FAQ’s

Freight factoring is a financial service where trucking companies sell their unpaid invoices to a factoring company (called a factor) at a discount. Instead of waiting 30-60+ days for customers to pay, you get cash upfront—usually within 24 hours.

Here’s the basic flow:

1. You complete a load and invoice the broker or shipper
2. You submit the invoice to BasicBlock
3. BasicBlock approves it and advances you most the funds.
4. Your broker pays BasicBlock directly

Factoring is not a loan—you’re selling an asset (the invoice). It doesn’t show up as debt on your balance sheet, making it attractive for owner-operators looking to improve cash flow without taking on traditional debt.

Learn more: Explore BasicBlock’s fuel advances to see how we combine factoring with fuel discounts, or read about getting paid quickly.

External resource: The American Trucking Associations provides industry standards on payment terms and cash flow management.

Recourse factoring means if your customer doesn’t pay the invoice, you’re responsible for repaying the advance. You’re guaranteeing the invoice.

Non-recourse factoring means if your customer defaults, BasicBlock eats the loss—you keep the advance. It’s factoring “without recourse” to you.

The trade-off: Non-recourse factoring is safer for you but costs more (typically 0.5-1.5% higher fees) because BasicBlock absorbs the credit risk.

BasicBlock offers non-recourse factoring. It’s ideal if you:

• Work with smaller, less-established brokers
• Want maximum protection against customer defaults
• Prefer peace-of-mind over lower fees

The main consideration: non-recourse is typically available for loads with established, creditworthy customers. Extremely high-risk brokers may not qualify.

External resource: The NACM (National Association of Credit Management) has detailed guidance on credit risk and factoring structures.

Owner-operator cash flow struggles come down to timing mismatch:

You have to pay for:

• Truck payment/lease: Due monthly
• Fuel: Paid upfront (or credit card)
• Maintenance: Unpredictable but frequent
• Insurance: Monthly or quarterly
• Equipment: Ongoing

But you don’t get paid for 30-60+ days after completing loads.

This creates the cash crunch:

• You complete a $3,000 load on Monday
• Fuel costs $600 (paid Tuesday)
• Equipment issue costs $400 (paid Wednesday)
• Truck payment due Friday ($1,200)
• But broker won’t pay until mid-August (60 days)

You’re now $600 short just to keep running, forcing you to:

• Use credit cards (15-25% APR)
• Skip maintenance (costly later)
• Turn down loads (losing income)
• Take sketchy quick-cash offers

The impact: Successful owner-operators operate on positive cash flow. Even a 2-week payment delay can derail profitability.

Solutions:

• Factor invoices for same-day funding with BasicBlock
• Use fuel advances to manage fuel costs
• Work with established brokers who pay faster
• Build 2-3 months operational reserves

Learn more: Read Common mistakes new owner-operators make and how to avoid them.

External resource: NACM’s working capital management has industry benchmarks for healthy cash reserves.

Most loads: within 4-24 hours of invoice submission.

The exact timeline depends on:

• Invoice submission time (submit before 2pm CST = same-day review)
• Documentation completeness (proof of delivery, broker info)
• Customer creditworthiness (established brokers = faster approval)
• Bank processing (most funds hit your account next business day)

Typical timeline:

1. Submit invoice (10 mins) → Fast confirmation
2. BasicBlock reviews (~30 mins) → Approval decision
3. Advance funded to your account (next business day) → Cash available, Or use Instant Pay for automatic funds
4. You’re running the next load while we wait for broker payment

Why it matters: Even a 2-day difference means you can take loads back-to-back instead of sitting idle waiting for payment. That’s $1,500-$3,000 extra income per week.

Compare: Traditional brokers pay net-30 to net-60 (30-60 days), some pay net-90. Credit lines take weeks to approve.

This can be done directly in our app under the Settings tab. Navigate to the Users section and select Add. Fill out the form, then click Create—an email invitation will automatically be sent to the new user’s email address.

Our load submission process is centered around the 2:00 PM CST cutoff:

• Before 2:00 PM CST (Monday–Friday): Loads submitted before the cutoff are reviewed by our Accounts Payable Team and, if everything is in order, are processed for payment the same day—typically by 4:00 PM CST.

• After 2:00 PM CST (Monday–Thursday): Loads submitted after the cutoff will be reviewed and processed the next business day.

• After 2:00 PM CST on Friday: Loads submitted after this time will be processed the following Monday.

Please keep in mind that our team reviews hundreds of loads daily. Submitting your paperwork before the cutoff gives us the best chance to process and pay out by 4:00 PM CST.

For loads submitted after the cutoff or over the weekend, the only way to receive same-day payment is through Anytime Pay (a $30 fee). The load must be pre-approved before use.

All of this can be completed directly in our app. Simply go to Settings > Payment Methods > Add, and choose whether you’d like to link a bank account or a debit card to your profile.

If you experience any issues adding your bank account, please reach out to our Support Team for assistance.

Please send all updated rate confirmations (ratecons) to ratecon@basicblock.io. Our team will identify the load by its number, review any changes (such as pickup or drop-off locations, rate adjustments, etc.), and update the load accordingly.

• How do I submit an updated rate confirmation for detention/layover?
  Please send all updated rate confirmations (ratecons) to ratecon@basicblock.io. Our team will recognize the matching load number and updated rate, and we’ll make the necessary adjustments.

• How do I submit a TONU with no BOL?
  Please email the rate confirmation (ratecon) to ratecon@basicblock.io. Once the load has been created, go to the Loads page, select the load, and click on the blue link that says “I don’t have a BOL.” Complete the form in full and submit the load.

Note: You may need to return to the Loads page, select the two arrows that form a circle at the top of the page to refresh, and reselect the load before submitting the TONU to our Accounts Payable Team.

This can be done directly in our app under the Settings tab. Navigate to the Users section and select Add. Fill out the form, then click Create—an email invitation will automatically be sent to the new user’s email address.