Carriers came into February 2026 with a market that was firming slowly rather than recovering outright. Spot rates were edging higher, capacity was thinner than before the downturn, and fuel had started to climb again. The constant underneath all of it: most freight still pays on 30 days or longer, and the gap between delivery and payment is where small carriers get squeezed.
Freight market: slow gains, not a breakout
DAT's January figures, published later in February, put the national average spot van rate at $2.32 a mile, up 3 cents from December and 17 cents from January 2025. Reefer averaged $2.81 and flatbed $2.85. Contract van rates held steady at $2.48. Load volumes were mixed: DAT's van and reefer volume indexes fell 4% from December while flatbed rose 2%.
That is a modest improvement, not a recovery. For a carrier that factors, a higher average invoice means a larger advance on each load, so even small rate gains show up in weekly cash flow.
Capacity was tighter than it had been during the long freight recession, as marginal carriers left the market over 2023 to 2025 because of insurance, equipment and fuel costs. Tighter capacity tends to favor carriers with clean safety records, consistent broker relationships and creditworthy customers. It also means factors are generally working with a more stable client base than they were a year or two earlier.
Regulation: what was on FMCSA's list
FMCSA's regulatory agenda had dozens of open items heading into 2026, and trade press expected many to slip past their target dates. Topics on the list included broker transparency, ELD requirements, Clearinghouse violation information, exams for new carrier applicants, autonomous driving systems and automatic emergency braking.
Two things to take from that for factoring:
- Safety record matters to your factor. Many factors look at a carrier's safety profile and authority status before approving an account. A poor inspection and violation history can affect approval, advance rate and access to non-recourse terms.
- Documentation requests may grow. Owner-operators leased to a carrier but invoicing on their own should expect a factor to ask for paperwork showing independent business status and how the lease is structured, especially where state contractor-classification rules have tightened.
Fuel turned higher in late January
The Energy Information Administration's weekly national diesel average fell to $3.459 a gallon on 12 January, then rose to $3.624 by 26 January and $3.681 on 2 February. That is not a spike, but it narrows margins for small carriers that buy fuel at retail. Insurance, equipment financing and parts costs were also still elevated.
When costs rise, the wait for payment hurts more. Factoring lets a carrier cover fuel, driver pay and truck notes on delivery instead of waiting the 30 to 45 days or more that many brokers take.
Why non-recourse factoring got more attention
Under non-recourse factoring, the factor takes the loss if an approved broker or shipper cannot pay because of insolvency. Under recourse factoring, the carrier owes the money back. Carriers asked about non-recourse terms more often in early 2026 because:
- some brokers struggled financially in late 2025
- slow payment became more common
- carriers wanted protection against a customer failing outright
The trade-offs are real. Non-recourse usually costs somewhat more, credit approval is stricter, and coverage is limited to customers the factor approves. Read the definitions closely: most non-recourse agreements cover insolvency only, not disputes, short pays or fraud. Our guide to recourse vs non-recourse factoring covers what each type actually excludes.
Technology and broker credit checks
Factors kept investing in digital tools: mobile invoice upload, same-day ACH funding, online dashboards, fuel card integration, and connections to TMS software and load boards. Several also promote automated broker credit scoring that draws on payment history, days-to-pay averages and dispute patterns. Treat these as useful screening, not a guarantee, and ask how a factor's credit decisions affect your recourse exposure.
Rates, fees and contract terms
Factoring pricing was broadly stable heading into 2026. The rate any carrier is quoted depends on monthly volume, the credit quality of its brokers, and whether the deal is recourse or non-recourse. Competitive pressure showed up mostly in terms rather than headline rates: lower or no volume minimums, shorter contracts, smaller termination fees and flat-fee pricing.
Before signing, check:
- how the discount rate is calculated and whether it rises the longer an invoice is outstanding
- when and how the reserve is released
- recourse terms and how many days before a recourse buyback
- notice-of-assignment wording, UCC filing scope, contract length and early-termination clauses
Our breakdowns of what freight factoring costs, hidden factoring fees and how to read a factoring contract go through each of these.
Broker payment behavior
Standard broker terms remained around net 30 to net 45, with some stretching longer. A few brokers offered quick-pay programs that settle faster in exchange for a discount. For a carrier that does not factor, those discounts reduce what each load pays. For a carrier that does, the factor usually handles collections, so the comparison is between the quick-pay discount and the factoring fee.
Fuel cards and bundled services
Many factors bundle fuel cards, IFTA reporting help, back-office support, broker credit checks and load board access. Those extras can be worth real money, but compare them on actual savings rather than as a reason to accept a higher factoring rate.
Fraud and double brokering
Identity theft, fraudulent operating authorities and double brokering remained persistent problems. Factors act as a check by verifying rate confirmations, bills of lading, broker identity and active authority before funding. That scrutiny protects carriers from hauling loads they will never be paid for.
Outlook for spring 2026
Spring usually brings more construction freight for flatbeds and produce volume for reefers, and retail restocking can tighten capacity. A seasonal lift in volume would raise invoice values and help cash flow. Fuel and interest rates were the risks to watch.
If you are comparing factors this year, start with transparent fees, a solid broker credit database, a clear choice between recourse and non-recourse, funding speed, and responsive service. Our freight trucking factoring page lists factors that work with carriers, and the market trends overview tracks how conditions changed through 2025 and 2026.