Trucking factoring checklist

Use this checklist before signing a trucking factoring agreement. It covers documentation, fuel advance terms, broker credit limits, and contract exit provisions. Educational only—not legal advice.

Document requirements

Item	What to check	Note
Rate confirmation	Confirm whether a signed rate confirmation is required for every load or only for new customers.	Missing rate confirmations are one of the most common reasons a load is excluded from funding.
Bill of lading	Identify whether a signed BOL is required or whether proof of delivery confirmation is accepted.	Some programs accept carrier-signed BOLs without consignee signature; confirm what yours requires.
Proof of delivery	Confirm what proof-of-delivery documentation satisfies the eligibility requirement.	Electronic POD systems and paper BOLs may be treated differently by the factor.
Accessorial documentation	Identify how detention, lumper, and layover charges must be documented to be included in the funded invoice.	Undocumented accessorials are often excluded or held pending broker approval.

Fuel advance terms

Item	What to check	Note
Advance percentage	Confirm the fuel advance percentage and any per-load cap.	Multiple simultaneous fuel advances reduce net settlement on all affected loads.
Fuel card network	Identify which fuel card networks are accepted and any location restrictions.	A restricted fuel card network can limit where drivers can fuel economically.
Fuel advance fee	Find the separate fuel advance fee, if any, in addition to the factoring fee.	Some programs charge a flat fee per advance; include it in total cost per load calculations.
Settlement deduction	Confirm when the fuel advance is deducted—on final settlement or as a separate event.	Fuel advance deductions reduce the settlement amount; model this for each load.

Broker credit and eligibility

Item	What to check	Note
Broker approval process	Identify how brokers are credit-approved and how long initial approval takes.	A broker that is not yet approved cannot be funded until credit review is complete.
Credit limits per broker	Ask about the credit limit for each broker you plan to use and what the process is for increasing limits.	A low broker credit limit can cap your funding before your invoice volume does.
Ineligible brokers	Ask whether any of your current brokers have been declined or restricted in the past.	Some factors maintain lists of brokers with poor payment history.
Disputed loads	Confirm how disputed accessorials or delivery timing claims are handled after an invoice is funded.	A dispute on a funded invoice can trigger a chargeback or reserve hold.

NOA and customer notification

Item	What to check	Note
Notice of assignment setup	Confirm how and when the factor notifies each broker to redirect payment.	Misdirected payments cause delays and can require repayment to the factor.
Broker payment portals	Identify whether any of your brokers use payment portals that require special handling.	Some TMS systems process NOA updates differently from standard accounts payable.
Broker already factored	Confirm whether the broker is already subject to another NOA from a prior carrier arrangement.	Conflicting payment instructions to the same broker can cause payment routing errors.

Contract terms

Item	What to check	Note
Contract length and minimum volume	Identify the contract term and monthly minimum invoice requirement.	Minimums create fixed cost obligations during slow months or maintenance downtime.
Termination fee	Find the termination fee formula and identify the events that trigger it.	Remaining-term fee formulas can be significantly larger than flat-fee termination amounts.
Auto-renewal language	Find the renewal clause and calendar the notice deadline.	Missing the notice deadline can extend the contract automatically.
Recourse period	Confirm when the recourse clock starts and what triggers a chargeback.	The recourse clock may start on invoice date, purchase date, or due date—not all are the same.

Questions to ask before signing

What is the total cost per load on my average load size, including fuel advance and wire fees?
Which of my current brokers are already approved and at what credit limits?
What documentation is required for accessorial charges to be included in the funded amount?
How long does initial broker setup take, and can I submit invoices while setup is pending?
What happens to my reserve if I exit the program before the contract term ends?

Sources

Operating Authority - Federal Motor Carrier Safety Administration. Accessed 2026-05-19. Transportation operating authority context for trucking documentation.
International Factoring Association - International Factoring Association. Accessed 2026-05-19. Industry association source for factoring terminology and industry context.
Secured Finance Network - Secured Finance Network. Accessed 2026-05-19. Industry education source for secured finance and asset-based lending context.
Uniform Commercial Code Article 9 - Uniform Law Commission. Accessed 2026-05-19. Reference for secured transactions concepts including receivables and filings.

Last updated 2026-05-19

Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.