Proof of delivery

Evidence that goods or services were delivered or completed.

Why it matters

Without acceptable proof of delivery, a factor cannot confirm the service or goods were actually received, and the invoice may be deemed unverifiable and ineligible for funding. POD requirements vary by industry: trucking requires a signed bill of lading, staffing requires approved timecards, construction requires signed completion certificates, and general services require client acknowledgment or written sign-off. Sellers should confirm their factor specific POD requirements before submitting invoices, since undocumented delivery is one of the most common verification failure points across all factoring industries.

How it appears in contracts

Factoring agreements specify acceptable proof-of-delivery formats in the Eligible Receivables definition or the Verification section. Some agreements require PODs to be submitted with the invoice; others allow them to be available for review within a defined period after funding. Electronic delivery confirmations, GPS logs, and customer portal receipts are increasingly accepted but must meet the factor format requirements to qualify as valid POD. Sellers changing their delivery documentation systems mid-contract should notify the factor and confirm that the new format satisfies the agreement requirements before switching platforms.

Related terms

Related article: How invoice factoring works

Related reading

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.
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.