New Authority · Day 1 Funding
Factoring for New Authority Carriers: How to Get Funded Day 1
You just got your MC number. Brokers pay net 30-60. Without factoring, you'll skip your first loads waiting on cash. Here's how to set up factoring before your authority even activates, plus which providers actually accept new MCs.
Bottom line: Outgo (by DAT) is the cleanest Day-1 path. NOA in minutes, flat fee, integrated with DAT One.
Affiliate disclosure: We earn a commission on signups. Costs you nothing.
The cash flow problem nobody warns new carriers about
You've spent $8K-26K getting your authority. Insurance is locked in. ELD is installed. You're ready. Then you book your first load and the broker says: "net 45." Forty-five days. Meanwhile fuel, insurance, truck payment, and food don't wait.
Three options:
- Wait 45 days for the first check. Skip loads in between. Your truck sits.
- Borrow at 18-25% APR. Credit card or short-term loan. Eats your margins for months.
- Factor at 2-3% per invoice. Get paid same-day. Keep booking loads.
Math check on a $2,000 load with 2.5% factoring: you net $1,950 today. The $50 cost lets you fuel up and book the next load tomorrow. Most owner-ops net more revenue per month using factoring than waiting.
Day-1 to first-load timeline
The fast track from MC granted → factored cash in your bank account.
- Day 0
MC number granted by FMCSA
Required before any factor will sign you up.
Cost: $300
- Day 0-1
Buy BIPD + cargo insurance, file BMC-91X
Must show on FMCSA Licensing & Insurance for authority to activate.
Cost: $8K-15K/yr (premium financed monthly)
- Day 1
BOC-3 process agent on file
Required for activation. Many factoring providers verify this.
Cost: $50-100
- Day 2-3
Authority active on SAFER
Status must read AUTHORIZED. Factors verify here.
- Day 3
Sign up for Outgo factoring
Get NOA issued same-day. Now you can send carrier packets.
Cost: Free signup
- Day 3
Sign up for DAT One
Find your first loads with the largest broker network.
Cost: $40-80/mo trial
- Day 3-4
Build broker-ready packet
MC certificate, COI, W-9, NOA, voided check — send to brokers.
- Day 4-5
Get onboarded with CH Robinson + TQL
Both accept new authority Day 1. Onboarding takes 1-3 business days.
- Day 5-7
Book and deliver first factored load
Submit POD + rate confirmation + invoice to Outgo. Get funded same-day.
Cost: +revenue
What you need to sign up for factoring
All factors will ask for the same docs. Have these ready before you sign up to skip back-and-forth:
- Active MC number (visible on SAFER as AUTHORIZED)
- USDOT number
- BMC-91X insurance filing on FMCSA Licensing & Insurance
- BOC-3 process agent on file
- EIN letter from IRS
- Voided check or bank wire info
- W-9 form
- Signed factoring agreement (provided by factor)
Best factoring companies for new authority
Outgo (by DAT)
⭐ Easiest path for new authority
Day-1 signup, NOA in minutes, flat fee, no contract, native DAT One integration. Built around new owner-operators.
OTR Solutions
Strong alternative
Also new-authority friendly. Month-to-month. Less integration than Outgo but solid track record.
Apex Capital
Once established (30+ days)
Many Apex programs prefer 30-90 days of operating history. Strong long-term fit but harder Day-1.
RTS Financial
After volume builds
Higher minimums and longer contracts. Better fit at $10K+/mo invoice volume, not Day 1.
See our full factoring comparison for the 6-company breakdown.
Why we recommend Outgo for new authority
- Day-1 signup. No 30-90 day operating history requirement. As soon as your MC is AUTHORIZED on SAFER, you can sign up.
- NOA issued in minutes. Most factors take 1-3 business days for first NOA. Outgo emails it instantly so you can build your carrier packet immediately.
- Flat-fee pricing. No tiered rates that punish low-volume new carriers. One transparent rate per invoice.
