How it works
After delivering a load, the carrier submits the signed Bill of Lading and rate confirmation to the factoring company. The factor wires the carrier a percentage of the invoice (typically 95–98%) within 24 hours, holds the rest as a reserve, and collects the full invoice from the broker. The reserve is released when payment clears, minus the factoring fee.
Who uses it
Owner-operators and small-to-mid-size carriers who need cash flow faster than the broker's 30–90 day payment terms allow.
Why it matters
For small carriers, slow-paying brokers can break the business — fuel, payroll, and insurance don't wait 60 days. Factoring bridges the gap. The trade-off is the factoring fee (typically 1.5–5% depending on volume and contract type).
In Rig Terminal
Rig Terminal includes 24-hour factoring at a flat transparent rate with no long-term contracts and no minimums. Delivered loads flow from dispatch directly into the factoring queue, and funds land in your Rig business checking account the same day.
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