Why Freight Brokers Struggle With Cash Flow
Running a freight brokerage isn’t easy. You hustle to secure loads, manage carriers, and keep customers happy — but then wait 30, 60, even 90 days to get paid. That kind of delay can strangle your growth.
If you’re a freight broker struggling with inconsistent cash flow, you’re not alone. This guide will show you how factoring companies work specifically for brokers like you, why it could be the game-changer you need, and how to use them wisely.
What We’ll Cover
- What Is Freight Broker Factoring?
- How Does It Work?
- When Should a Freight Broker Use Factoring?
- Top Benefits (and a Few Pitfalls)
- Choosing the Right Factoring Company
- What Do You Need to Qualify?
- Understanding Factoring Rates for Brokers
- FAQs
- Final Thoughts
What Is Freight Broker Factoring?
Freight broker factoring is a financial service where you sell your invoices to a factoring company in exchange for upfront cash. Instead of waiting for clients to pay, you get paid within 24 hours — often the same day.
This isn’t just for carriers. Brokers can absolutely use factoring to maintain cash flow, cover operating expenses, and pay carriers on time.
In simple terms: You get the money you’re owed, right now.
How Does Freight Broker Factoring Work?
Here’s how it works in practice:
- You book a load and invoice your customer.
- You send that invoice to a factoring company.
- The factoring company pays you up to 95% of the invoice amount immediately.
- Once your client pays, the factor sends you the remaining balance minus their fee.
Most companies also handle collections and credit checks, saving you admin time.
Pro Tip: Look for a non-recourse factor to reduce your risk if a shipper fails to pay.
Signs You Should Use Factoring as a Freight Broker
You should consider factoring if:
- You’re waiting 30+ days for client payments.
- You want to grow but cash flow is a bottleneck.
- You pay carriers upfront but get paid later.
- You want to reduce your risk and back-office work.
Even well-established brokers use factoring to scale without cash strain.
Top Benefits of Invoice Factoring for Brokers
Factoring isn’t just about quick cash. Here’s what you gain:
- Same-day cash flow to cover carrier payments and operations.
- Admin support (credit checks, collections, paperwork).
- Stronger partnerships with carriers who get paid fast.
- Growth readiness — take on more loads without waiting on receivables.
A quick reality check: You’ll pay a small fee (typically 1-4%). But the time saved and stress avoided? Often worth it.
What to Look For in a Freight Factoring Company
Look for these must-haves:
- Industry experience in freight brokerage
- Transparent fees (avoid hidden charges)
- Back-office tools like invoicing, collections, TMS integrations
- Flexible terms (watch out for long contracts)
At our team at MJN Services, we help brokers with factoring that fits. No long waits. No confusing fees. Just cash when you need it.
What Do You Need to Qualify?
To apply for freight factoring, you typically need:
- Valid MC number and operating authority
- Customer list and invoice details
- Proof of delivered loads
- Business bank account and tax ID
- Signed factoring agreement
Having creditworthy clients also increases approval odds.
Understanding Factoring Rates for Brokers
Factoring rates vary based on:
- Monthly invoice volume
- Client payment history
- Advance rate (typically 85-95%)
- Length of payment terms (30, 60, 90 days)
Typical fees range from 1% to 4%. Ask about additional charges like setup, ACH, or credit checks.
Ready to Take the Next Step?
Explore how our factoring solutions can keep your brokerage cash-positive and stress-free.
FAQs
Final Thoughts on Freight Broker Factoring
Freight broker factoring can be the bridge between hustle and healthy growth. It removes the stress of delayed payments and helps you operate smoothly and scale confidently.
If you’re tired of playing the waiting game with receivables, it may be time to partner with a factoring company that understands brokers.
MJN Services, Inc. excels as a champion for businesses, providing both freight brokerage and invoice factoring services, across Canada and the United States.
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What our clients say
Our customers' success drives us to improve our service continually. We're grateful for the trust our transportation partners place in us. Their achievements inspire us to deliver excellence every day.
Vianney92909 Blanca Aguilar
September 17, 2025
Excellent service
mike
July 30, 2025
excellent company,
Evolution Transport
July 18, 2025
Great people, working with them for many years. Highly recommend!
EXTREME POWER SERVICE LLC
June 27, 2025
It was a pleasure working with Matthew and his team! We hope that we will also work with them in the future.
