Truck invoice factoring includes a cash flow facility tailored to the needs of trucking companies and owner-operators experiencing long payment periods with brokers and shippers. Payment of invoices in the trucking industry may be done at 30, 60, or 90 days whereas fuel, driver salary, insurance, and maintenance along with tolls should be paid instantly. This time lag has the potential of subjecting profitable carriers to undue strain in its day to day activities.

Under truck invoice factoring, truck carriers assign their outstanding freight invoices to a factoring firm at the cost of access to quick working capital. After the load is dispatched and the invoice presented with evidence of delivery, the majority of the invoice value is disbursed within a very short time usually 24-48 hours. The rest is paid out once the broker or shipper has made payment less a small factoring charge.

Among the major benefits of truck invoice factoring is that it is not a loan. It does not require the use of collateral and does not put a debt on the balance sheet. A great number of factoring providers also provide other services like credit checks of the brokers, processing of invoices, collection services, and fuel card programs to assist carriers with minimizing risks and amount of administrative work.

Factoring of truck invoices helps stabilize cash flow enabling trucking companies to take more loads, make driver payments on time, maintain apparatus and make arrangements for operations in a steady stream. Even to small fleets, expanding carriers and owner-operators, it is a viable solution to remaining financially stable without off the road.