Factoring
Selling invoices to a factoring company for faster cash, usually with fees and approval rules.
Written and reviewed by LaneMath Editorial Team. Updated 2026-06-08. LaneMath pages are maintained as practical carrier education using public references, example-only math, and internal editorial review.
Carrier note
Use this term in context with the rate confirmation, broker communication, facility instructions, and billing paperwork. A short definition is useful, but the written load terms control the actual freight decision.
Carrier example
A carrier using a factoring company submits the invoice and delivery documents to the factor, which advances most of the invoice value quickly, then collects from the broker under the assignment notice.
Common mistake
Using the broker's quick-pay option on a load that is also enrolled with a factoring company — duplicate or conflicting billing can delay payment from both parties.
Paperwork note
Keep the factoring agreement, notice of assignment, load confirmation, BOL, POD, and settlement statements together so payment exceptions can be traced to the original load.
References and methodology
- Payment-risk editorial methodology - LaneMath Editorial Desk. Used for educational payment workflow discussion. It is not financial, legal, credit, or factoring advice.
- Industry terminology and editorial explanation - LaneMath Editorial Desk. Editorial explanations are not official guidance, legal advice, or market data.