- No long-term contract. Month-to-month. If your business model changes, no early-termination fees.
- DAT One integration. Most new authority carriers use DAT One for finding loads. Outgo is built into the same ecosystem — rate confirmations flow through.
Brokers that work with new authority Day 1
Even with factoring, many brokers want 30-90 days of authority before they'll book you. These accept new authority carriers from Day 1:
- CH Robinson Navisphere — onboards new authority in 1-3 days, large network, mid-margin freight
- TQL (Total Quality Logistics) — Day-1 friendly, similar margin profile to CHR
- Coyote Logistics — accepts new authority, requires full carrier packet
- Werner Logistics — accepts new authority, lane-dependent
- Direct shippers via DAT One — many shippers post directly, less broker-onboarding friction
See the 14-document broker-ready checklist to make sure you have everything brokers need before reaching out.
FAQ
Can I get factoring as a brand new authority carrier?
Yes. Most major factoring companies — Outgo, Apex Capital, OTR Solutions, RTS — accept new authority carriers from Day 1. Some require 30+ days of operating history. Outgo (by DAT) and OTR Solutions are typically the easiest.
What documents do I need to sign up for factoring?
Active MC number on SAFER, USDOT number, BMC-91X insurance filing, BOC-3 process agent on file, EIN letter, voided check or bank account info, W-9, and signed factoring agreement. Outgo can process new authority signups in under 30 minutes once these are ready.
How fast can I book my first factored load?
Same day if you already have authority active. The signup-to-first-funded-invoice timeline: factoring signup (30 min) → NOA issued (instant) → broker booking (same day on DAT One or via CH Robinson/TQL) → POD delivered → invoice submitted → funded same-day or next-day. Total 1-3 days from cold start to first cash.
What is a Notice of Assignment (NOA)?
The NOA is a legal document your factoring company sends brokers. It tells the broker to pay the factoring company directly instead of you. Brokers will not release payment to anyone but the address on the NOA. New authority carriers MUST have an NOA before sending their first carrier packet to brokers. Outgo issues NOAs within minutes of signup.
Should new authority carriers use recourse or non-recourse factoring?
For new authority, recourse is usually fine if you vet brokers via DAT credit scores. Non-recourse adds 0.5-1.5% in fees and only protects against broker bankruptcy. Most owner-operators stick with recourse and use credit checks for protection.
How much should new authority carriers expect to pay in factoring fees?
Factor fees run 1.5-3.5% per invoice depending on contract. New authority carriers typically pay the higher end (2.5-3.5%) until volume builds. Flat-fee programs like Outgo are usually transparent about pricing tiers — confirm at signup.
Will brokers work with new authority carriers using factoring?
Yes — most major brokers (CH Robinson, TQL, Coyote, Werner) accept factored payment. Many require 30-90 days of authority. For Day 1 brokers, focus on CH Robinson and TQL — both onboard new authority within 1-3 business days.
What if my MC number is still pending?
You cannot factor invoices without active MC authority. Most factors require AUTHORIZED status on SAFER. Use the time during the 4-8 week MC processing wait to get your insurance, BOC-3, and bank account ready so you can sign up for factoring the day your MC activates.
Don't let cash flow kill your new authority
Outgo: free signup, NOA in minutes, same-day funding. Built for new owner-operators.
Reviewed by Don Grazio · UC Bureau Compliance Lead
Don has 12+ years working with motor carriers on FMCSA compliance, including new entrant audits, MCS-150 filings, BMC-91 insurance setups, and ELD compliance. UC Bureau researches FMCSA regulations (49 CFR Parts 380–399) directly with carriers across the U.S. and Canada. Content is fact-checked against current federal regulations. UC Bureau is not affiliated with the U.S. Department of Transportation or FMCSA — we provide tools and guides to help carriers stay compliant. Learn more about UC Bureau →