Freight factoring has a reputation—some earned, much of it not. If you’re launching your first trucking company, you’ll hear opinions from every direction. Let’s separate myth from fact so you can decide with confidence.
Myth 1: “Factoring means I lose control of my business.”
Reality: A good factor gives you more control: broker credit checks before you book, clear timelines, and a dashboard that shows what’s funded, pending, or rejected. With Trucking Partners, the Client Portal and Mobile App keep your documents and payments visible in one place.
Myth 2: “Factoring is only for struggling carriers.”
Reality: New carriers use factoring to build momentum, not to cover up problems. When you’re waiting 30–45 days to get paid, turning invoices into same-day cash lets you fuel, take better loads, and grow. It’s a cash-flow tool—smart fleets use it even when they’re profitable.
Myth 3: “I’ll be locked in forever.”
Reality: Read the agreement. Look for a reasonable term, clear exit language, and fair buyout provisions. If a program won’t explain this plainly, that’s a warning sign. Trucking Partners earns the relationship with service, not handcuffs.
Myth 4: “Non-recourse means I’m never responsible.”
Reality: Non-recourse usually covers debtor non-payment for specific reasons (like insolvency), but it doesn’t cover paperwork errors or disputes about service. The best protection is clean documentation: accurate rate con, signed POD, and timely invoicing through the Client Portal.
Myth 5: “Banks or broker quick pay are always cheaper.”
Reality: Maybe, maybe not. Compare total cost to cash. If a bank line is slow or capped, missed loads cost more than a fair factoring fee. Broker quick pay might be fine with one broker, but if you run spot from different brokers weekly, one consistent factoring process often wins on both speed and simplicity—especially with instant payouts via Digital Wallet.
How to make factoring work for you
Credit first, then freight. Don’t haul for a questionable payer.
Submit clean packets. Use the Mobile App to capture a legible POD before you leave the dock.
Choose the right payout. Wallet > ACH > wire if you want speed without extra cost.
Watch your metrics. Days to cash, rejection rate, and reserve release—your portal puts this at your fingertips.
Bottom line: Factoring isn’t a magic wand or a trap—it’s a tool. Used well, it’s the shortest, least-stress path from load to cash for new carriers.
Want straight answers and a clear quote? Get started with Trucking Partners. Explore the tools that make it easy: Digital Wallet • Client Portal • Mobile App.