Trucking Factoring

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Factoring companies for trucking buy your unpaid freight invoices, advance you most of the amount now, and collect the full payment from your broker or shipper later.

Simplex Group offers non-recourse freight factoring through our partner, OTR Solutions: you upload your load paperwork in the OTR Solutions app, and once delivery is verified, funds go out by wire, ACH, or fuel card.

Trucking: What is Freight Factoring?

How does trucking factoring work?

Trucking factoring is the sale of a freight invoice, not a loan. The Uniform Commercial Code treats it as a sale of accounts, and once you sell an invoice you keep no legal or equitable interest in it. In our program, a load moves through these steps:

  • Collect the paperwork. After delivery, gather the rate confirmation, the bill of lading, and any other documents for the load.
  • Upload it. Send the documents through the OTR Solutions app. It is done online and takes a few minutes.
  • Delivery is verified. The factoring company confirms the load was delivered.
  • You get paid. Choose wire transfer, ACH, or a fuel card. Some funding options pay the same day.
  • The factor collects. Your broker or shipper pays the factoring company directly when the invoice is due.
  • The reserve comes back. After the customer pays, the factor deducts its fee, closes the invoice, and returns the remaining balance, called the reserve, to you.

Your customers will know you factor. Under UCC 9-406, once a broker receives a notice that the invoice was assigned, it can only clear the debt by paying the factoring company, not you. Our guide to truck factoring for owner-operators covers the notice of assignment, UCC-1 filings, and switching factors in detail.

Recourse vs non-recourse factoring

The difference is who absorbs an invoice that never gets paid. With recourse factoring, the unpaid invoice comes back to you and you repay the advance. With non-recourse factoring, the factoring company carries that loss for the events the agreement covers.

Our program is non-recourse, so you can take on customers with less worry about a broker that never pays. Whatever factor you use, read which events its non-recourse terms cover and how it handles a disputed or short-paid load.

An honest caveat. Non-recourse is a contract term, not a legal standard. FMCSA’s rules do not mention it and Article 9 of the Uniform Commercial Code does not define it, so the agreement you sign decides your protection.

How to compare factoring companies for trucking

The best factoring company for trucking is the one whose terms fit your loads and your customers, so compare offers on the same questions. Price each quote in dollars on your average load, not as a percentage.

Ask aboutWhy it matters
Advance, fee, and reserveTogether they decide how much cash you get at funding and how much comes back after the customer pays.
Recourse termsShows whether an unpaid or disputed invoice comes back to you.
Funding methods and timingWire, ACH, and fuel card options can pay on different schedules.
Minimums, term, and exitVolume requirements and termination terms decide how easily you can scale down or switch factors.
Customer credit checksKnowing a broker’s payment record before you book a load protects your cash flow.
Portal and reportingYou should be able to see every invoice, payment, and reserve balance yourself.
Questions to ask any trucking factoring company before you sign

Do you need a factoring company near you?

Not usually. Paperwork is uploaded online and funds move by wire, ACH, or fuel card, so a factor’s terms matter more than its address. That holds whether you run out of Phoenix, Portland, Memphis, or anywhere in California.

Who factoring fits, and the broker risk it covers

Factoring fits carriers that bill brokers and shippers under their own authority and wait weeks to be paid. If you are an owner-operator leased to a carrier, the carrier bills the load, and 49 CFR 376.12(f) requires your lease to pay you within 15 days after you submit the delivery documents.

Brokers are where payment risk sits, and federal rules give carriers some protection:

  • Broker bond. Every broker must keep a $75,000 surety bond or trust fund in effect, which pays shippers or motor carriers if the broker fails to carry out its contracts (49 CFR 387.307). Since January 16, 2026, a payment that drops the bond below $75,000 triggers an FMCSA notice that the broker’s authority will be suspended within 7 business days unless it is restored.
  • Broker records. Brokers must keep a record of each load, including freight charges collected and the date they paid the carrier, for three years, and each party to the transaction has the right to review it (49 CFR 371.3).
  • Fraud. FMCSA advises confirming a broker’s phone number in SAFER before you haul, and if someone uses your company’s identity, telling your insurer, your load boards, and your factoring company. See our guide to avoiding freight fraud.

Rates and capacity also change how long cash sits in receivables. Our trucking capacity and freight rates guide covers what is moving the market in 2026.

What our factoring program includes

We partner with OTR Solutions to factor for new and established carriers. Here is what you get through Simplex:

  • Non-recourse factoring, so the payment risk on covered invoices sits with the factor, not with you.
  • The OTR Solutions app and portal to upload paperwork and track the status of every invoice and payment.
  • Funding by wire, ACH, or fuel card, including same-day options.
  • Regular reports and analytics on how your customers pay, so you can decide who to keep hauling for.
  • Customer credit checks from our freight planning team, which also plans lanes and rates around the regions you want to run.

Factoring sits next to the rest of your back office. If you are just starting, our trucking authority packages get your USDOT number, MC authority, BOC-3, and UCR filed, and our trucking insurance team handles your coverage.

To get started, use the form below, choose Factoring, and tell us how many trucks you run and who you haul for. We will review your documents and set up your account.

Frequently asked questions

What do factoring services for trucking companies do?

They buy your unpaid freight invoices, advance you most of the invoice amount, collect from your broker or shipper, and return the remaining reserve minus their fee once the customer pays. It is a sale of your invoices, not a loan.

How do I find the best factoring company for trucking?

Compare offers on the same terms: the advance, fee, and reserve in dollars on your average load, whether the program is recourse or non-recourse, funding options, minimums, termination terms, and whether you get customer credit checks and a portal to track invoices.

Do I need a trucking factoring company near me?

Usually not. Factoring is handled online: you upload the rate confirmation and bill of lading, and funds arrive by wire, ACH, or fuel card.

Is Simplex factoring recourse or non-recourse?

Non-recourse. We partner with OTR Solutions, and the payment risk on covered invoices sits with the factor rather than with you. Your agreement spells out exactly which events are covered.

Sources

The rules on this page come from these official sources, checked on October 5, 2026. Each state enacts the Uniform Commercial Code with its own changes; the text linked here is the uniform version.

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