The freight market is constantly shifting, but 2024 and 2025 have brought some of the most challenging conditions in years. Trucking companies of all sizes are feeling the squeeze. Spot rates have dipped significantly, brokers are taking longer to pay, and the cost of doing business has skyrocketed.

For many small and mid-sized carriers, these challenges are more than just frustrating. They can be business-ending. That is where freight factoring comes in, not as a last resort, but as a strategic tool to keep your business moving when the market stalls.

In this article, we’ll break down how current freight market conditions are impacting carriers and explore how freight factoring helps create financial stability when it’s needed most. Learn how truckers are utilizing freight factoring for trucking growth. 

What Is Happening in the Freight Market Today?

To understand why more carriers are turning to freight factoring, it helps to know what is going on in the industry right now.

Spot Rates Are Under Pressure

Spot rates — the per-mile rates for one-time freight shipments — have dropped in many lanes. This is largely due to excess truck capacity, reduced consumer demand, and lower shipping volumes. Carriers who rely heavily on the spot market are now being forced to haul loads at lower profit margins, or in some cases, at a loss.

According to FreightWaves, spot rates in some regions are still sitting below operational breakeven points for owner-operators.

Brokers Are Slowing Down Payments

Broker payment delays are a growing issue. With tighter margins on their end, many brokers are stretching out their invoice payments. Carriers that used to get paid in 30 days are now waiting 45 or more. That wait can be devastating when you need cash for fuel, payroll, and repairs.

The Federal Motor Carrier Safety Administration (FMCSA) has noted a rise in broker complaints related to slow payment and double brokering.

Inflation and Fuel Costs Add to the Squeeze

Inflation is still affecting insurance premiums, truck maintenance, and overhead expenses. Meanwhile, fuel prices have remained unstable, particularly in the wake of global supply chain disruptions.

The U.S. Energy Information Administration reports diesel prices fluctuating around high historical averages, creating unpredictable costs for every run.

How Freight Factoring Helps Stabilize Cash Flow

Freight factoring offers a financial solution that gives carriers immediate access to funds from their outstanding invoices. Instead of waiting weeks or months for a broker to pay, a factoring company pays you upfront, usually within 24 hours of submitting the load paperwork.

But how exactly does that help when the market is volatile?

Immediate Access to Working Capital

Factoring eliminates the wait on broker payments. That means you can cover expenses like fuel, tolls, and maintenance without relying on credit cards, loans, or personal savings.

This kind of financial flexibility is crucial when spot rates drop and profit margins tighten. With predictable cash flow, you can plan better and avoid running into a funding gap between loads.

Keeps Your Fleet on the Road

If you’re constantly waiting on payments, you may have to turn down loads simply because you do not have the fuel money to pick them up. Factoring ensures you have consistent access to funds, allowing you to say “yes” to more opportunities, even in a slow market.

Some factoring partners even offer fuel advances, so you can get paid a portion of the invoice as soon as the load is picked up.

Frees Up Time and Back Office Resources

Beyond cash flow, factoring providers often handle invoicing, collections, and broker credit checks. This reduces your administrative burden and lets you focus on booking better-paying loads and keeping your drivers moving.

When the market is uncertain, time and focus become even more valuable assets. Freight factoring gives you both.