Freight Broker Factoring & Financing
Pay carriers now on loads that shippers won’t settle for another 30-60 days.
Let's fund your logistics & freight brokerage business.
Two questions to start. No obligation, no credit pull.
What is freight broker factoring?
Freight broker factoring converts shipper invoices into cash so a broker can pay carriers quickly while the shipper's payment terms are still running. It funds quick pay to carriers without the broker absorbing the whole timing gap, and availability grows as load volume grows.
The cash flow challenge for freight brokers and logistics companies.
Freight brokers and third-party logistics companies are often caught in the middle: carriers expect prompt payment to keep hauling, while shipper invoices run on standard net terms. Financing lets you pay carriers fast without starving your own cash flow.
A freight broker sits in the middle of a timing mismatch by design: carriers expect quick pay, often within days, to keep hauling, while the matching shipper invoice runs on standard 30 to 60 day terms. Offering quick pay to carriers is frequently a competitive necessity, not an option, since carriers can choose brokers who pay them faster.
Growing load volume makes the mismatch worse before it makes it better. Each new load means fronting another carrier payment before its matching shipper invoice is collected, so a broker scaling up fast can end up more cash-constrained than one holding steady, even as revenue climbs. Advancing cash against the shipper receivables funds the carrier side of that equation without the broker absorbing the full timing gap out of its own reserves.
How receivables financing works for freight brokers and logistics companies.
- You book the load with a shipper and a carrier hauls it.
- The carrier delivers and sends you its paperwork, and you invoice the shipper.
- You pay the carrier quickly, often within days, using cash advanced against the shipper's invoice.
- When the shipper settles, the balance is released to you, minus our fee.
Who pays you, and when.
A broker has two sets of counterparties on every load. Shippers pay on terms, commonly net 30 or net 45, and larger shippers often route invoices through a freight payment or audit service that adds processing time. Carriers on the other side increasingly expect fast pay, and many will take their capacity to another broker if payment is slow.
Because a broker earns the difference between what a shipper pays and what a carrier is paid, every day of timing mismatch is capital the broker has to carry. One large shipper paying late can affect payments to several carriers at once.
Common pressure points.
Carriers want quick pay; shipper invoices run 30-60 days behind that.
Growing volume means fronting more carrier payments before the matching shipper invoices are collected.
A single slow-paying shipper can back up payments to multiple carriers at once.
What the funding pays for.
- Quick pay to carriers on delivered loads
- Payroll for dispatchers, account managers, and carrier sales staff
- Load board fees and transportation management software
- Insurance and the bond required to operate as a broker
- Funding growth into new lanes and new shipper accounts
Choosing between factoring, a line of credit, and payroll funding.
Invoice factoring is a common fit for brokers. Each shipper invoice converts to cash, which funds the matching carrier payment, and you can choose which shippers to include.
An A/R line of credit suits brokers with steady shipper accounts and growing volume, since availability follows your receivables as loads and invoices increase.
Payroll funding is seldom needed for brokerage, because a load is billable once it is delivered.
What to have ready.
- A current accounts receivable aging report
- Shipper invoices with the bills of lading or proof of delivery behind them
- A list of the shippers you serve, with payment terms
- Your carrier payment schedule and typical weekly carrier payables
- Your broker authority and bond details
Freight broker factoring questions, answered.
Can this fund quick-pay to carriers specifically?
Yes. Advancing cash against your shipper receivables is commonly used to fund fast carrier payments, which is often a competitive requirement in freight brokerage.
Does growing volume strain the facility?
Availability follows your eligible shipper receivables, so it can grow as your load volume and invoicing grow, within your approved limit. Heavy reliance on one shipper is reviewed, so tell us if a single customer makes up most of your volume.
Do I have to offer quick pay to carriers?
No, but many carriers expect it, and brokers that pay in days often win better capacity. Financing lets you make that choice without carrying the full timing gap yourself.
How are shipper invoices reviewed before they are funded?
We review the shipper named on the invoice and confirm the load was delivered and billed correctly, which is why proof of delivery and a clean invoice matter.
Can I finance only the shippers that pay on longer terms?
Most arrangements let you choose which invoices to submit, so you can finance shippers on longer terms and collect from faster payers directly.
What if one large shipper makes up most of my volume?
A strong shipper can support financing well, though heavy reliance on one payer is something we review, since your cash flow then depends on a single payment date.
How quickly can freight brokers and logistics companies get funded?
Setup often takes days. After that, a shipper invoice with proof of delivery can be funded as fast as the same day, in time to pay the carrier quickly.
Businesses with similar cash flow patterns.
Other industries we finance.
- Transportation & Trucking
- Manufacturing
- Wholesale & Distribution
- Staffing & Recruiting
- Printing & Packaging
- Business & Professional Services
- Technology & IT Services
- Security Services
- Janitorial & Facility Services
- Oilfield & Energy Services
- Healthcare & Medical Staffing
- Food & Beverage
- Import & Export
- Telecommunications
- Warehousing & Fulfillment
- Marketing & Advertising
- Government Contractors
Ready to fund your business?
Tell us about your company and we'll get in contact with you to discuss next steps. There is no cost or obligation to get started.