No minimums
Pay only when you factor.
Owner operator factoring from the cab
One truck, one owner, and paperwork done from the driver's seat. Owner-operator factoring should be simple: photograph the paperwork, upload it, get paid. Here is how it works, what to look for, and when it isn't worth it.
Monthly invoices
See my factoring rateWe refer carriers to a factoring partner and may be paid for referrals.
MILE02WHEN IT DOESN'T FIT
When you don't need it
Start with the honest part. Factoring costs a share of every invoice, and some owner-operators are better off without it.
- You have a cushion. A month or more of fuel, insurance, payments and living costs saved makes the fee optional.
- Your customers pay fast. Direct shippers or brokers who pay in days, or offer cheap quick pay, cover the gap for less.
- Your margins are thin. On low-margin freight, a few percent of every invoice can be the whole profit.
- You're leased on. The carrier you're leased to handles invoicing and pays you on its schedule.
If none of those describe you, factoring is probably worth a look. The full decision is on is factoring worth it.
MILE03PHONE-FIRST WALKTHROUGH
Factoring a load from the cab
Step through how a load gets factored from a phone. These are EXAMPLE screens described in words, not any particular company's app.
FACTOR APP · EXAMPLE
STEP 1/5
Delivered
Receiver signs the BOL. You park somewhere safe.
MILE04CONTRACT BASICS
Contract basics for one truck
- Term. Month to month is best for a single truck. Long terms make it hard to leave if service slips.
- Minimums. Avoid monthly minimums. Owner-operators take weeks off; the agreement shouldn't punish that.
- Termination. Know the notice period and any fee. Get it in writing.
- Which invoices. Prefer agreements that let you choose which invoices to factor.
MILE05WHAT TO LOOK FOR
What to look for
Clear fee schedule
Every fee on one page: factoring, ACH, same-day, fuel advance.
Phone uploads
An app or email workflow that works from a truck stop.
Broker credit checks
A quick check before you book keeps you away from bad payers.
Fuel advances or a fuel card
Cash or discounts at the pump, if fuel is your first crunch.
Reachable support
Someone who answers when a payment is stuck.
MILE06FUEL ADVANCES
How fuel advances work
A fuel advance pays part of a load's rate when you pick up, so you can fuel for the trip before the invoice is funded. You usually need the signed rate con first. The advance is subtracted when the invoice is factored, and some factors charge a fee for it.
If fuel is the first cash crunch of every trip, an advance can help. If it isn't, skip the fee. More on fuel cards and advances on fuel advance factoring.
MILE07AN EXAMPLE WEEK
One week of factoring, one truck
An EXAMPLE owner-operator runs three loads in a week for three different brokers and factors all three at a 3% flat fee with a 95% advance. Instead of waiting a month for $4,200, about $3,990 arrives within a day or two of each delivery. The fees for the week come to $126, and the reserves arrive as each broker pays.
WEEK OF INVOICES
EXAMPLE
- 3 invoices
- $4,200
- Advances (95%)
- $3,990
- Fees (3%)
- -$126
Total to you$4,074
MILE08PAPERWORK FROM THE CAB
Paperwork habits that get you paid faster
Most funding delays come down to paperwork, and most paperwork problems start at the dock. A few habits fix nearly all of them.
- Check the BOL before you leave the shipper. Count the pieces, check the weight and write any problem on the paperwork before you sign. A clean pickup BOL prevents most disputes later.
- Get every signature at delivery. Receiver's signature, printed name and time on every page and every stop. Don't drive off without it.
- Photograph immediately. Take the photos before you leave the dock, while you can still fix a missing signature.
- Upload the same day. Invoices uploaded at night often wait until the next business morning; uploads in the afternoon can fund sooner.
- Keep receipts with the load. Lumper, scale and detention paperwork goes in with the invoice so it's paid with it.
MILE09COMMON MISTAKES
Mistakes owner-operators make with factoring
Signing the first offer
Factoring quotes vary widely for the same carrier. Get at least two in writing.
Ignoring fixed fees
A per-transfer fee is small on a big invoice and expensive on a small one.
Factoring forever
Many owners factor while they build a cushion, then stop. Keep that option open.
Skipping broker checks
A factor's credit check takes a minute and can save a whole load's pay.
Losing track of reserves
Reserves are your money. Check that each one is released when the broker pays.
Mixing personal and business accounts
Factors pay into the account on file. A separate business account makes bookkeeping and taxes far easier.
MILE10WHAT IT COSTS
What it costs a one-truck carrier
Small carriers are usually quoted above the starting rates factors publish, because lower volume means fixed costs per invoice are spread over less money. On top of the percentage, look for transfer fees, same-day fees and fuel advance fees.
Do the math per invoice, not per month: add the percentage and every fixed fee that applies, then divide by the invoice. If the real rate on your typical load is higher than you expected, batching transfers and skipping same-day funding usually bring it down. See factoring rates for a line-by-line example.
MILE11DISPATCH
Loads and paperwork, handled
A factor gets you paid; it doesn't find you loads. Our dispatch desk does: we find and negotiate loads, check every broker, and bring each one to you to approve. The broker sends the rate con straight to you, which is also what your factor needs. See dispatch for owner-operators or start dispatch.
MILE12FAQ
Owner-operator factoring FAQ
Q01Should owner-operators use factoring?
If you haul for many brokers, run thin on cash between payments, or are just starting out, factoring often helps. If you have a month of costs saved or a few fast-paying customers, you may not need it. It's a cash-flow tool, not a requirement.
Q02Can owner-operators get fuel advances?
Many factors offer them: part of a load's rate paid at pickup, once the rate con is signed, so you can fuel for the trip. They may carry a fee, and the advance is deducted when the invoice is funded.
Q03Do leased-on drivers need factoring?
Usually not. If you're leased on to a carrier, that carrier invoices the brokers and pays you on its own settlement schedule. Factoring is for carriers billing brokers under their own authority.
Q04Do factoring companies check my credit?
Some do, but most care more about your brokers' credit, since the brokers pay the invoices. Factors also check your authority, insurance and safety record.
Q05Can I factor from my phone?
With most factors, yes. You photograph the signed rate con and BOL and upload them in an app or by email. Clear, flat, well-lit photos get funded fastest.
Q06Will factoring lock me in?
Only if the agreement does. Look for month-to-month terms, no minimums and no early termination fee. Those are reasonable asks for a one-truck carrier.
Q07Do weekends delay funding?
They can. Some factors fund on weekends and holidays; many don't, and brokers can't verify loads when their offices are closed. Ask before you sign if weekend cash matters to you.
Q08How much does owner-operator factoring cost?
It depends on the factor, your volume and your brokers. Expect a percentage of each invoice plus any fixed fees in the agreement. Single-truck carriers are often quoted above the starting rates factors publish, so compare total cost per invoice across at least two quotes.
Q09Can I stop factoring when I don't need it?
Yes, if your agreement allows it without a penalty. Month-to-month terms and no minimums make it easy to stop once you've built a cash cushion.
Q10Do I need a separate bank account?
It's strongly recommended. A business account for factoring payments keeps your records clean, makes taxes simpler and helps if a factor or broker ever needs to trace a payment.
See my factoring rate
We refer carriers to a factoring partner and may be paid for referrals.