When you haul a load, the job’s not really done until the invoice is paid. That piece of paper — or digital doc — represents more than just a number. It’s your business lifeline, covering fuel, maintenance, time, and payroll.But in trucking, payments don’t always come fast. Waiting 45+ days for payment can stretch your cash flow thin and slow your momentum. That’s why understanding how your invoices impact your finances is just as important as knowing how to shift gears.
In this article, we’ll explore how trucking finance affects your daily decisions, how factoring can turn unpaid invoices into fast cash, and why knowing your numbers is key to running a smarter, more profitable operation.
It All Starts with the Invoice
Every load you haul ends in an invoice — and that document tells a story. It spells out your freight rate, may include detention fees, and often lists accessorial charges like fuel surcharges or handling. It also outlines your net terms, which determine how long you’ll wait to get paid — typically Net 30, 45, or even 60 days.
Understanding how all these elements come together is essential.
Why? Because that invoice reflects the money you’ve already earned — but won’t have in your account for weeks. And when bills, payroll, and repairs don’t wait, delayed payments can seriously strain your cash flow.
Factoring: Turning Invoices into Cash Flow
That’s where freight factoring comes in.
Factoring lets you sell unpaid invoices to a factoring company — like Summar — and receive most of your payment upfront. No more waiting weeks to get paid.
Here’s how it works:
- You deliver the load.
- You send your invoice, BOL, and rate confirmation to the factoring company.
- You get an advance — typically 85–98% of the invoice.
- Once your broker pays, you receive the remaining amount, minus a small factoring fee.
It’s simple, fast, and keeps your business moving when cash flow is tight.
But here’s the thing: not all factoring is the same. To choose the right factoring partner, there are a few key things to keep in mind.
There are two main types of factoring:
- Recourse factoring: If your broker doesn’t pay, you’re still responsible for the invoice.
- Non-recourse factoring: The factoring company takes on the risk — if your broker doesn’t pay, you’re protected.
Non-recourse factoring offers more peace of mind, especially if you’re working with new or less established brokers. At Summar, we take that one step further with our credit guarantee, giving you an extra layer of protection and reliability. Read more here.
Fees, advance rates & what to expect
Like any financial service, factoring comes with a factoring fee — usually between 1% and 5% of the invoice. This depends on factors like your broker’s credit rating, your monthly invoice volume, and how quickly your brokers typically pay.
Your advance rate — the portion you receive up front — can reach up to 98%. That means nearly immediate access to the money you’ve already earned, giving you more flexibility to fuel up, take more loads, and stay ahead of your expenses.
For truckers operating under long net terms, factoring is a game-changer.
Brush up on the fundamentals
Download our free Trucking Term Guide—a quick, easy reference packed with the essential definitions for carriers and owner-operators. From equipment terms and logistics to safety rules and financials, it’s designed to help you run smarter, not harder.
Managing Cash Flow Like a Pro
Getting paid faster is a great first step — but what you do with that cash is what truly sets your business apart. The goal? Plan for growth, not just survival.
Start by building a budget that covers your essentials: fuel, maintenance, payroll, and unexpected repairs. Then, think beyond the basics. Use tools that help you save money and run smarter, like:
- Fuel cards that offer rebates and track spending
- TMS platforms to optimize your routes and reduce empty miles
But, most importantly, always know your true cost per mile. Understanding that number helps you avoid low-paying loads that eat into your margins. Instead, you’ll book freight that actually makes sense for your bottom line.
These habits don’t just help you stay afloat — they create financial stability and give you the confidence to take on more, expand, and build a business that lasts.
Keep Your Cash Flow Rolling
At Summar Financial, we’re not just another factoring company — we’re a true financial partner for truckers and carriers looking to grow.
✔️ Same-day payments — because cash flow can’t wait.
✔️ Fuel advances, credit checks, and back-office support.
✔️ Access to tools like a fuel card with rebates and a free TMS.
✔️ And a team that truly gets the trucking business — because we’re built for it.
Your invoice represents hard-earned income. We make sure you get it — quickly, securely, and on your terms.
Talk to our team to see how factoring with Summar can help you roll stronger, every mile of the way.