Matthew Foley
June 20, 2025
Reasonable, communicative, and they pay on time. Never had a bad experience quite a few loads in.
Mariaelena Rincon
June 13, 2025
We had a very good experience with them. Matthew was very pleasant and professional. I would recommend it 100.
Klay Pasha
June 6, 2025
They were really professional with everything didn't have problems at pickup or delivery we were in and out just like MJN said. It was a pleasure working with Matthew great company overall Thank you!
Leordan Carli
June 6, 2025
Very friendly and good communication, thank you for working with us
Daxel Díaz
June 5, 2025
I recently had the pleasure of working with MJN, and I can confidently say they exceeded all expectations. From start to finish, the process was smooth, professional, and efficient—thanks in large part to Curt, who was our main point of contact. Curt was incredibly responsive and knowledgeable. He made sure every detail of our flatbed load was handled with precision and care. His communication was clear and timely, and he proactively kept us updated throughout the entire shipment. It’s rare to find someone so dedicated to ensuring everything runs seamlessly. The MJN team clearly values reliability and customer service. Our load was picked up and delivered on time, with no surprises or issues. It’s clear they work with a strong network of carriers and have a deep understanding of the logistics involved in flatbed transport. If you're looking for a trustworthy and professional brokerage to handle your freight, I highly recommend MJN—and be sure to ask for Curt. We’ll definitely be working with them again.
Nicolai Chiciuc
June 5, 2025
Great company! The broker was very polite and helped us to get out of PA! Thank you guys!
RoadStar Express
May 28, 2025
Worked with Curt over the past year and always a great service. Also their payment is always on time!
Logistics Gg
May 28, 2025
Curt is awesome and easy to work with.
Mike Scott
May 27, 2025
I worked today with one of your broker Curt and His service was awesome. He held the load for us longer than usual. He was polite in communication and smart enough to make us fill out the setup. I'd love to work again with him.
M & S TRANSPORTATION SERVICES LLC
May 24, 2025
Un un excelente servicio muy buena. Comunicación.
Francisco Sanchez
May 23, 2025
Mjn is a factoring co. And there’s no other they are nice friendly and very patient with me and always willing to help me
Kanwar Sikand
May 23, 2025
We had an excellent experience working with MJN, especially with John. He was highly supportive and responsive throughout the process. We would be pleased to continue our cooperation with them in the future.
Andy T
May 23, 2025
Curt is awesome to work with. He is always willing to help out.
Ja Transport
May 23, 2025
Is one off the small factory company's. Don't have to keep calling each time I finish a job.always on time. Customer service is exceptional. No a link were you have to download paper work forcing to use computer. It's simple and easy way to keep your business running.
Jesse Logsdon
May 22, 2025
Not once have regretted going with MJN. The people are the easiest to work with let alone polite and considerate in every way shape or form. If I had to chose again I’d chose MJN and so should you
James Briggs
May 22, 2025
MJN Services has been a great company to work with. Factoring services and they have a load board! Super great company and we love working with them!
Gustavo Castro
May 22, 2025
I just love the way they attend to us they are friendly and nice and have all the patience with me thank you Delfa Miriam and Annabell for taking care of us
Tim Barton
May 7, 2025
It was a pleasure to work with John Weig Looking forward to work with you in future
Kamesha S
November 1, 2023
Great Company to Work with.
Jerry Boucher
October 13, 2023
great company to work with,
M & M Stith
October 2, 2023
MJN Services has given us the best factor experience that we’ve ever had. They are personable, thorough, and offer the best rates that we’ve seen. Doing business with them is a pleasure.
Victor Paulik
September 29, 2023
Great company to work with. Helpful staff overall Great people.
Risk Advisor
September 15, 2023
MJN Services is a solid operation that truly works to strengthen the trucking industry and has strengthened the trucking industry!
Tony Black
September 11, 2023
Aaron at MJN is fantastic to work. He is always easy to reach and always delivers! I would highly recommend him and MJN.
Angel Valle
September 8, 2023
Very professional people to work with
Jeff Jensen
April 7, 2023
MJN is my trusted Freight partner and has helped my company move very important loads that were critical to our success. Good people running a great company.
Perry Troyer
September 20, 2021
Taco's!!!!!!
Raul Gonzalez
May 21, 2021
Easy straight forward no nonsense