TRUCKSMARTER RESOURCES
Freight
Factoring 101
If you’re new to factoring or just new to TruckSmarter Factoring, you’re in the right place.
Freight factoring companies, or factoring companies for trucking, help truck drivers and owner-operators get paid for their loads faster than working directly with the broker.
A factoring company purchases the right to collect the full amount of your invoice from the broker for a fee. In return they pay you for the load right away and take on the work to invoice and collect from the brokers.
As your factoring company, we pay you instantly upon approval of your uploaded rate con and POD, including on weekends and holidays.
When a bank loans money, they will accrue interest on that loan. We do not. We charge a flat rate to give you access to 97.5% of your money nearly instantly.
Non-recourse factoring means that you, the driver, are protected in the event a broker cannot pay out on an invoice. This protection varies by factoring company, so make sure to read your Terms of Service carefully so you know what you are protected against and what you are not.
TruckSmarter Factoring is non-recourse. If a broker is unable to pay for a load before paying TruckSmarter, you’re protected from collections and credit risk. However, you are responsible if your invoice is inaccurate, incorrect, or disputed.
Your funds are FDIC-insured up to $250,000 through Blue Ridge Bank, N.A.; Member FDIC.
To get paid for a load with a factoring company, you’ll provide the paperwork for that load (rate con and POD) and the factoring company will pay out the load into your bank or checking account.
For TruckSmarter Factoring, you’ll upload your paperwork to the app, we generate your invoice, and we deposit your money instantly upon approval of your paperwork into your fee-free FDIC-insured checking account,* including weekends and holidays! You can then access and spend your money instantly with your TruckSmarter Visa Card or transfer money into another account free of charge.
**Your funds are FDIC-insured up to $250,000 through Blue Ridge Bank, N.A. or Thread Bank, Members FDIC.
If you’re already in a contract but want to know if TruckSmarter Factoring is the best solution for you, contact us! One of our team members in Chicago will reach out to help you with the transition process. In some cases, we are able to buy out your contract.
Once your buyout agreement has been settled, you will receive a letter of release from your former factoring company and can sign up for TruckSmarter Factoring in the app.
Call or text (404) 738-7125 or email factoring@trucksmarter.com.
You can also reference our step-by-step guide for transitioning out of your existing factoring contract.