Transportation & Logistics
Business Funding for Freight Brokers
Freight brokers get squeezed from both sides. Carriers want quick pay, often within 24 hours, while shippers pay on net-30 to net-45 terms. Your profit lives in the spread between what the shipper pays and what the carrier accepts, but you cannot capture that spread if you do not have the cash to pay carriers on time.
Common Uses
What Freight Brokers Use Funding For
- Pay carriers within 24 to 48 hours to attract better drivers and negotiate lower rates
- Fund the $75,000 surety bond required to maintain broker authority
- Invest in load board subscriptions, TMS software, and rate analytics tools
- Hire additional sales reps and carrier reps to grow load volume
Funding Options
Best Funding Types for Freight Brokers
Freight Factoring
The standard funding tool for freight brokers. Factor your shipper invoices and use the advance to pay carriers immediately. Most freight factors can fund same-day and handle the collections process with your shippers.
Business Line of Credit
Use a revolving line to cover carrier quick-pay commitments and operational overhead. Unlike factoring, a credit line lets you keep the full margin on loads where you have the cash to self-fund.
Revenue-Based Financing
Get an advance based on your monthly gross revenue with repayments that flex as your load volume changes. This works well for newer brokerages that are growing fast but do not yet qualify for traditional bank lines.
What Lenders Look For
Qualification Notes for Freight Brokers
Ready to Explore Funding for Your Freight Broker Business?
Find out what you qualify for in minutes. No impact on your credit score.