Factoring for new owner-operators

Updated October 2026

When you haul a load for a broker, you might wait 30 days or more to get paid. Meanwhile, fuel, insurance and your truck payment are due now. Factoring closes that gap: you sell your invoice to a factoring company, and they pay you most of it right away, usually within a day or two. They collect from the broker and keep a fee.

Things to compare

The fee and how it's charged. How fast you get paid. Recourse vs. non-recourse: with recourse factoring, you owe the money back if the broker doesn't pay; non-recourse covers some of that risk, usually for a higher fee. Contract terms: minimum volumes, long contracts and cancellation fees. Extras like fuel advances and broker credit checks, which help you avoid slow-paying brokers.

Is it worth it?

For many new carriers, steady cash flow is worth the fee, especially in the first months when there's no cushion. As your business grows and you build savings, you can decide whether to keep factoring every load or only some of them.

Run your numbers: How much truck can I afford?

Educational information only, not financial or legal advice. Lender requirements and terms vary.