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Factoring for a New Authority: A Plain Guide for Your First Six Months

By The Trucking Factoring Guide editorial team · How we check
Published October 26, 2026 · Fact-checked October 26, 2026

Disclosure: We don't currently earn money from any company mentioned on this page, and links to companies go to their official sites with no tracking. We may earn referral fees from some companies in the future; if we do, we'll label those links and update this notice. Payments will never change what we write, and when a fact comes from a company's own website, we say so.

Your authority just went active. You have a truck note, insurance and fuel to pay for this week, and your first broker says the check comes in 30 days or more. That gap is why so many new owner-operators look at factoring before they've hauled a single load.

This guide is for carriers whose MC is under about six months old. It covers whether you can get approved, what the factor checks, the paperwork, the first-load steps, and the contract terms that catch new authorities most often. Every company term below comes from that company's own website, checked in October 2026.

Can you factor with a brand-new MC?

Usually, yes. A factor buys invoices that your brokers owe, so it cares mainly about whether those brokers pay. Your time in business matters less. The companies say this themselves:

"Approved" means the factor will open an account for you. It doesn't mean it will buy every invoice. That leads to the most important habit a new authority can build.

The factor approves your brokers one at a time

OTR explains the difference clearly: "Qualifying for a factoring relationship is different from having an individual broker approved for funding. Each broker or shipper still needs its own credit review." If the factor won't approve a broker, it won't advance money on that broker's loads.

So check the broker before you book, not after you deliver. Most factors give you a credit lookup in their app or portal. Apex says it gives "24/7/365 online access so you can know instantly how much credit will be extended to one of your customers," and Porter advertises free broker credit checks. If the people whose job is collecting from brokers won't buy that broker's invoice, treat it as a warning about the load, even if you weren't planning to factor it.

What to have ready when you apply

Each factor asks for slightly different paperwork. Here's what the companies list:

Company What its own page asks for
OTR Solutions Business name and contact info, EIN and formation details, MC and/or USDOT number, owner ID, W-9, proof of insurance, banking info, broker or shipper info if you're already hauling
Apex Capital A short application, proof of your authority and insurance, and a list of your current customers if you're already operating under your own authority
Porter Freight Funding Active MC or DOT authority, commercial auto insurance, a signed rate confirmation from a broker, and basic business documents like a W-9

OTR also asks you to disclose "existing liens or UCC filings." That's important if you borrowed startup money. A lender that already filed a lien on your business assets can slow down or block a factor's approval, so mention it up front.

Your first factored load, step by step

  1. Check the broker's credit in your factor's app before you accept the load.
  2. Haul it and get clean paperwork: signed rate confirmation and a proof of delivery (POD) or bill of lading. OTR lists "the rate confirmation and proof of delivery (POD), along with any applicable supporting documents, such as lumper receipts or scale tickets."
  3. Submit the invoice through the factor's app or portal.
  4. The factor sends the broker a Notice of Assignment (NOA). OTR describes it as telling "your brokers and shippers to send payments directly to your factoring company instead of to you." That notice has legal weight. Under the Uniform Commercial Code (UCC § 9-406), once a broker receives it, the broker can no longer pay you directly to settle that debt. It has to pay the factor.
  5. You get the advance. If the broker pays you by mistake, forward it. Apex's FAQ says: "Do not deposit a check from a customer that you've factored with us."

Five traps that hit new authorities hardest

1. Intro rates tied to a long contract

Low intro rates are common, so read what's attached to them. Porter's site advertises a "1.5% Rate for the First 60 Days," and its application page says the offer "Applies to the First 60 Days. 1-year recourse contract + 95% advance rate, does not apply to Sprinter Vans or Boxed Trucks." When asked what happens after 60 days, Porter says "A standard flat rate applies based on volume and fleet size."

That isn't necessarily a bad deal. Porter says the contract has "no termination fees with 60 day notice." But you're picking a 12-month relationship, not a 60-day rate. Ask for the post-intro rate in writing, put both rates into the Factoring Cost Calculator, and compare the full year.

2. Contract length and the way out

In your first year, everything changes: your lanes, your brokers, maybe your truck. OTR's own contract guide says "A shorter agreement, or one without a long minimum term, gives a new authority room to switch providers if circumstances shift in the first year." Some factors advertise flexible terms. Apex says it "doesn't lock clients into long-term contracts, nor do we charge any monthly fees or cancellation fees," and Porter's application page lists "1 year, 6 month, or month-to-month contracts" for recourse factoring.

Whatever the term, find the renewal date and the notice deadline before you sign. Our guide to factoring contract red flags and how to leave a factor explains what to look for.

