Freight brokerages typically move $80,000 to $500,000 a month through their accounts, and the financing problem is almost always the same one: carriers get paid in days, shippers pay in months. A carrier who delivers today is often paid within 24 to 48 hours through a quick-pay program. The shipper who owes for that same load pays on standard commercial terms — commonly net-30, frequently net-45 to net-60 on larger accounts. The gap opens the day the load is booked and doesn't close until the shipper's payment lands.
Growth widens the gap; it doesn't close it. Book ten more loads this month at $2,000 in revenue each, and you've committed to roughly $20,000 in carrier payments due within 48 hours, funded by $20,000 in shipper receivables that won't arrive for 30 to 60 days. A brokerage adding volume is financing that gap out of its own cash before any funder gets involved.
Three tools close it: factoring an invoice, a revenue-based advance against overall deposits, or a line of credit secured by receivables. A brokerage that looks thin on cash while volume climbs isn't necessarily struggling — it's usually growing, and a funder reading the deposit pattern correctly can tell the difference.
of small business financing applicants received the full amount they requested
Federal Reserve, 2026 Small Business Credit Survey
The other 58% were priced, sized, or declined differently — freight brokerages included, since load volume and carrier payments don't pause while an application is underwritten.
Enough to cover carrier payments on loads you've booked but haven't collected on — typically several weeks of gross revenue, not a flat number. A brokerage running $300,000 a month in gross revenue with a 45-day average shipper payment cycle needs a reserve or facility sized to that cycle, not to a single bad week.
This is also where the placement range lines up with the industry. Core placements run $50,000 or more a month in deposits — exactly where most freight brokerages already sit. Most deals land between $20,000 and $200,000 a month; there's a dedicated program for brokerages still below that.
Because every load adds a near-term carrier obligation and a far-term shipper receivable at the same time, and volume growth adds both faster than either resolves. The table below shows one load's cash timeline — the same shape repeats on every load booked, stacking on top of the ones already in flight.
| Day | Event | Cash position |
|---|---|---|
| Day 0 | Load booked and dispatched | No cash movement yet |
| Day 1-2 | Load delivered; carrier submits for quick pay | Brokerage pays carrier — cash out |
| Day 2-30 | Shipper invoice outstanding | Cash committed, nothing collected |
| Day 30-60 | Shipper pays on net terms | Cash finally collected |
Multiply that timeline by a growing number of loads booked every week, and the brokerage is carrying dozens of open gaps at once. Revenue and margin can both be healthy while the checking account stays thin — that's not mismanagement, it's the arithmetic of growth in this industry.
Factoring sells a specific invoice for immediate cash; an advance funds against overall deposits; a line of credit draws against a receivables-based borrowing base. Each fits a different shape of the same gap.
| Structure | How it works | Fits best when |
|---|---|---|
| Freight factoring | Sell individual invoices to a factor at a discount; the factor collects from the shipper directly, notified or not | You need per-load funding tied to specific invoices and want capacity that scales directly with volume |
| Revenue-based advance | A lump sum funded against overall deposits, repaid through a holdback on daily or weekly revenue | You need general working capital — payroll, agent draws, a new lane — not tied to one invoice |
| Receivables line of credit | A revolving credit facility secured by a borrowing base of eligible invoices; draw and repay as needed | You have financial statements and want the lowest ongoing cost of the three, with capacity that grows as receivables grow |
Factoring and revenue-based advances are both purchases of receivables or future revenue, not loans — priced as a discount or a factor rate, not an interest rate. A line of credit is a credit facility and carries interest on the drawn balance, which is why it's usually reserved for brokerages with a longer financial track record.
Recourse factoring means the brokerage repays the factor if the shipper never pays; non-recourse shifts that risk to the factor, usually at a higher discount. Most freight factoring is recourse — cheaper, but the brokerage still owns the risk of a shipper that goes dark. Vetting a shipper's payment history matters as much as vetting a carrier's insurance.
Fast. Quick-pay programs commonly move funds within 24 to 48 hours of a signed proof of delivery; even brokerages without a formal quick-pay option are typically expected to pay carriers well inside 30 days. Carriers run on immediate fuel and driver costs — waiting on a brokerage's own shipper payment isn't something most carriers are equipped to do, or willing to.
Commonly net-30, with net-45 and net-60 routine among larger shippers running their own routing guides and payment departments. A brokerage with a mix of mid-size and enterprise shippers should expect its receivables to average closer to 45 days than 30, regardless of what any single invoice says.
Deposit consistency and trend matter more than the balance on any single day. A funder is reading for steady or growing deposits across a diversified shipper base, average daily balance, how often the account dips negative, and whether an existing advance is already remitting against the same deposits.
When the need is general working capital rather than a single invoice — covering payroll, funding a new lane, or carrying agent draws while volume ramps. Factoring ties funding to specific invoices and often requires shipper notification; an advance funds against the whole business and leaves invoice-level shipper relationships untouched. Brokerages juggling many small shippers often prefer that.
Financing closes a timing gap. It does not fix a bad one.
A few honest lines before you fund the gap instead of fixing it:
Booked the load. Waiting on the shipper. Tell us your average shipper terms and monthly volume, and we'll size what actually fits — factoring, an advance, or a line.
See your options →No credit pull to talk. Business-purpose financing only.
Under $20K a month in deposits? Most of what's above is priced for businesses doing $50K or more a month in deposits — that's the core of what we place. Funding doesn't stop below that line, though; the structure just changes. There's a program built for exactly your revenue level, and the same rule applies either way.
See what you qualify for →Handled through a funding partner. No upfront cost, and we're paid only if it funds.