Factored carriers
A factored carrier can bill $150,000 a month and show far less in the bank. Here is how gross loads become net deposits, why funders read the deposits, and how the factor’s lien shapes your options.
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Updated October 13, 2026 · Merchant Fund Express
A carrier that factors its freight bills has three different figures, and confusing them is the most common reason a file is read wrong.
| Figure | What it is | How a funder treats it |
|---|---|---|
| Gross loads billed | What your rate confirmations add up to | Not what a funder reads |
| Factor advances | The 90% to 97% of each bill the factor sends you, minus fees | Shows up as deposits |
| Reserve releases | The holdback the factor returns after the shipper pays | Shows up later, in smaller deposits |
| Net bank deposits | Advances plus releases, minus chargebacks | The number the file is read on |
A regional carrier with five tractors on dedicated parcel routes bills $142,000 in May.
| When | Item | In | Out |
|---|---|---|---|
| May 1 to 31 | Loads billed | $142,000 | |
| Weekly | Factor advances at 92% | $130,640 | |
| Weekly | Factor fees at about 2.5% | −$3,550 | |
| Weekly | Fuel card and other deductions taken by factor | −$9,800 | |
| Through June | Reserve released as shippers pay | $7,900 | |
| Chargeback: one disputed load | −$2,300 | ||
| Net deposits a funder sees for May | $122,890 |
The carrier thinks of itself as a $142,000-a-month business. The bank statement says about $123,000. Every revenue test on our requirements page is read from the bank side. Fuel advances run through the factor also lower deposits, so list them.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
Almost every factoring agreement files a UCC lien on your accounts receivable, and many restrict any other financing on them. Before applying for anything else:
A funder reads the factor’s UCC filing during review, so disclose it up front. See funding with a UCC lien on file and how an advance uses a UCC.
Regional and local carriers only. We do not promise funding for long-haul trucking. On the revenue-based tier, trucking needs 3 years in business, $200,000 in revenue and contracts with Amazon, FedEx or UPS. Our first tier has its own thresholds on funding requirements.
When not to borrow: if the factor will not consent, if most of your loads are spot freight with no contract, or if net deposits after fuel and existing notes leave less than a week of costs in the account at month-end.
Run every payment test on net deposits. In the example, a $650 weekly payment is about $2,800 a month, or 2.3% of $122,890 in net deposits. Add your truck notes and insurance and check the total in a month where two tractors are down for service.
Repairs on a factored fleet: see fleet repair funding. More products on trucking funding. Ready? Check what you qualify for.
Funders read net bank deposits. Factor fees, fuel deductions and reserves mean deposits are lower than what you bill.
Many factoring agreements require it or restrict new financing on receivables. Read your agreement and ask the factor for a consent letter.
Not by itself, but it must be disclosed and the new funding must not claim the receivables the factor owns.
We do not promise funding for long-haul trucking. Regional and local carriers that meet the trucking rules are reviewed.
Yes. They explain the gap between billed loads and deposits and make the file read faster.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
