Factoring is a service that aims to simplify and speed up payments for trucking companies. A factoring company will take your freight invoice, pay you within a couple of days, and handle the invoice processing and collections for you. As a service, factoring companies generally charge a percentage of the invoice total for their services.
Factoring isn’t required for trucking companies, but getting set up with a factoring company may be worth it for those who need/want payments quickly.