Government Load
Factoring
Federal agencies pay in 30-60 days. Freight factoring lets you get paid the same day you deliver. Here's everything you need to know.
Federal agencies take up to 30-60 days to pay. For an owner-operator running fuel, truck payments, and insurance in between — waiting 60 days for a $6,500 DOD payment is not realistic.
Freight factoring solves this entirely.
- You haul the load and deliver to the federal agency
- Submit your BOL and POD to your factoring company
- They verify the documents — usually same day
- You receive 90-97% of the invoice value — same day or next business day
- The factoring company collects from the agency on their 30-60 day schedule
- You receive the remaining balance minus the fee once the agency pays
When you factor a government invoice, your factoring company files a Notice of Assignment (NOA) telling the agency to redirect payment to them. This is fully legal under the Assignment of Claims Act (31 U.S.C. § 3727).
- Experience with FEMA, DOD, and GSA invoices specifically
- Same-day or next-day advances
- Transparent flat fees — no hidden charges
- No long-term lock-in contracts
- Knows the NOA process for federal agencies
Freight factoring fees are a legitimate business expense and tax-deductible. At a 25% tax rate, a 5% factoring fee effectively costs you closer to 3.75%. Work with an accountant familiar with trucking businesses.