Some carriers see factoring as a practical tool to keep cash flow moving, while others associate it with high costs, confusing agreements, and chargebacks. According to Summar Financial, the real issue is not factoring itself but how it has been explained, sold, or structured. The company believes factoring should be clearer, more transparent, and more useful for carriers — helping them not only get paid faster but also protect their business and make better decisions.
Factoring Should Not Be Complicated
At its core, factoring exists because many carriers cannot afford to wait 30, 45, or even 60 days to get paid for a delivered load, according to Summar Financial. With ongoing expenses such as fuel, maintenance, insurance, truck payments, tolls, payroll, and personal costs, waiting weeks for payment can limit operations or keep carriers from accepting new opportunities. Factoring helps close that gap. But for factoring to be truly useful, carriers need to understand exactly what they are getting: what it costs, what services are included, what risks are covered, and what responsibilities remain their own.
Factoring Should Be More Than Fast Payments
Getting paid sooner is important, but it should not be the only value, according to Summar Financial. A strong factoring partner should also help carriers run their business more effectively. That may include broker credit checks, billing support, collections, document review, and guidance when an invoice is delayed or a broker fails to pay. For a small carrier without an internal accounts receivable team, such support can make a real difference — allowing them to focus on booking profitable loads instead of chasing payments.
The Risk of Misunderstood Protection
One of the most confusing areas in factoring is not the difference between recourse and non-recourse, but the intricacies of non-recourse itself. George McWilliams, VP of Business Relationships at Summar Financial, explained on the Long Haul Podcast: "If it’s not explained properly, a carrier might think: ‘I’ll never have to worry about that particular invoice again.’ Well, what non-recourse really does is, depending upon parameters that it has set, that invoice may still come back to you under certain conditions." Exclusions may include documentation issues, cargo claims, service disputes, broker deductions, or invoices that do not meet certain requirements. Carriers should ask the following questions before signing:
- What is covered?
- What is not covered?
- When could a chargeback still happen?
- What happens if the broker does not pay?
- What happens after 90 days?
- What happens if the broker becomes insolvent?
A transparent factoring partner should answer those questions clearly before there is a problem, according to Summar Financial.
What Is Summar Shield?
Summar Shield is Summar Financial's response to a clear market need: carriers need faster payments but also stronger protection when they haul. With Summar Shield, carriers can receive protection beyond 90 days on eligible, pre-approved invoices. That means if a broker is approved and does not pay for a covered reason, the carrier is not left to carry that risk alone. The idea is simple: help carriers make better decisions before they move a load and give them more confidence after it is delivered. Summar Shield does not replace good business practices but adds a layer of security.
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