In this lesson
- Profit is what the books say you earned. Cash is what is in the bank today. Carriers close because of the second one.
- Factoring is selling an invoice for cash now, minus a fee. The headline percentage is one of at least eight numbers that decide the real cost.
- Convert every quick pay, factoring and fuel advance offer into a cost per month and an annual rate before you compare them. A 3 percent fee on a 34 day invoice is roughly 39 percent per year.
- Non-recourse protects against a broker that cannot pay. It does not protect against a broker that will not pay over a dispute. Read the definition in the contract, not the brochure.
- A one truck carrier paid on net 30 terms needs roughly five to seven weeks of operating cash before the first broker check arrives. Most new carriers do not have it, which is why factoring exists.
- Tax and bookkeeping content here is an educational overview only. Every carrier needs a CPA who knows trucking, and every tax number must be checked on irs.gov for the current year.
This lesson is part of the full course
Lesson 1 is free. Lesson 16 and the rest of the 21-lesson course (about 37 hours), the final exam, the verifiable certificate and the bonus templates unlock with the full course.
- All 21 lessons with worked examples, case studies and exercises
- Final exam and a certificate anyone can verify with a QR code
- Bonus: profit calculator, load and payment tracker, call and email scripts
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Educational material only. It is not legal, tax or financial advice, and nothing here promises any level of income. Regulations, fees and market conditions change, so confirm current requirements with FMCSA and a qualified professional.