Factoring
Factoring is when a carrier sells its unpaid invoices to a factoring company for cash now, and the factor then collects from the broker.
Last updated 11 October 2026.
The carrier does not want to wait out your payment term. A factor pays the carrier a discounted amount up front and takes the right to collect the invoice from you. You get a notice of assignment. After that notice, paying the carrier directly can mean paying twice, because the factor still has the claim.
The load does not change. The POD, the rate confirmation, and the rate are the same. What changes is the payee. Put the notice on the carrier, and send the money to the factor when the invoice is approved. A notice that arrives after you already paid the carrier is a mess the agreement has to answer. A notice that never gets attached to the carrier record is how the same invoice gets paid to both.
Factoring is not quick pay. Quick pay is your offer to pay faster for a fee you keep. Factoring is a third party buying the invoice. The remittance instruction on this invoice is the one to follow, not the habit from the last load.
FreightScout is not a factor and it does not buy invoices. It matches the POD, sends the shipper invoice, and creates the carrier payable. Who that payable names still follows the notice, and a person approves a payee change. How FreightScout runs billing.
Questions people actually ask
Who gets paid after a notice of assignment?
The factor, not the carrier. Paying the carrier directly after that notice can mean paying the same invoice twice.
Is freight factoring the same thing as quick pay?
No. Quick pay is your own faster payment, and you keep the fee. Factoring is a third party that bought the invoice. The notice tells you which one this load is.