Guide · New authority
Can a new trucking company with less than 1 year of authority get funding?
Yes — through invoice factoring, which Linehaul Capital provides from day-one authority with no time-in-business minimum, no revenue minimum and no personal credit check. You get 90–97% of each delivered invoice the same day, plus fuel advances of up to 50% of the linehaul at pickup. Working capital, lines of credit and term loans open at 24 months of continuous authority.
Why factoring works when nothing else does
When you factor, we buy a delivered invoice that a broker or shipper owes. We underwrite the broker’s credit, not yours, so your authority age, your personal credit and your revenue history do not decide the file. That is why invoice factoring is open to carriers who got their authority last week, from hotshot and box truck to reefer and flatbed. Before you book a load, run the broker’s MC through us free; if we would not buy their paper, you want to know before you move the freight.
Nothing about factoring changes how you dispatch. You haul the load, then send three documents: the rate confirmation, the signed BOL or POD, and your invoice. A photo from the cab is fine. Packets in by 1:00 PM ET are paid the same day by ACH; after that, the next business day. Under the notice of assignment the broker pays us directly, so you do not chase it. On a 95% advance, the remaining 5% comes back to you when the broker pays, minus the fee.
What opens up, and when
| Milestone | What happens | What we fund |
|---|---|---|
| Day 0 | USDOT number issued; the 18-month FMCSA new-entrant monitoring window starts | Invoice factoring and fuel advances |
| Months 1–12 | FMCSA safety audit must take place | Invoice factoring and fuel advances |
| Month 18 | New-entrant monitoring ends | Invoice factoring and fuel advances |
| Month 24 | With 3+ units (2 specialized), $60,000+/mo deposits, audit closed, no “Unsatisfactory” rating | Working capital, line of credit, plus factoring |
| Month 24, larger fleet | 5+ units and $100,000+/mo deposits | Term loans of $100,000–$2,000,000 through our bank lending partners |
Why advances wait until month 24
Under 49 CFR Part 385, a new carrier sits inside an 18-month monitoring window and must pass a safety audit in its first 12 months. Fail it and do not complete a corrective action plan, and authority can be revoked, for reasons that have nothing to do with the bank account. We will not write an unsecured advance against that risk. Twenty-four months is six months past the end of the window, with a closed audit. We publish the threshold so you can check your own authority date in SAFER before you apply.
What factoring costs a new carrier
The rate is set by monthly volume and recourse terms. Under $40,000 a month, or on non-recourse, it runs 2.8%–3.5%; $40,000–$150,000 a month on recourse runs 2.0%–2.8%. There is no setup fee, no monthly minimum and no termination fee, and the agreement is month to month with 30 days’ written notice to leave.
Cash timing matters most in year one. Our Resources page shows insurance on new authority at about $15,900 per truck for the first year, against $11,800 for an established owner-operator, and fuel float near $4,800 per truck per month. A fuel advance of up to 50% of the linehaul at pickup, netted at delivery, keeps the truck moving while the broker’s terms run.
Getting to Track 1
Keep the safety record clean and get the audit closed. Build average deposits toward $60,000 a month over a six-month window. Reach 3 power units, or 2 on reefer, flatbed, tanker, hazmat or car-haul authority. When you cross 24 months, working capital of $75,000 to $750,000 and a line of credit open up. Our factoring UCC-1 covers accounts receivable only, and if you move to an advance with us we subordinate or terminate it internally: one file, one lienholder.
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
- Active MC/DOT number
- Signed notice of assignment (NOA)
- Rate confirmation for the load
- Signed BOL or POD
- W-9 and certificate of insurance
- Voided check or ACH form
- One delivered load to start. There is no volume commitment.
Related: Funding for repairs and fuel · Funding with bad credit · Segments we fund
Questions carriers actually ask
Straight answers.
Can I get a working capital advance with 6 months of authority?
No. Working capital, lines of credit and term loans require 24 or more continuous months of authority. Invoice factoring is available from day one, with no time-in-business minimum.
Do you check my credit as a new carrier?
Not for factoring. We do not run personal credit; we check the broker or shipper who owes the invoice. There is no minimum FICO on any product.
Is there a minimum monthly volume for factoring?
No. There is no monthly minimum, no volume commitment, no setup fee and no termination fee. The agreement is month to month.
Can I get a fuel advance on my first load?
Yes, once you are set up for factoring. A fuel advance of up to 50% of the linehaul is paid at pickup once the load is covered and the rate confirmation is in, and it is netted against the advance at delivery.
When can I apply for working capital?
At 24 continuous months of authority, with 3 power units (2 on specialized authority), $60,000 or more in average monthly deposits, a closed new-entrant safety audit and no Unsatisfactory safety rating.
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.