Freight brokers and logistics companies often pay carriers on a shorter timetable than shippers pay invoices. That timing gap can grow quickly when load volume rises, even when the brokerage is profitable. This guide explains how to document carrier payables, shipper receivables, gross margin, concentration and operating needs before comparing potential funding structures.
Define the brokerage model and funding request
Describe whether the company operates as a traditional freight broker, third-party logistics provider, managed-transportation company, agent-based brokerage or a combination. Separate brokerage revenue from any asset-based carrier or warehousing activity because the cash cycles, assets and risks differ.
State the use of funds and timing. A request to bridge eligible carrier payments against documented shipper receivables is different from financing software, hiring agents, opening an office or supporting a new customer contract.
The CashMigo freight broker and logistics funding page provides a focused starting point. Request an amount supported by a receivables and cash-flow plan, not only by projected load count or gross billings.
Map carrier-payment and shipper-collection timing
Build a weekly schedule showing when carriers are due, when each shipper invoice is expected to be collected and how disputes, documentation delays or extended terms could change that date. Distinguish standard terms from quick-pay programs and exceptions.
Show both gross freight billings and net brokerage revenue or gross margin. Carrier pass-through expense can make top-line revenue appear large while the amount available for payroll, technology, overhead and debt service is much smaller.
Reconcile the schedule to bank deposits, transportation-management records, carrier settlements and the general ledger. A thirteen-week cash forecast should include a slower-collection case and a higher carrier-cost case.
Tell CashMigo what the business needs, how much and how soon. We will review the request and help identify potential next steps.
Check My Funding Options →Analyze receivables, disputes and concentration
Prepare an accounts-receivable aging by shipper with invoice dates, due dates, balances, payment history and any offsets, claims or documentation problems. Identify invoices that are unbilled, disputed, past due or subject to chargebacks.
Calculate the percentage of receivables and net revenue tied to the largest shippers. A strong customer can still create concentration risk if one delayed payment affects many carrier obligations at once.
Invoice factoring may be considered for qualifying receivables, but providers can review shipper credit, invoice eligibility, assignment terms, dilution, concentration, proof of service and disputes. Not every invoice or customer will qualify, and advance rates, reserves and fees vary.
Control carrier payables, authority, bond and compliance
Prepare a carrier-payable schedule showing due dates, quick-pay discounts, aging, disputed loads and the amount required to keep carrier relationships current. Explain how carrier selection, fraud controls, cargo claims and documentation are handled.
Keep broker authority, surety-bond status, insurance and relevant registrations current. A funding provider may review these items and material compliance events, but funding does not replace legal, regulatory, insurance or bond obligations.
Identify liens, existing factoring arrangements, UCC filings, offsets, trust or reserve requirements and contract restrictions that could affect receivables or cash. Review conflicts with qualified legal and financial professionals before signing a new agreement.
Plan technology, payroll and customer growth
List transportation-management, load-board, visibility, accounting, cybersecurity, fraud-prevention and communications systems separately. Include implementation, integration, training, data migration and ongoing subscription costs rather than only the initial quote.
Show employee and agent roles, compensation, payroll taxes, commissions and expected productivity. New capacity can consume cash before it produces stable net revenue, particularly when a new shipper has long payment terms.
For a new lane or customer contract, document expected loads, rates, carrier cost, gross margin, payment terms, service requirements and downside assumptions. Avoid treating an unsigned pipeline or best-case volume as collected revenue.
Build and stress-test a thirteen-week cash forecast
Start with opening cash, expected shipper collections and other verified receipts. Subtract carrier payments, payroll, taxes, technology, rent, insurance, bond costs, claims, refunds, existing obligations and proposed financing payments by week.
Stress-test slower shipper payments, lower load volume, compressed margins, higher spot carrier rates, a claim and the loss of a concentrated customer. The goal is to see whether the business can remain current without immediately depending on additional financing.
Tie the requested amount and structure to the largest forecasted shortfall plus a measured reserve. A smaller revolving or receivables-based need may be different from a fixed project that could fit term financing.
Prepare a clear, secure starting file
Useful starting records may include recent operating bank statements, year-to-date and prior-year financial statements, accounts-receivable aging, carrier-payable aging, gross-margin reports, customer concentration, current obligations and a clear sources-and-uses schedule.
Add operating authority and bond status, material shipper or agent agreements, receivables-assignment information and technology or payroll budgets when relevant. Explain unusual disputes, claims, chargebacks, liens or collection delays directly.
Begin through CashMigo's 60-second funding check using non-sensitive business information. Do not place bank credentials, Social Security numbers, driver identity records, payment-card data, bills of lading or confidential customer documents in a general website form.
Compare structure and payment pressure
Compare gross amount, reserves, deductions, net proceeds, total cost, payment amount and frequency, term or expected duration, collateral, liens, guarantees, recourse, concentration limits, default terms and early-payoff treatment.
For factoring, understand which invoices are eligible, when reserves are released, how disputes and dilution are handled, whether the arrangement is recourse or non-recourse as defined by the agreement, and who communicates with customers.
Place every proposed payment and fee into the cash forecast after carrier obligations and essential operating expenses. Review contracts with qualified legal, accounting and financial professionals; speed should not replace a complete evaluation.
Frequently asked questions
Can invoice factoring help pay carriers sooner?
Potentially. Providers may review eligible shipper invoices, proof of service, shipper credit, disputes, dilution, concentration and assignment terms. Timing, advance rates, reserves, fees and recourse depend on the agreement.
Is gross freight billing the same as brokerage revenue?
No. Gross billing can include the amount paid to carriers. Net brokerage revenue or gross margin more clearly shows what remains for payroll, technology, overhead and other obligations.
Why does shipper concentration matter?
If one shipper represents a large share of receivables or margin, a late payment, dispute or lost contract may affect many carrier payments and the broader cash plan.
Do authority and bond status affect a review?
They may. Providers can review operating authority, surety-bond status, insurance, compliance history and contract requirements as part of the business and transaction analysis.
What should not be submitted through the short funding check?
Do not submit bank credentials, Social Security numbers, private driver data, payment-card information, bills of lading or confidential customer documents. Start with non-sensitive business information.
