Pro: cash every trip
Most of each invoice arrives within a day or two, so the next trip's fuel is covered.
Hotshot factoring company: what to check first
Hotshot invoices are smaller, more frequent and spread across more brokers than most semi freight. A factor that's great for a 10-truck van fleet can be a poor fit for a one-ton. Use this checklist on any factor before you sign.
Monthly invoices
See my factoring rateWe refer carriers to a factoring partner and may be paid for referrals.
MILE02CHECKLIST
Score any factor in 8 checks
Tick what the factor you're considering offers. Seven or eight means it's built for hotshot work; fewer means ask about the gaps.
HOTSHOT FACTOR CHECK
0/8
Tick what the factor offers
MILE03WHY HOTSHOTS DIFFER
Why hotshot factoring is different
- Smaller invoices. Fixed fees take a bigger bite out of a $900 load than a $3,000 one.
- More brokers. Partial and expedited freight comes from many brokers, so broker credit checks matter more.
- Fuel first. A one-ton fuels often, and long first legs burn cash before the load pays.
- Non-CDL setups. Some factors are unfamiliar with non-CDL hotshots. Make sure yours isn't.
MILE04PROS AND CONS
Pros and cons for hotshots
Pro: broker checks
A quick credit check before booking keeps you away from shaky brokers.
Pro: less chasing
The factor collects from every broker.
Con: fees on small loads
Fixed fees can push the real rate well above the headline.
Con: agreements
Long terms and minimums fit badly with seasonal hotshot work.
Con: cost over time
A few percent of every invoice adds up over a year.
MILE05SMALL INVOICE MATH
The small-invoice problem
An EXAMPLE hotshot runs a $900 partial. At a 3% fee plus a $15 transfer fee, the real cost is $42, or about 4.7% of the invoice. Batch three loads into one transfer and the same fee drops to about 3.6% per load.
Ask every factor whether fees are per invoice or per transfer, and whether you can batch.
$900 HOTSHOT INVOICE
EXAMPLE
- Fee 3%
- $27
- Transfer fee
- $15
Real rate4.7%
MILE06OILFIELD AND SEASONAL WORK
Oilfield and seasonal hotshot work
Oilfield customers often pay on longer terms and through approval portals, and ag and construction work comes in seasons. Both argue for a factor with no monthly minimums and experience with long-terms customers. Read more on oilfield factoring.
MILE07PAPERWORK ON THE ROAD
Hotshot paperwork that funds fast
- 01Rate con before you roll. Signed and saved on your phone before pickup. It's the first thing the factor checks.
- 02Photo the load at pickup. Straps, chains and the freight, with the BOL in frame. It settles damage questions later.
- 03Every stop signed. Partials often have two or three stops. One missing signature holds the whole invoice.
- 04Upload at delivery. Before you leave the site, while you can still fix a missing signature.
- 05Accessorials with the invoice. Detention times, tarp pay or extra stop pay, backed by paperwork, sent the same day.
MILE08WHEN NOT TO FACTOR
When a hotshot shouldn't factor
Factoring is a tool, not a must. Some hotshot owners are better off without it.
- You have regular direct customers who pay fast. A few local shippers on short terms may cover your cash flow already.
- You run mostly with one or two brokers with quick pay. Their quick pay fee may beat a factor's total cost.
- You've built a cushion. A month of costs saved makes the fee optional.
- Your loads are very small. If fixed fees push the real rate high, reconsider or batch heavily.
MILE09NON-CDL OWNERS
Notes for non-CDL hotshots
Same factoring rules
License class doesn't change factoring; authority, insurance and brokers do.
Lighter loads, smaller invoices
Fixed fees matter even more. Ask for per-transfer pricing.
No drug testing paperwork
Non-CDL drivers aren't in DOT testing, so there's nothing extra to send there.
Watch the weight
A load that pushes you over 26,000 lb combined isn't a load you should be factoring, or hauling.
MILE10COMPARING QUOTES
Comparing two hotshot quotes
Put your typical load into both quotes: say a $1,000 invoice. Add the percentage fee, any per-invoice or per-transfer fee, and the fuel advance fee if you'd use one. Then compare what you'd actually receive. The quote with the lower headline rate isn't always the one that pays you more.
Then compare the terms that don't show up in the math: contract length, minimums, termination fees and recourse period. For a hotshot, flexibility is usually worth a little money. See factoring rates for a quote decoded line by line.
MILE11DISPATCH
Loads that fit, paid fast
Our hotshot desk books loads to your GCWR and deck, checks every broker and plans the reload. You approve every load, and the rate con comes straight to you, ready for your factor. See hotshot dispatch, the freight factoring overview, or start dispatch.
MILE12FAQ
Hotshot factoring FAQ
Q01Do factoring companies work with hotshots?
Yes, many do. Hotshot invoices are smaller than semi invoices and come from many brokers, so look for a factor without per-invoice minimums or fixed fees that eat small loads.
Q02Is there a minimum invoice for hotshot factoring?
Some factors set one, often to keep fixed costs in line; many don't. If your loads are often a few hundred dollars, ask before you sign.
Q03Can non-CDL hotshots use factoring?
Yes. Factoring depends on your authority, insurance and brokers, not on your license class. Non-CDL hotshots with their own authority factor the same way as anyone else.
Q04What does hotshot factoring cost?
A percentage of each invoice plus any fixed fees. Because hotshot invoices are small, fixed fees like transfer charges weigh more. Compare the total cost per typical invoice, not just the headline rate.
Q05Do I need fuel advances for hotshot work?
Not always. They help most on long first legs or when cash is tight. If you have a cushion, skipping advance fees saves money.
Q06Can I factor oilfield hotshot invoices?
Often, though some oilfield customers pay on long terms through approval portals. Factors that work with oilfield invoices know how to handle those.
Q07Should I factor every hotshot load?
Only if it makes sense. Some hotshot owners factor slow-paying brokers and keep quick payers unfactored, if the agreement allows choosing.
Q08How fast do hotshots get funded?
Often the next business day after clean paperwork, sometimes same day for a fee. Late-day uploads and weekend deliveries usually wait for the next business day.
Q09Do factors care what my truck is?
Not much. They care about your authority, insurance, safety record and brokers. A one-ton hotshot is factored the same way as a semi.
Q10Can I switch factors if fees are too high?
Yes, under your agreement's termination terms. Check the notice period and any fee before you sign, so switching later is simple.
Q11Do hotshot factors offer fuel cards?
Many factors offer fuel cards with discounts at participating stations. For a hotshot that fuels often, check the network against your usual stops before counting on the discount.
Q12What if a broker short-pays a hotshot invoice?
Tell your factor right away and gather the rate con and delivery paperwork. Short pays often come from missing accessorial backup or a disputed delivery, which is why clean paperwork matters.
Q13Can I factor a load I booked myself?
Yes. Factoring depends on the invoice and the broker, not on who found the load. Dispatched or self-booked, the paperwork is the same.
Q14Do I need a separate factor for each truck?
No. One factoring agreement covers your company's invoices, whether you run one hotshot or several. Fleets usually get per-truck reports from the same factor.
Q15Can a new hotshot authority factor?
Usually, yes. Factors look mostly at the brokers you haul for, so a new hotshot MC with clean filings and solid brokers can often start factoring from the first load.
See my factoring rate
We refer carriers to a factoring partner and may be paid for referrals.