Plain-language guide
Freight Factoring Comparison Checklist
A clean comparison requires every company to answer the same questions for the same sample month. This checklist is designed to turn sales conversations into comparable written terms.
Reviewed July 25, 2026 · Educational information, not legal or financial advice
Key takeaways
- Use the same operating scenario for every quote.
- Separate price, risk transfer, contract, and service.
- Request the proposed agreement before choosing.
- Verify verbal promises in writing.
Cost
Ask for the total dollars charged on a sample month, then calculate the effective percentage of factored invoices.
- Base rate and whether it is flat or tiered
- Rate steps at 15, 30, 45, 60, and 90 days
- Funding, wire, ACH, invoice, and account fees
- Monthly minimum, minimum volume, and shortfall
- Reserve percentage and release timing
Risk and invoice eligibility
Define who is responsible for non-payment in the situations your carrier is most likely to encounter.
- Recourse or non-recourse definition
- Credit-risk events that are covered
- Freight claim, dispute, and paperwork exclusions
- Broker approval and credit-limit process
- Chargeback timing and repayment process
Contract and exit
Put every date, notice step, and potential exit charge into a calendar and a dollar example.
- Initial term and automatic-renewal length
- Notice window, method, and address
- Early-termination and buyout calculation
- Collateral description and UCC release process
- Final reserve and broker-notice handling
Daily service
Test the actual workflow, not only the funding promise. A cheap program can be costly if invoices are frequently rejected or support is unavailable when a load is at risk.
- Submission method and required documents
- Approval and funding cutoff times
- Weekend and holiday funding
- Named account contact and support hours
- Portal, mobile app, credit checks, and reporting
Common questions
How many quotes should I compare?
Three written quotes usually reveal meaningful differences without creating an unmanageable process. Add another only when it represents a different contract structure or service model.
Should I apply before seeing a contract?
A provider may need information to price the account, but request the proposed agreement and complete fee schedule before making a final decision.
Can AICA choose a factor for me?
AICA provides an educational assessment and comparison framework. It does not currently sell leads, rank providers, or select a company on a carrier's behalf.
Sources and further reading
Provider sources explain their own products and may present them favorably. AICA links them for definitions and verification, not as endorsements.