Broker & Factoring Terms Glossary

Company arranging freight between shipper and carrier.

Selling freight invoices for faster payment.

Company that buys invoices and pays carriers faster.

Broker pays faster, usually for a fee.

Normal payment timeline like Net 30 or Net 45.

Payment due timeline after invoice or paperwork.

Written broker-carrier agreement for a load.

Carrier onboarding paperwork for a broker.

Documents used to set up a carrier account.

Broker a factoring company refuses to fund.

Review of broker payment risk before hauling.

Maximum approved exposure for a broker account.

Notice showing invoices are assigned to a factor.

Factoring where unpaid invoices can come back to carrier.

Factoring with limited credit-risk protection.

Deduction or reversal of a factored invoice.

Extra charge beyond the base load rate.

Repayment for approved unloading labor fees.

Payment for excessive shipper or receiver wait time.

Truck Ordered Not Used cancellation fee.

Claim involving damaged, lost, or disputed freight.

Payment received for less than billed amount.

Proof that freight was delivered.

Documents submitted together for payment.

Improper re-brokering of a load.