenever you need it. Unlike Quick Pay programs that some brokers offer, this puts you in control of when and where funds are transferred.
How to transition away from Net 30
Moving away from Net 30 payment terms takes some planning, but the process is straightforward. Start by reviewing your current broker relationships and identify which ones consistently pay slowly or stretch payment terms. These relationships cost you the most in delayed cashflow and should be your priority for change.
Next, consider factoring your invoices through a provider like OTR Solutions. With True Non-Recourse Factoring, you get paid same-day and eliminate collection headaches. For carriers dealing with detention pay delays, factoring provides an additional benefit by getting you paid quickly even when loads run into unexpected wait times. Use digital tools like the OTR Client Portal to monitor invoice history and payment status, giving you visibility into your receivables for better business decisions.
Steps to get started:
- Review broker relationships for slow payers
- Start factoring loads with a trusted provider
- Use the OTR Mobile App to track payments
- Plan cashflow around faster funding timelines
Get paid faster with OTR Solutions
If you want to know why Net 30 is bad, just look at the unnecessary cashflow strain it causes for carriers. Waiting a month for every payment slows your business, adds financial risk, and puts you at a competitive disadvantage against carriers with quicker access to capital.
OTR Solutions offers a better path forward. With True Non-Recourse Factoring and Truly Instant Funding, you can access your money in minutes. Plus, the OTR Fuel Card adds average savings of $0.50 per gallon, and fuel credit options are available when paired with factoring services. Stop waiting on Net 30 and keep your trucking business moving forward.
Get Started with OTR Solutions
Frequently Asked Questions
What does Net 30 mean in trucking?
Net 30 means you get paid 30 days after delivery. Brokers and shippers use this payment term to manage their own cashflow, but it creates significant delays for carriers waiting on earned income.
Why is Net 30 bad for carriers?
Net 30 delays payments, causes cashflow gaps, and increases the risk of late or missed payments. Carriers must cover fuel, maintenance, and driver pay upfront while waiting a month for broker payments to arrive.
How can I avoid Net 30 payment terms?
Use a factoring company or instant funding provider that pays you as soon as invoices are approved and processed. OTR Solutions offers same-day funding and Truly Instant Funding through the OTR Mobile App.
What is the difference between Net 30 and Truly Instant Funding?
Net 30 means waiting a month for payment after delivery. Instant funding means getting paid within minutes of invoice approval, available 24/7 through providers like OTR Solutions.
Does OTR Solutions offer instant funding?
Yes. OTR Solutions offers Truly Instant Funding, allowing carriers to access money within minutes of invoice approval through the OTR Mobile App. This service is available 24/7, every day of the year.
