What is factoring in trucking?

Factoring is selling your invoices to a finance company at a small discount (1-5%) to get paid in 24-48 hours instead of waiting 30-60 days from the broker.

Factoring is selling your invoices to a finance company at a small discount (1-5%) to get paid in 24-48 hours instead of waiting 30-60 days from the broker.

Quick answer

Factoring is selling your invoices to a finance company at a small discount (1-5%) to get paid in 24-48 hours instead of waiting 30-60 days from the broker.

Why it matters in dispatch software

Dispatch Tool surfaces this concept where it matters: in load setup, settlements, or driver workflows. The goal is to keep operators compliant and paid without extra spreadsheets.

Frequently asked

Where do I learn more?

Browse our trucking guides and the rest of our answer library, or start a free Dispatch Tool trial to see how this works inside the app.