Selling your invoice at a discount to get paid now instead of in thirty days.
A factor advances most of the invoice within a day or two and takes a fee, commonly two to four per cent, sometimes more for small fleets. Recourse factoring means you owe the money back if the broker never pays; non-recourse shifts some of that risk.
Around seventy per cent of small carriers factor, because fuel and payroll are weekly and broker terms are monthly. It is expensive money, and it is often the difference between operating and not.
Related
Inteleri works out what a load actually pays you once things like this land. See how it works.