A hotshot factoring company that's built for small invoices from many brokers

Minimums. A monthly minimum written for a semi fleet can be impossible for one hotshot in a slow month, and a minimum fee per invoice turns a 3% rate into something much higher on a short load. Ask about both, and ask for the answers in writing. If a factor won't say, assume they exist.

Fuel advances. Published advance fees make the point. TBS publishes $19.99 for a 40% advance and $24.99 for 50%, and OTR Solutions $15 to its fuel card or $24 by Comchek. On a $3,000 load those fees are under 1%. On a $600 hotshot load, a $24.99 advance is about 4% of the invoice, on top of the factoring fee.

Many brokers. Hotshot freight comes from a wide mix of brokers, some small and some new. A factor's broker credit checks are worth a lot here: before you accept a load, ask whether the factor will buy that broker's invoice. A "no" is a warning you want before the trailer is loaded, not after.

Paperwork on short runs. Several loads a day means several sets of paperwork a day. Photograph each BOL and POD at the dock, flat and complete, and keep them grouped by load. A missing signature on one small invoice can hold up the whole batch while it's sorted out.

Non-CDL limits. Factoring doesn't care about the CDL, but your loads do. A non-CDL hotshot has to stay within the weight ratings that keep it out of CDL territory, which shapes which loads it can take and what they pay. Factoring speeds up payment on those loads; it doesn't change what you can haul.

Recourse or not. With many small brokers in the mix, the risk of one going under is real, but each loss is small. A $700 unpaid invoice under recourse hurts; it rarely ends the business. That often makes recourse, with its lower rate, a sensible choice for a hotshot, as long as you lean on the factor's broker checks to avoid the weakest payers. If one broker supplies most of your freight, the math changes and non-recourse cover is worth pricing.

Questions a hotshot should ask a factor

• Is there a minimum invoice amount, or a minimum fee per invoice?
• What does each payout method cost, and can I batch uploads into one payout?
• Is there a monthly minimum, and what happens in a month I don't reach it?
• What does a fuel advance cost, and is the fee flat or a percentage?
• Will you buy invoices from small and newer brokers, and can I check them before booking?
• How long is the contract, and what does it cost to leave?

Write the answers down next to each quote. The factor with the lowest percentage is often not the cheapest for a hotshot once these answers are priced in.

Getting set up. Setup is the same as for any carrier: your MC or DOT number, a W-9, your certificate of insurance, bank details and the signed agreement. The factor checks your authority and your brokers, then sends each broker a notice of assignment so payment goes to the factor. Do this before your next week of loads, not halfway through it, so every invoice in the week can go through the same routine. If you're switching from another factor, get the release letter sorted first, or brokers will keep paying the old one.

Once it's running, the weekly rhythm is simple: deliver, photograph, upload, fuel, repeat. The time you used to spend chasing small payments from a dozen brokers goes back into driving and finding the next load. And when a broker pays late, it's the factor making the follow-up calls, not you from a truck stop parking lot between loads. Our freight factoring overview covers the rest of the basics.