Guide · Slow-paying brokers
Brokers pay me in 60 days — what’s the best working capital for a trucking company besides factoring?
If the only problem is a 60-day wait on money you have already earned, factoring is usually the right tool, and we offer it: 90–97% of the invoice the same day at 1.5%–3.5%. The best alternative is a revolving line of credit — $50,000 to $500,000, drawn in 24 hours and charged only on what you draw — open to carriers with 3+ power units, 24+ months of authority and $60,000+ a month in deposits. Working capital ($75,000–$750,000) fits a one-time lump, not a recurring 60-day gap.
A 60-day wait is a timing problem, not a size problem
The money is earned; it is just two months out. Meanwhile driver wages, fuel and insurance come due on their own schedule. Factoring solves timing: it converts the receivable to cash today. Working capital solves size: you need $40,000 now and no amount of accelerating receivables produces it. Taking a 12-month advance to cover a 60-day gap is the expensive way to buy time.
Your three options side by side
| Option | Who qualifies | Amount | Speed | How you pay |
|---|---|---|---|---|
| Invoice factoring | Any carrier with active MC/DOT and 1+ unit | 90–97% of each invoice | Same day on packets in by 1:00 PM ET | 1.5%–3.5% fee per invoice, taken when the broker pays |
| Line of credit | 3+ units (2 specialized), 24+ months, $60,000+/mo | $50,000–$500,000 limit | Draws in 24 hours | Weekly over 12–52 weeks per draw, on the drawn balance only |
| Working capital | 3+ units (2 specialized), 24+ months, $60,000+/mo | $75,000–$750,000 | Funds in 24 hours | Fixed daily or weekly ACH over 4–18 months |
What factoring a slow invoice actually costs
A factoring fee is charged per invoice, not per day. That is why we print the annualised figure most factors don’t: a 3% fee on a 30-day invoice is roughly 36% annualised, and on a 45-day invoice about 24%. The longer your broker takes, the lower the annualised cost of the same fee, so slow-paying brokers are where factoring compares best against a line.
The arithmetic on one load: a $2,800 dry van load at 3% with a 95% advance carries an $84 fee. You get $2,660 at funding, $140 is held in reserve, and $56 comes back when the broker pays, for $2,716 net. Rates run 1.5%–2.0% at $150,000+ a month on recourse, 2.0%–2.8% at $40,000–$150,000, and 2.8%–3.5% under $40,000 a month or on non-recourse.
Watch the recourse period. It is 90 days: if a broker has not paid a recourse invoice by day 91, it comes back to you. A broker who pays in 60 is inside that window, but one who drifts to 90 is not. Non-recourse adds 0.5%–1.0% and covers broker insolvency only, not a disputed load or a rate dispute.
When a line of credit beats factoring
- Your gap is occasional. An undrawn line costs nothing, with no maintenance fee and no unused-line fee. Factoring every load to cover two tight months a year pays the fee on every load.
- Your brokers already offer quick pay at around 1.5%. Factoring the same load pays twice for the same speed.
- You are sitting on 60+ days of cash. Then factoring is a cost with no return.
Not ready to factor everything? Spot factoring is available: you choose which invoices to submit, so you can factor only the slow brokers.
Running both
Most Track 1 fleets run both: factoring closes the broker gap, and a line or working capital covers what you cannot invoice for. Our factoring UCC-1 is filed on accounts receivable only, never as a blanket lien, and if you later move to an advance with us we subordinate or terminate it internally. We will not stack an advance behind another factor’s blanket lien.
Who funds what
Linehaul Capital is a direct lender. Working capital, lines of credit and invoice factoring are underwritten and funded in-house as the first path. SBA 7(a) and 504 loans, and bank term loans above $250,000, are arranged through our bank and SBA lending partners; on those we package the file, manage the process and stay your point of contact. Details on our Disclosure page.
What you’ll need
- Factoring: active MC/DOT, signed notice of assignment, rate confirmation, signed BOL or POD, W-9, certificate of insurance, voided check or ACH form. Broker credit checks are free before you book.
- Line of credit or working capital: 6 months of business bank statements and your MC/DOT number. No tax returns under $250,000.
- A list of your regular brokers and their usual payment terms, so we can tell you which option fits.
Related: How much a trucking company can borrow · Funding for repairs and fuel · All five products compared
Questions carriers actually ask
Straight answers.
Is factoring or a line of credit cheaper when brokers pay in 60 days?
It depends on how often you need the cash. Factoring charges 1.5%–3.5% per invoice, and the longer a broker takes, the lower that fee is on an annualised basis. A line of credit charges only on the drawn balance, so it is usually cheaper when the gap is occasional rather than every load.
Can I factor only my slow-paying brokers?
Yes. Spot factoring is available. You choose which invoices to submit, and there is no monthly minimum or volume commitment.
What happens if a broker still hasn't paid by day 90?
On a recourse invoice, the recourse period is 90 days. If the broker has not paid by day 91, the invoice comes back to you. Non-recourse adds 0.5%–1.0% and covers broker insolvency only.
Will factoring stop me from getting a line of credit later?
Not with us. Our UCC-1 is filed on accounts receivable only, never as a blanket lien, and if you move to a line or an advance with us we subordinate or terminate it internally.
I run fewer than 3 trucks. Can I get a line of credit?
Not yet. A line needs 3 power units, or 2 on specialized authority, plus 24 months of authority and $60,000 or more in monthly deposits. Invoice factoring has no unit minimum and is the right tool for a broker gap in the meantime.
Check your numbers against ours.
Six minutes. Six months of bank statements. A decision today.
Apply now → 3+ power units · 24+ months authority · $60,000+/month — or start on factoring with none of those.