Bill of lading
A transportation document that identifies goods, shipment terms, and receipt of cargo.
Why it matters
In trucking factoring, a signed bill of lading is typically required proof of delivery before a factor will approve an invoice for funding. The BOL documents what was shipped, who received it, and that delivery was completed without damage or exception notation. A BOL with exceptions such as damaged goods, short delivery, or delivery refusal may indicate a pending dispute and can make the invoice ineligible for funding. Carriers should collect signed BOLs at delivery and submit them with every invoice to avoid holds during the verification process.
How it appears in contracts
Factoring agreements for freight and trucking specify BOL requirements in the Eligible Receivables or Verification section. Common requirements include a clean delivery signature without exception notation, a delivery date within the invoice stated terms, a carrier name matching the invoicing entity, and shipper and consignee details matching the load confirmation. Some factors accept electronic signatures from delivery confirmation apps; others require originals or certified copies. Missing or unsigned BOLs are among the most common reasons trucking invoices are held during verification calls and the leading cause of same-day funding failures.
Related terms
Related reading
Sources
- Operating Authority - Federal Motor Carrier Safety Administration. Accessed 2026-05-19.
- International Factoring Association - International Factoring Association. Accessed 2026-05-19.