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What is Freight Factoring

Instapay is a factoring company empowering carriers who don’t want to wait months to get paid. By using invoice factoring you can manage your cash flow and receive payment as quickly as 24 hrs.
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How does factoring work?

Factoring can seem like a complex process, but we make it seamless for you. Here’s what happens when you factor with us.

Step 1. Finish your load

Let’s assume you just hauled a load, but won’t get paid for 30 days. As an example, let’s say your freight factoring amount is $2,000.

Step 2. Send your docs

Just take a picture of your Bill of Lading and Rate Confirmation and email them to our freight factoring service at

Step 3. We validate your docs

We will review your documents within 24 hrs. Once your docs are validated we can send your payment through an eletronic ACH deposit.

Step 4. Get paid the same day

Once your bank processes the payment, you will receive the funds to your account less the factoring rate of 3.5%, that is $1930 in our example. You can forget about collection.

Step 5. We handle collection

You're all set. It's that easy to use our hassle-free freight factoring service. We will deal with the customer so you don't have to.

Types of Factoring

This is a common question people ask when trying to understand the different types of factoring. Let's explore the differences between recourse and non-recourse types of factoring finance.

Recourse Factoring

When a freight factoring company offers a recourse rate, it will purchase an invoice from the carrier and collect funds as a bill from the client. Failure to pay by the client results in the freight factoring company selling the invoice back to the carrier who is then responsible for collection.

Non-recourse Factoring

When a freight factoring company like Instapay offers a non-recourse rate, then the company will purchase the carriers invoice and collect funds after the 'days to pay'. However, if a client fails to pay then the factoring company will need to collect the unpaid amount, not the carrier.