Factoring for Freight Brokers
Carriers factor to get paid faster. Brokers factor to pay carriers before the shipper pays them. Different product, different underwriting.
A freight broker's cash problem is the inverse of a carrier's. You owe carriers quickly — often on quick-pay terms — while shippers pay you on 30 to 60 day terms. Broker factoring funds that gap against your shipper receivables.
How it differs from carrier factoring
- Underwritten on shipper credit and on your operational controls, not on a BOL.
- Often bundled with carrier payment processing — the factor pays your carriers directly.
- Bond and authority requirements apply. Your BMC-84 status is part of the assessment.
- Concentration limits matter more. If one shipper is most of your book, that caps the facility.
- Higher scrutiny on double-brokering controls and carrier vetting.
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What to compare
Compare the all-in cost of the facility against what quick-pay discounts earn you. Many brokers factor specifically to fund carrier quick-pay, where the quick-pay discount they capture partly or fully offsets the factoring cost. Model both sides before deciding the facility is expensive.
The risk to price in
Your exposure is a carrier who is not paid claiming against your bond, and a shipper who does not pay leaving you funding both sides. Ask any prospective factor how carrier payment disputes are handled and who carries the loss when a shipper defaults after carriers have been paid.
How to read the blanks on this site
Every populated figure on this site was read from the company's own published pages, with the source and date attached. Where a cell says Not published, the company does not put that term in writing on its site — and in a market where the contract matters more than the headline rate, what a factor declines to publish is often the more useful signal. We never fill a gap with an estimate.