Factoring fee or broker short-pay? How to reconcile a trucking settlement

A factoring deposit that is lower than the rate-confirmation amount does not, by itself, prove that a broker short-paid the load. First reconcile what the broker says it paid, then separately reconcile what the factor deposited and deducted.

Keep the two reconciliations separate

There are usually two different payment records to compare:

• Broker settlement or remittance: the amount the broker says it paid for the load, including linehaul, fuel surcharge, approved accessorials, and any stated deductions or adjustments.
• Factoring statement or deposit detail: the amount credited by the factoring company after any contract fees, reserves, advances, chargebacks, or other listed adjustments.

Do not label a factoring fee as a broker deduction. Equally, do not assume every difference is a valid factoring charge. Identify which document and which party records each amount.

A practical four-document check

1. Signed rate confirmation and amendments. Record the agreed linehaul, fuel surcharge, accessorial rates, approval requirements, and any written changes.
2. Proof of delivery and accessorial evidence. Match the load reference and delivery details. Keep detention timestamps, lumper receipts, layover approvals, TONU communications, and any evidence required by the rate confirmation.
3. Broker remittance advice. List the gross amount, every deduction or adjustment, and the reason the broker gives. Compare the listed amount with the agreed rate and supported accessorials.
4. Factoring statement and deposit. Start with the broker remittance amount shown as received by the factor. Then list each fee, reserve, advance, or adjustment separately and compare the resulting net amount with the bank deposit.

Example: why the deposit can differ from the broker payment

This is a made-up arithmetic example, not a typical fee schedule or a statement about any factoring company:

• Broker remittance shown: $2,000.00
• Factoring fee shown: $40.00
• Reserve withheld: $100.00
• Expected deposit from these listed items: $1,860.00

In this example, the broker remittance is still $2,000. The $140 difference between that figure and the deposit is explained by the two factoring-statement items. If the broker remittance itself is only $1,900 against a documented $2,000 agreement, that is a separate $100 variance to investigate with the broker.

What to do when the numbers still do not match

• Write down the exact variance and the document where it first appears.
• Ask the broker for a written explanation and supporting detail for any broker-side deduction or adjustment.
• Ask the factor to identify the contract provision and transaction entry for each fee, reserve, advance, or chargeback.
• Keep the load number, dates, signed rate confirmation, POD, remittance, factoring statement, and relevant written communications together.
• Do not assume a deduction is permitted or prohibited based on this checklist alone; review the governing documents and obtain qualified advice when needed.

General educational information only, not legal, accounting, tax, or financial advice. Confirm amounts and rights against the original rate confirmation, factoring agreement, remittance records, and other governing documents.

Educational information only. Not legal advice; verify against the official source and your own records before acting.