If you’re in the trucking industry, you’ve probably dealt with brokers who take 30, 60, or even 90 days to pay your invoices. While waiting on payments, you still need to cover fuel, maintenance, insurance, and payroll. Slow payments create unnecessary stress and cash flow problems that can leave your trucking business struggling to stay afloat.

This is where freight factoring comes in. Instead of waiting for brokers to pay, a factoring company buys your invoices and pays you immediately—helping you maintain a steady cash flow and keep your trucks on the road.

In this blog, we’ll explore why brokers take so long to pay, how factoring works, the benefits of factoring, and why Transportation Management Group (TMG) is the right partner to help you get paid faster.

Why Do Brokers Take So Long to Pay?

Freight brokers play a crucial role in connecting shippers with carriers, but they also introduce delays in payments. Here’s why brokers take so long to pay truckers:

Standard Payment Terms

Most freight brokers operate on Net 30, Net 60, or even Net 90 terms, meaning they have up to 90 days to pay their invoices. While this helps them manage their cash flow, it leaves truckers waiting far too long for their hard-earned money.

Slow Processing and Paperwork Delays

Even when brokers want to pay on time, delays happen due to paperwork issues, invoice disputes, or processing backlogs. A single missing document can push payment even further back.

Broker Cash Flow Issues

Some brokers wait until they get paid by the shipper before they pay you. If the shipper is late, it means you’re waiting even longer for payment.

Risk of Non-Payment

There’s always a risk that brokers default on payments or go out of business, leaving truckers scrambling to collect what they’re owed.

What Is Freight Factoring and How Does It Work?

Freight factoring is a financial service that turns your unpaid invoices into immediate cash. Here’s how it works:

1. You deliver the load and send the invoice to your factoring company.

2. The factoring company pays you—usually within 24 hours.

3. The factoring company collects payment from the broker when it’s due.

4. You keep hauling loads without worrying about slow broker payments.

Recourse vs. Non-Recourse Factoring

• Recourse factoring: You are responsible if the broker doesn’t pay the invoice.

• Non-recourse factoring: The factoring company assumes the risk if the broker doesn’t pay.

By using freight factoring, truckers eliminate the stress of waiting on brokers, avoid bad debt, and keep cash flowing.

The Benefits of Using Factoring to Get Paid Faster

Immediate Cash Flow

No more waiting weeks or months for broker payments—factoring ensures you get paid within 24 hours.

Fuel Advances

Some factoring companies offer fuel advances, so you can cover fuel costs before delivering a load.

No More Chasing Brokers for Payments

Your factoring company handles collections, allowing you to focus on driving and growing your business.

Business Stability & Growth

Consistent cash flow means you can:

• Pay for fuel, repairs, and driver salaries on time

• Take on more loads without financial worries

• Expand your fleet and grow your business

According to FreightWaves, cash flow is one of the biggest challenges in the trucking industry, and factoring is one of the best solutions for overcoming it.

How to Choose the Right Factoring Company

Look for Low Rates & No Hidden Fees

Some factoring companies charge hidden fees, so always read the fine print. Choose a provider with transparent pricing.

Recourse vs. Non-Recourse

If you want to protect yourself from broker non-payment, consider non-recourse factoring.

Same-Day Funding & 24/7 Support

Look for factoring companies that offer same-day funding and 24/7 support, so you’re never left waiting.

Additional Perks

Some factoring companies offer:

• Fuel card discounts

• Tire and maintenance discounts

• Load board integrations

Common Myths About Freight Factoring

“Factoring Is Too Expensive”

Factoring fees typically range from 1-5%, which is often cheaper than taking out a business loan or using credit cards with high interest rates.

“It’s Only for Struggling Trucking Companies”

Even successful trucking businesses use factoring to speed up cash flow and grow their operations.

“You Lose Control Over Your Invoices”

With factoring, you still choose your loads and brokers—your factoring company just speeds up the payment process.

For more insights on trucking cash flow, check out this guide by DAT Freight & Analytics.

How TMG (Transportation Management Group) Helps You Get Paid Faster

Who Is TMG?

TMG is a trusted leader in freight factoring, helping truckers get paid fast and keep their businesses running smoothly.

Why Truckers Choose TMG:

Same-Day Funding – Get paid within 24 hours
No Hidden Fees – Transparent pricing with no surprises
Fuel Advances – Cover fuel costs before delivery
No Long-Term Contracts – Flexibility for owner-operators
24/7 Customer Support – Help whenever you need it

With TMG, truckers can eliminate slow broker payments, avoid cash flow gaps, and grow their business with confidence.

According to American Trucker, having a reliable factoring partner can make all the difference in keeping your trucking business profitable.

Conclusion: Stop Waiting – Get Paid Faster!

Slow-paying brokers shouldn’t hold your business back. With freight factoring, you can get paid immediately, cover your expenses, and focus on hauling more loads.

Ready to stop waiting on broker payments? Contact TMG today and start getting paid faster!