Industry
The deposit patterns, seasonality and timing that decide how funders read a file from a Canadian business in freight brokers.
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Short answer: Freight brokers pay carriers within days but collect from shippers on 30 to 60 day terms, so gross bookings move through the account faster than the margin retained. Funders read gross bookings against margin, the gap between carrier payments and shipper receipts, concentration on a few shippers and quick-pay programs.
Key facts
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Freight brokers pay carriers within days but collect from shippers on thirty- to sixty-day terms, so gross bookings move through the account far faster than margin.
Volumes follow retail and construction seasons, produce harvests and holiday peaks. Cross-border lanes add customs timing and currency effects.
Freight factoring against shipper invoices is a common tool. A revenue-based advance suits general growth needs that are not tied to specific invoices.
A freight brokerage depositing about $260,000 a month asks for $70,000 to carry payments to carriers on a new shipper account. At a 1.2 factor the payback is $84,000, a cost of $14,000. Over roughly 6 months that is about $667 per business day, or close to 5% of monthly deposits.
Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.
A brokerage month shows large inbound payments from shippers on irregular dates and steady outbound payments to carriers, often several times a week. The account can look busy and still be tight, because most of each inbound payment is already owed to carriers. A reviewer reads net margin and the days between paying carriers and being paid.
Canadian brokers frequently handle US cross-border freight, invoicing in US dollars and paying Canadian carriers in Canadian dollars. Some provinces also require freight brokers to be licensed or bonded, which is an ongoing cost.
Whatever the trade, the review is built on the business's own bank statements: how much arrives, how steadily, what is left after fixed costs and how the account is managed through a slower stretch. A short note that names your busiest and quietest months, any one-off deposits and what the money is for usually answers the follow-up questions before they are asked.
Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.
They are read as deposits, but a reviewer looks closely at margin because most of the money passes through to carriers.
If the need is tied to specific shipper invoices, compare it. Many brokers use both.
They add currency and customs timing, which is worth explaining.
Educational information only. It is not legal, tax or accounting advice.
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