If you require support for your Bobtail account, you can email your client success team or call us at 410 204 2084. Our operational hours are Monday – Friday, 9 AM – 5 PM EST. Please see the below frequently asked questions for additional information.

What is freight factoring?

Freight factoring is a financial service that allows trucking companies to sell their unpaid invoices to a factoring company in exchange for immediate cash. This helps you keep cash flowing without waiting 30–90 days for customer payments.

How does freight factoring work?

You deliver a load, submit the invoice and proof of delivery to the factoring company, and receive a cash advance, typically within 24 hours. The factoring company then collects payment directly from your broker or shipper.

How do I apply or get started with freight factoring?

Applying is simple. Bobtail has a seamless online onboarding process to get you set up.  You can get set up and factoring invoices within an hour!  All you will need is your driver’s license and insurance document to get started.  Sometimes we also require additional documents, like your incorporation documents. 

Can I switch from another factoring company?

Yes. You can switch by requesting a buyout letter from your current provider. Switching to Bobtail is simple. Submit a termination notice to your current factoring company and let Bobtail handle the rest. Bobtail will request a buyout agreement from your current factoring company and complete the process. This process typically takes about 2 days to complete, but can take longer depending on your current factoring company.

What documents do I need to submit an invoice?

To factor an invoice, you typically need a signed Bill of Lading (BOL) and a rate confirmation. These can be submitted via the mobile app or our web portal.

What are the benefits of using a freight factoring company?

Freight factoring provides fast cash flow, reduces administrative burden, includes credit checks on brokers, and helps you avoid taking on debt.

Who typically uses freight factoring services?

Owner-operators, small fleets, new trucking businesses, and logistics providers use factoring to manage cash flow, cover fuel, insurance, and maintenance costs, and grow without waiting on delayed payments.

What types of freight invoices can be factored?

You can factor invoices for dry van, flatbed, reefer, intermodal, and many other freight types, as long as they are delivered to creditworthy brokers or shippers.

How fast do I get paid with freight factoring?

Bobtail offers expedited, same-day, and next-day payment once the invoice is approved.  Expedited payments require an additional fee; however, all other same-day and next-day payments are free.

Bobtail provides same-day funding to all clients. Submit your invoices before 11 AM EST Monday through Friday and you will receive funding the same day by 6 PM EST in your bank account.  

Are there any fees involved with freight factoring?

Yes. A small factoring fee (usually 1.5%–3.5%) is charged per invoice. Rates vary based on volume and credit risk. Other factoring companies may charge additional fees on top of the factoring rate for processing, ACH transfers, and invoices. Bobtail is proud to have no hidden fees.  

Is freight factoring a loan?

No. Freight factoring is not a loan. It is the sale of an asset—your unpaid invoice—so there’s no debt, no interest, and it doesn’t affect your credit.

Do I need good credit to qualify for freight factoring?

Not necessarily. Approval is based primarily on the broker’s or shipper’s credit, not yours. Your brokers and shippers should have a reliable payment history.

Can I choose which invoices or brokers to factor?

Yes. Bobtail lets you choose which brokers you want to factor and which ones you want to bill directly. 

What is a broker credit check?

Bobtail runs a credit check on every broker & shipper to ensure timely payment. We advise all carriers to perform a credit check on all brokers and shippers in the Bobtail app before picking up a load.

Can I use freight factoring if I’m a new trucking company?

Yes. Many factoring companies work with new authorities and startups, as long as your customers (brokers/shippers) have strong credit profiles.

Do you offer fuel advances or fuel cards?

Bobtail offers a fleet card, which you can learn more about here – {link to fleet card page}

What tools or technology do I get access to?

Bobtail is different from most factoring companies because we’ve built all of the technology we use.  We are proud to offer a wide variety of tools to help our carriers succeed, including an easy-to-use TMS, factoring, and a fleet card – all built by Bobtail.  

Is a long-term contract required?

Nope – we make sure to give every carrier a 90-day trial to test out our services and make sure it meets your expectations!  We are sure you will love it!

What are your support hours, and how can I contact you?

We offer client success support from 9 am to 5 pm EST, Monday to Friday. You can contact us at 410-204-2084. Factoring customers are assigned a dedicated support team they can contact through the app, by email, or by phone.