Invoice Factoring for Trucking Companies

Why Trucking Companies Turn to Invoice Factoring

In the trucking industry, payment delays are the norm. Carriers and owner-operators often wait 30–90 days for brokers and shippers to pay invoices. Meanwhile, fuel, driver wages, insurance, and repair bills can’t wait.

This cash flow gap is where invoice factoring comes in. With factoring, trucking companies sell their unpaid freight bills to a factoring provider and get immediate cash (often within 24 hours).

At Mehmi Financial Group, we help fleets and independent drivers stabilize cash flow with factoring solutions designed for transportation businesses.

How Trucking Invoice Factoring Works

1. Deliver Freight – You complete the haul and send an invoice to the shipper or broker.
   
   
2. Submit the Invoice – Sell that invoice to a factoring company.
   
   
3. Get an Advance – Receive 70–95% of the invoice value upfront (same day in many cases).
   
   
4. Customer Pays – The factoring company collects from the shipper/broker.
   
   
5. Settlement – You receive the balance minus the factoring fee.
   
   

This turns your accounts receivable into working capital you can use immediately for fuel, payroll, repairs, and new routes.

Benefits of Invoice Factoring for Trucking

• Immediate Cash Flow – Cover fuel, tolls, and driver pay without waiting weeks.
  
  
• Keep Trucks Moving – Avoid downtime caused by lack of operating capital.
  
  
• No New Debt – Factoring is not a loan; it’s selling receivables.
  
  
• Fuel Advance Options – Some factoring partners provide same-day fuel cards.
  
  
• Growth Ready – Take on more loads without cash flow constraints.
  
  

Why Trucking Is a Perfect Fit for Factoring

The transportation sector is one of the biggest users of factoring because:

• Freight bills are predictable and verifiable.
  
  
• Brokers and shippers often have long payment terms.
  
  
• Trucking companies face high operating costs that require steady cash flow.
  
  
• Fleet growth depends on accepting new contracts quickly.
  
  

For fleets in Toronto, Mississauga, Brampton, Calgary, Edmonton, Vancouver, Winnipeg, Montreal, and Halifax, invoice factoring is often the difference between running at full capacity and being forced to decline freight.

Explore Mehmi’s transportation financing expertise for more tailored solutions.

Case Study: Keeping a Fleet Running

A small carrier in Ontario with five trucks was facing cash flow pressure because shippers took 60 days to pay. Fuel costs alone were over $25,000/month.

By partnering with Mehmi for freight invoice factoring, they received 85% of each load invoice upfront. This allowed them to:

• Pay drivers weekly
  
  
• Buy fuel in bulk at discounted rates
  
  
• Repair trucks immediately when breakdowns occurred
  
  

Within six months, the fleet expanded to eight trucks, taking on contracts they couldn’t have accepted before.

‍FAQ: Trucking Invoice Factoring

1. How fast can I get paid with factoring?
Most trucking companies receive cash within 24–48 hours of submitting invoices.

2. What’s the advance rate?
Typically 70–95% of invoice value upfront, depending on client and factoring agreement.

3. Do I still own the invoices?
No, the factoring company purchases them and collects directly from shippers/brokers.

4. Is this only for big fleets?
No. Owner-operators and small fleets often benefit the most.

5. Does factoring hurt customer relationships?
No. Factoring companies act professionally, and most shippers/brokers are accustomed to it.

6. Is factoring better than a loan?
For immediate operating expenses like fuel and payroll, factoring is often faster and more flexible than loans.

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Final Thoughts

For Canadian trucking companies, invoice factoring is one of the fastest and most practical ways to keep cash flowing. Instead of waiting 30–90 days for payments, you get cash upfront, keep your trucks moving, and grow your fleet with confidence.

At Mehmi, we specialize in invoice & freight factoring for trucking businesses across Canada. Whether you’re an owner-operator or a fleet of 50, factoring helps you bridge the gap between deliveries and payments.

Try our financing calculator to estimate costs, or contact us to get a tailored factoring solution today.

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