Factoring

A financing arrangement where a carrier sells freight invoices or receives payment advances before the customer pays.

Why It Matters

Factoring affects cash flow, payment timing and who is responsible for repayment or account funding.

What to Check

• Ask how factoring is funded, repaid or deducted from settlement.
• Confirm fees, cutoff times, declined-payment rules and weekend availability.
• Separate payment access from fuel savings; they are not the same claim.