High Direct Deposit/ACH Fees – Factors may charge upwards of $10 per ACH. Tiered Rates – Added fees based on how long the customer or broker takes to pay the invoice. Traditional factoring fees across the industry include but are not limited to: We have put together a list of common additional fees that we have come across when studying our competitors. These fees can add up quickly and have a major impact on the effective rate that you are paying for. Many factoring companies will also charge various “additional fees” on top of the factoring percentage to help advertise a lower upfront rate. We notify your brokers when you tell us to!įactoring companies charge a percentage of the invoice amount for their services. Step 4: Depending on the invoice factoring company, the carrier can pick and choose which brokers or shippers they’d like to factor and continue to maintain direct relationships with the customers that they don’t.
At OTR Solutions, we offer different types of funding options including direct deposit, bank wire, fuel card, and BOLT (funding within minutes). Step 3: The factoring company then pays the carrier on their invoice the same day/next-day depending on the carrier’s preferred funding option. Step 2: The factoring company audits the submitted invoice, notifies the carrier of any issues, and submits the invoice to the broker/shipper for payment. This gives you more time to hop on the next load instead of having to invoice multiple different customers directly. Once the load is delivered, the driver submits the Rate Confirmation, signed Bill of Lading (BOL), and any additional load documents to their factoring company. Step 1: A trucking company books a load through a freight brokerage or direct shipper. Even though factoring is common inside the trucking industry – the process can become complicated, so we’ve provided a visual to help walk through it.
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