TRUCKSMARTER RESOURCES

Freight


Factoring 101

If you’re new to factoring or just new to TruckSmarter Factoring, you’re in the right place.


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freight factoring foundations

freight factoring foundations

factoring foundations

What is freight factoring?

What is freight factoring?

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.

How does freight factoring work?

How does freight factoring work?

Freight factoring companies pay you quickly to ensure you have working capital for your trucking business. Instead of waiting the standard 30 days for a broker to pay you for a delivery, a factoring company buys your invoice and pays you directly in a much shorter period of time.

In exchange for a quicker payout and the work involved with processing your invoices with the broker, these companies will take a percentage of the invoice as a fee. For TruckSmarter, that percentage is 2.5% – among the lowest in the industry and a flat rate no matter how many trucks you operate or how often you invoice.

We pay out instantly upon approval of your paperwork, and our team invoices and collects money from the broker so you can move on with your day.

Freight factoring companies pay you quickly to ensure you have working capital for your trucking business. Instead of waiting the standard 30 days for a broker to pay you for a delivery, a factoring company buys your invoice and pays you directly in a much shorter period of time.

In exchange for a quicker payout and the work involved with processing your invoices with the broker, these companies will take a percentage of the invoice as a fee. 

For TruckSmarter, that percentage is 2.5% – among the lowest in the industry and a flat rate no matter how many trucks you operate or how often you invoice. We pay out instantly upon approval of your paperwork, and our team invoices and collects money from the broker so you can move on with your day.

How is this different from a bank loan?

How is this different from a bank loan?

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.

What is non-recourse factoring?

What is non-recourse factoring?

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.

How is factoring different from Quick Pay?

With Quick Pay, you get paid from the broker usually within a few days. The purpose and priority of Quick Pay is solely to get you your money faster. You are still responsible for invoicing the broker. Quick Pay options vary by broker, so the rate you pay, the speed at which you get paid, and the process for getting paid will differ. Some brokers do not offer quick pay options and can take 30 days or more to pay you.

If you work with a factoring company, the rate, speed, and process for submitting paperwork and getting paid stays the same, so you know what to expect every time.

With TruckSmarter Factoring, you not only get paid faster, but you get additional benefits, including:

• Invoice generation: just upload your paperwork and we’ll generate and submit your invoice

• Consolidated payments from brokers

• Easy access to all pending and paid invoices

• Info about the brokers you’re working with

• Quick and consistent communication in the event of a payment dispute

• High-yield FDIC-insured checking account*

• 1% cash back Visa Debit Card 

Your funds are FDIC-insured up to $250,000 through Blue Ridge Bank, N.A.; Member FDIC.

How is factoring different from Quick Pay?

With Quick Pay, you get paid from the broker usually within a few days. The purpose and priority of Quick Pay is solely to get you your money faster. You are still responsible for invoicing the broker. Quick Pay options vary by broker, so the rate you pay, the speed at which you get paid, and the process for getting paid will differ. Some brokers do not offer quick pay options and can take 30 days or more to pay you.

If you work with a factoring company, the rate, speed, and process for submitting paperwork and getting paid stays the same, so you know what to expect every time.

With TruckSmarter Factoring, you not only get paid faster, but you get additional benefits, including:

• Invoice generation: just upload your paperwork and we’ll generate and submit your invoice

• Consolidated payments from brokers

• Easy access to all pending and paid invoices

• Info about the brokers you’re working with

• Quick and consistent communication in the event of a payment dispute

• High-yield FDIC-insured checking account*

• 1% cash back Visa Debit Card 

How do I get paid?

How do I get paid?

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.; Member FDIC.

What if I am already in a factoring contract?

What if I am already in a factoring contract?

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.

Have questions? We're here.

Our Factoring Team in Chicago is ready to help.
Call or text (404) 738-7125 or email factoring@trucksmarter.com.
Monday–Friday 10:00am–6:00pm CT

Have questions? We're here.

Our Factoring Team in Chicago is ready to help.
Call or text (404) 738-7125 or email factoring@trucksmarter.com.
Monday–Friday 10:00am–6:00pm CT

the TruckSmarter
Factoring team

Our Factoring Team in Chicago is ready to help.
Call or text (404) 738-7125 or email factoring@trucksmarter.com.
Monday–Friday 10:00am–6:00pm CT

Have questions? We're here.

Our Factoring Team in Chicago is ready to help.
Call or text (404) 738-7125 or email factoring@trucksmarter.com.
Monday–Friday 10:00am–6:00pm CT

Have questions? We're here.

Our Factoring Team in Chicago is ready to help.
Call or text (404) 738-7125 or email factoring@trucksmarter.com.
Monday–Friday 10:00am–6:00pm CT

TruckSmarter Logo Asphalt Grey Footer

TruckSmarter is a financial technology company and is not a bank. Banking services are provided by Blue Ridge Bank, N.A, Member FDIC. Deposits are FDIC-insured through Blue Ridge Bank, N.A., Member FDIC. The TruckSmarter Visa Debit Card is issued by Blue Ridge Bank, N.A., Member FDIC, pursuant to a license from Visa USA Inc. Your funds are FDIC insured up to $250,000 through Blue Ridge Bank, N.A.; Member FDIC.

*Terms and conditions apply to the TruckSmarter cash back rewards program. Please see Program Terms for details.

TruckSmarter Logo Asphalt Grey Footer

TruckSmarter is a financial technology company and is not a bank. Banking services are provided by Blue Ridge Bank, N.A, Member FDIC. Deposits are FDIC-insured through Blue Ridge Bank, N.A., Member FDIC. The TruckSmarter Visa Debit Card is issued by Blue Ridge Bank, N.A., Member FDIC, pursuant to a license from Visa USA Inc. Your funds are FDIC insured up to $250,000 through Blue Ridge Bank, N.A.; Member FDIC.

*Terms and conditions apply to the TruckSmarter cash back rewards program. Please see Program Terms for details.

TruckSmarter Logo Asphalt Grey Footer

TruckSmarter is a financial technology company and is not a bank. Banking services are provided by Blue Ridge Bank, N.A, Member FDIC. Deposits are FDIC-insured through Blue Ridge Bank, N.A., Member FDIC. The TruckSmarter Visa Debit Card is issued by Blue Ridge Bank, N.A., Member FDIC, pursuant to a license from Visa USA Inc. Your funds are FDIC insured up to $250,000 through Blue Ridge Bank, N.A.; Member FDIC.

*Terms and conditions apply to the TruckSmarter cash back rewards program. Please see Program Terms for details.

TruckSmarter Logo Asphalt Grey Footer

TruckSmarter is a financial technology company and is not a bank. Banking services are provided by Blue Ridge Bank, N.A, Member FDIC. Deposits are FDIC-insured through Blue Ridge Bank, N.A., Member FDIC. The TruckSmarter Visa Debit Card is issued by Blue Ridge Bank, N.A., Member FDIC, pursuant to a license from Visa USA Inc. Your funds are FDIC insured up to $250,000 through Blue Ridge Bank, N.A.; Member FDIC.

*Terms and conditions apply to the TruckSmarter cash back rewards program. Please see Program Terms for details.