The words on your paperwork, explained.

Charges on top of the linehaul rate, such as detention, lumper fees, layovers or a truck ordered not used. They belong on the invoice with receipts attached.

See also Detention Lumper fee TONU

The part of an invoice a factoring company pays you up front, usually within a day. At RoadEase that is typically 95% to 97% of the invoice.

See also Advance rate Reserve

The advance shown as a percentage of the invoice. A 97% advance on a $5,000 invoice puts $4,850 in your account.

See also Advance Reserve

BOL. The document that describes the freight, the shipper and the receiver, and serves as the receipt when you pick up. One of the three papers needed to fund a load.

See also Proof of delivery Rate confirmation

The filing that names a process agent in each state for your company. It is required before your operating authority becomes active.

See also Operating authority

The company that arranges the move between a shipper and a carrier. Brokers usually pay carriers on net terms, which is the wait factoring removes.

See also Net terms Broker credit check

A look at how reliably and how quickly a broker pays before you haul for them. RoadEase runs these free for new brokers.

See also Broker Days to pay

How long a broker actually takes to pay, on average. It is often longer than the terms printed on the rate confirmation.

See also Net terms Broker credit check

Miles driven with an empty trailer, usually on the way to the next pickup. They cost fuel and time without earning a rate.

See also Linehaul

Pay for time spent waiting at a shipper or receiver beyond the free time agreed on the rate confirmation.

See also Accessorials

Selling an unpaid invoice to a factoring company for cash now. It is not a loan, so there is no debt to repay; the factor collects from the broker.

See also Advance Notice of assignment

What the factoring company keeps for advancing the money and collecting the invoice, usually a percentage of the invoice value.

See also Reserve Advance rate

Part of a load's pay advanced after pickup and before delivery, so fuel is covered on the way. RoadEase offers fuel advances.

See also Advance

International Fuel Tax Agreement. Carriers running qualified vehicles in more than one jurisdiction file quarterly fuel tax reports. Fuel card reports make that filing easier.

The base rate for moving freight from origin to destination, before accessorials and fuel surcharge.

See also Accessorials Deadhead

An online marketplace where brokers post loads and carriers look for freight. Dispatchers use them to find and negotiate loads for you.

See also Broker

A fee paid to third-party workers who unload a trailer at the receiver. Keep the receipt and bill it as an accessorial.

See also Accessorials

When payment is due after the invoice date, for example Net 30 or Net 45. Factoring turns those 30 to 45 days into about one.

See also Days to pay Broker

An arrangement where the factor takes the loss if a broker cannot pay because it goes out of business. The exact conditions depend on the agreement.

See also Recourse factoring

NOA. A letter that tells a broker to pay the factoring company for invoices you factor. It is a routine part of setting up factoring.

See also Factoring Broker

Permission from FMCSA to haul regulated freight for hire across state lines, identified by an MC number.

See also USDOT number BOC-3

A driver who owns or leases their truck and runs it as a business, either under their own authority or leased to a carrier.

See also Operating authority

POD. The delivery receipt signed by the receiver. Together with the BOL and rate confirmation it completes an invoice package.

See also Bill of lading Rate confirmation

The broker's written agreement for a load: rate, pickup, delivery and terms. It must be signed before factoring.

See also Bill of lading Proof of delivery

An arrangement where you buy back or replace an invoice if the broker does not pay within the agreed period.

See also Non-recourse factoring

The part of an invoice not advanced up front. It is held until the broker pays, then released to you under your agreement.

See also Advance Factoring fee

Truck ordered, not used. Compensation when a load is cancelled after you were dispatched to it.

See also Accessorials

The identifier FMCSA assigns to companies operating commercial vehicles in interstate commerce. Brokers and insurers check it.

See also Operating authority