About Factoring Companies


Tadmore has learned that factoring companies are very different, depending on "who" you are (ie, the broker or the carrier). Factoring companies also differ in how they charge, when they charge, how they process the bills carriers send

Here we attempt to share a Tad More information, in hope of helping carriers:

  1. Ask the right questions of your factoring company. 
  2. Get paid faster. 
  3. Minimize fees 


From Where We Sit

** These observations are not meant to be formal research. Please consider the information presented here and use it to better question and understand your Factoring Company. You’ll find both "formal policies" and casual loopholes that we notice as a Broker, dealing with the other side of factoring companies.

Know the Clock

Ask your factoring company, “When does the clock start and stop?” You can avoid fees and get paid faster by understanding how your factoring company operates. 

Legally, the 30-day clock starts upon receipt of your Invoice to the company paying you. The more companies involved, the more days it can take. Ask factoring company, “Once I email my Invoice and clean BOLs to you, when do you email it to the broker/shipper?” Is it 24 hours? Is it 48?

Example: So if it takes 6 days to get it out of the truck, invoice prepared, scanned and emailed (or snail mailed) to your factoring company, and then it takes a few days for them to get it to us (or shipper or other factoring company), you as a carrier can be at 40 days pretty quickly.


Know the Accepted Documents 

Ask the factoring company, “Do you accept scanned documents or only paper originals?” We have found that some factoring companies allow scanned, but don’t start the clock until they receive the originals. Ask the Broker, “Are you set up to accept SCANNED documents from this factoring company?” to make sure they have requested SCANNED documents, not paper originals. We have tracked down invoices and been told by the factoring company that “while we have the scanned documents, we’ve not received the originals” and “the default "setting" is paper originals, so once we receive them from the carrier, we mail them to you (broker).” As the broker, we can request that scanned documents are acceptable to us. This saves you days. Find out what the requirements are. Ask the factoring company to copy you on the emailed Invoice to the broker/shipper so you know when we (broker/shipper) received it. This is when the 30 days to pay starts.


Know the Process 

Many larger factoring companies are offering user portals. Our experience with these is good since documents are time-stamped when updoaded to the system. 

If you are snail-mailing to your Factoring company's location address or PO Box...be aware! Your invoices and BOLs/PODs can sit in Mail Box for days until someone picks them up. Consider the many ways pick-up can be delayed...holidays, weather emergencies, time off, funerals, etc. What date does the factoring company use when inputting your invoice into their system? Delivery Date? Date on Invoice? Post mark? Date they received or input? There can be many days difference between these.