Frequently Asked Questions

Freight factoring is a financial service where a trucking company sells its unpaid invoices to a factoring company in exchange for immediate cash. Instead of waiting 30-90 days for a broker or shipper to pay, you get paid the same day you deliver. The factoring company then collects payment from the broker when the invoice is due. It's not a loan — it's simply getting your money faster. Learn more about freight factoring →

At CHC Factoring, most payments are deposited the same business day you submit your paperwork. You deliver the load, send us the bill of lading and invoice, and we deposit the funds into your bank account — typically within a few hours.

Our rates start as low as 2% of the invoice amount. For example, on a $2,000 invoice at 2%, you'd receive $1,960 the same day. There are no hidden fees, no startup costs, and no reserve holdbacks. The factoring fee is the only cost.

No. Freight factoring is based on your customers' credit — the brokers and shippers who owe you money — not your personal or business credit score. If the companies you haul for are creditworthy, you'll likely qualify regardless of your own credit situation.

Non-recourse factoring means that if a broker or shipper fails to pay an invoice, you are not responsible for paying the factoring company back. CHC Factoring offers non-recourse factoring — we absorb the risk of non-payment so you don't have to worry about bad debt.

No. Factoring is not a loan. You're selling an invoice — an asset you already earned — in exchange for immediate cash. There's no debt to repay, no interest charges, and no monthly payments. It doesn't appear as debt on your balance sheet. See how factoring compares to bank loans →

No. There are no volume minimums or requirements. You can factor one invoice a month or all of them — it's entirely up to you. Some carriers factor everything for consistency. Others only factor when they need a cash flow boost.

Some factoring companies hold back 5-10% of each invoice in a "reserve account" as a buffer against disputes. CHC Factoring does not hold reserves. You receive the full advance minus the factoring fee, with no money held back in escrow.

Yes. If you're unhappy with your current factoring company's rates, service, or terms, we can help you transition. We'll review your existing contract, explain your options, and guide you through the switch. Many carriers don't realize they have more flexibility than they think. Contact us for a free review →

Yes. We work with new carriers, including those who just received their MC number. Factoring is especially useful for new trucking companies because it provides cash flow stability from day one — when you need it most.

To factor an invoice, you'll typically need to submit the signed bill of lading (BOL) and the invoice for the load. You can send these by email or snap a photo from your phone. The whole process takes about 2 minutes.

Fuel advances are cash you receive before completing a delivery to cover fuel costs for the load. This way you can keep your truck moving without dipping into your own funds or waiting for payment from a previous load.

The application takes about 2 minutes, and we can typically have your account set up and ready to factor within 24 hours. There's no cost to apply, no credit check on you, and no obligation.

No. There are no application fees, no setup costs, and no hidden charges. You apply for free, and the only ongoing cost is the factoring rate on invoices you choose to factor.