What is Factoring? Let’s be honest, the idea of factoring can be confusing and scary but once you understand it and make use of it, it can be the best thing you do for your business. A factoring company is a third party or financial company that purchases your invoice after you drop a load. The factoring company pays you for the invoice (minus a small factoring fee) and you get paid within 1 to 2 days instead of 30-60 days. It then becomes the responsibility of the “factor” or financial company to get paid on the invoice. You will be able to better manage your trucking business because you got paid faster and are not waiting for a check in the mail.