Freight factoring
Brokers commonly pay on 30-day terms or longer. Factoring turns a delivered load into cash much sooner, and TQS sends your paperwork straight to your factor so nothing sits.
Three steps from POD to paid.
Factoring means selling your load invoice to a factoring company. They pay you most of it up front, then collect from the broker.
- 01
You deliver
We collect the signed BOL, POD and rate confirmation and send them to your factor, usually the same day.
- 02
The factor pays you
The factor advances the invoice, less their fee, often within a business day or two depending on your agreement.
- 03
The broker pays the factor
Your notice of assignment tells the broker to pay the factor directly. You're already on your next load.
Two partners we work with.
We'll introduce you and help with setup. Terms, fees and approval are set by the factoring company, so compare before you sign.
What factoring costs you.
Enter one invoice and see the cash you'd get today, the fee, and how it compares with a broker's quick pay.
$
%
%
Share paid up front; the rest is held in reservedays
loads
%
Optional: compare with a broker's quick payCash in your account in a day or two$2,850
Factoring fee on this load−$90
Reserve paid when the broker pays$60
You keep in total$2,910
Factoring fees per month$720
Same load with broker quick pay$2,910
Getting paid 30 days early for 3.0% works out to roughly 37% a year if you think of it as a loan. Worth it when cash flow keeps your truck moving; worth comparing between factors.
Factoring terms, in plain English.
- Advance rate
- The share of the invoice paid up front. Some factors pay everything minus the fee right away; others advance part and hold the rest in reserve.
- Reserve
- The part of the invoice held back until the broker pays, then released to you minus the fee.
- Factoring fee
- The factor's charge, usually a percentage of the invoice. Some fees rise the longer the broker takes to pay.
- Recourse
- If the broker never pays, you owe the factor the advance back. Lower fees, more risk on you.
- Non-recourse
- The factor absorbs the loss if an approved broker goes out of business or can't pay. Read exactly what's covered; a dispute over the load usually isn't.
- Notice of assignment (NOA)
- A letter telling the broker to pay your factor instead of you. Brokers need it on file before they'll pay the factor.
- Fuel advance
- Part of a load's pay sent to you at pickup to cover fuel, deducted when the invoice is factored.
- Spot vs. contract factoring
- Spot factoring lets you pick which loads to factor. Contract factoring usually covers all your invoices for a set term.
- Broker credit check
- Your factor's rating of a broker's ability to pay. We check it before booking, so you don't haul for a broker your factor won't buy.
- Chargeback
- When a factor takes back money for an invoice that wasn't paid, or was short-paid. Common with recourse factoring.
Questions to ask any factor.
Factoring agreements differ a lot. These questions tell you what you're actually signing.
Recourse or non-recourse?
With recourse, you owe the money back if a broker doesn't pay. Non-recourse shifts some of that risk to the factor, usually at a higher fee.What's the real fee?
Ask for the percentage, any per-invoice or monthly minimums, and fees for same-day funding or wire transfers.How long is the contract?
Check the term, the notice needed to leave, and whether you must factor every load or can choose.What comes with it?
Fuel card discounts, fuel advances at pickup, broker credit checks and an online portal can be worth as much as the rate.
TQS is a dispatch company, not a lender. How partner services work
Set up factoring and dispatch together.
We'll introduce you to a factoring partner and set your paperwork to flow straight to them from your first load.
Or call the dispatch line(929) 717-5625