3. "Choose your loads" has a catch

Spot factoring sounds flexible, and it mostly is. But both Apex and OTR say that once you factor one invoice from a broker, you factor them all. Apex: "once you choose to factor invoices for a specific customer, we do ask that you factor all invoices for that customer." OTR: "Once you begin factoring with a particular broker, additional invoices from that broker must be factored until a release is provided." Don't plan on factoring only the slow-paying loads from a broker.

4. Recourse when you have no cushion

Under recourse factoring, an unpaid invoice comes back to you, usually taken out of later settlements. A single truck in its first months has the least cushion to absorb that. Porter's intro offer is a recourse contract. Porter says chargebacks come "only after 90 days." OTR sells a "True Non-Recourse" program but notes it covers "qualifying" non-payment from approved brokers. Read our recourse vs. non-recourse guide before choosing.

5. Fuel advances and bundled fuel cards

Fuel advances can carry a new authority through the first trip, but they aren't free. OTR says advances of "up to 50% of the linehaul amount" cost "$15" to the OTR Fuel Card or "$24" via Comchek. Add those to the calculator. NASTC (the National Association of Small Trucking Companies) also warns about tying your fuel card to your factoring account: "When your fuel card depends on your factoring balance, one hiccup can shut down both cash flow and fuel access."

Don't lose sight of the new-entrant clock

Factoring only works while you can legally haul. FMCSA monitors new carriers for an initial 18-month new-entrant period and conducts a safety audit "within 12 months after beginning operations." FMCSA lists violations that mean an automatic failure of that audit, including having no drug and alcohol testing program and "operating a motor vehicle without having in effect the required level of insurance." If you fail and don't complete the required corrective action, FMCSA says your registration can be revoked. Without active authority there's nothing to factor, so keep your compliance file in order from day one.

A first-month example (illustrative numbers only)

These numbers are made up to show the math. They aren't a quote from any company.

Say you're a single truck with eight loads in your first month at an average of $2,000 each, which is $16,000 in invoices. Your quote is a flat 3%, and you take two fuel advances at $15 each. Your brokers average 35 days to pay, and the factor advances 95%.

That APR looks high next to a bank loan. The point is to compare it with your real alternatives, such as broker quick pay, a credit card or a line of credit, and with what it costs to park the truck because you can't buy fuel. Try your own numbers in the Factoring Cost Calculator.

Questions to ask before you sign (new-authority version)

  1. Do you take my MC at its current age? Can I apply before my authority goes active?
  2. What's my rate after any intro period ends, in writing?
  3. Is this recourse or non-recourse? After how many days can an invoice be charged back?
  4. How long is the contract? Does it renew automatically, and what's the notice deadline?
  5. Is there a termination fee, monthly minimum, or minimum volume?
  6. Do I have to factor every invoice, or every invoice from a broker I've factored once?
  7. What does each payout method cost (ACH, wire, same-day, instant)?
  8. What do fuel advances cost, and is my fuel card tied to my factoring account?
  9. How do I check a broker's credit before booking, and is that free?
  10. What happens to the Notice of Assignment and the UCC lien if I leave?

Factors that say they work with new authorities

These companies have public pages describing factoring for new or startup carriers. We don't earn anything from these companies today (see the disclosure at the top). Compare the written terms, not the ad. The "New-authority friendly?" column of our comparison grid has each company's source and the date we checked it.

FAQ

Can I factor with a brand-new MC number? Usually. Factors mainly judge your brokers' credit. OTR, Porter, Triumph and Apex all say on their own sites that they work with new authorities. Each broker still has to be approved separately.

Can I apply before my authority is active? With some factors, yes. OTR says you "do not need an active operating authority to apply." You can't factor a load until your authority is active and you've hauled under it.

Will the factor check my personal credit? It depends on the factor. OTR says it "does not require a credit check to get started," and Porter advertises "No Impact to Your Credit." Ask each company directly.

What rate should a new authority expect? There's no single market rate. Porter's new-authority page states that "Most new carriers pay between 3% and 5% per invoice." That's one company's statement, not an industry survey. Get written quotes, including the rate after any intro period, and compare them in the calculator.

Is broker quick pay better than factoring? Sometimes. Quick pay has no contract, but each broker sets its own fee and timing. Treat the quick pay fee like a factoring fee and run both through the calculator for your real loads.

Do I have to factor every load? Not always. Apex and OTR let you choose which brokers to factor. Once you factor with a broker, both say you must keep factoring that broker's invoices.

What's a Notice of Assignment? It's a notice telling your broker to pay the factor instead of you. Once the broker receives it, the broker has to pay the factor (UCC § 9-406). When you leave a factor, you need that notice released. See how to leave a factoring company.

Related guides: Trucking factoring rates and fees · Recourse vs. non-recourse · Factoring contract red flags and how to leave

This article is general information, not financial or legal advice. Terms change; confirm current terms with each company in writing before signing.

Sources

All sources last verified October 2026.