Factoring Benefits for Carriers

Starting a trucking business is no small feat. Carriers face numerous challenges, from fuel costs to driver wages, but one of the biggest hurdles is waiting for customers to pay invoices. Delays of 30, 60, or even 90 days can cripple cash flow, making it hard to keep trucks on the road. This is where invoice factoring comes in as a game-changer for new and established carriers alike.

What is Invoice Factoring?

Factoring is a financial solution where carriers sell their unpaid invoices to a factoring company for immediate cash. Typically, you receive 80-90% of the invoice value within 24-48 hours, with the remainder (minus a small fee) paid once the customer settles the invoice. This eliminates the waiting game and provides instant funds to cover operational costs.

Key Benefits of Factoring for Carriers

• Faster Payments: Get paid within 24–48 hours for completed loads, ensuring steady cash flow.
• Operational Stability: Cover fuel, maintenance, insurance, and driver wages without delays.
• Business Growth: Take on more loads and expand your fleet without worrying about unpaid invoices.
• Reduced Stress: Let factoring companies handle collections, so you focus on driving and growing your business.
• Fuel Card Benefits: Many factoring providers offer fuel cards with discounts, saving you money at the pump.

Why Factoring is Ideal for New Carriers

For owner-operators and small fleets just starting out, factoring provides the financial stability needed to compete in the trucking industry. Without a long credit history, new carriers often struggle to secure traditional loans. Factoring doesn’t rely on your credit score—instead, it’s based on your customers’ creditworthiness, making it accessible for startups. This allows you to take on larger contracts, build relationships with brokers, and scale your business without financial stress.

How to Choose a Factoring Partner

Not all factoring companies are created equal. Look for providers with transparent fees, high advance rates (80-90%), and additional services like fuel cards or load board access. Avoid long-term contracts that lock you in, and ensure the company has experience in the trucking industry to handle collections efficiently.

At GoTrucksy, we connect carriers with trusted factoring providers tailored to your needs. Our partners offer competitive rates, fast funding, and personalized support to keep your business moving forward. Whether you’re a new carrier or an established fleet, factoring can transform your cash flow and unlock growth opportunities.