Dump truck factoring
Dump truck factoring companies: turning a week of signed tickets into cash before the contractor pays
Dump work bills differently from freight. Many small daily jobs, billed by the hour or by the ton, backed by tickets, sent to contractors who may pay in 30, 60 or more days. Some dump truck factoring companies handle that well; some focus on freight brokers and won't. Here's how contractor invoices get factored, what proof a factor needs, and where the money can get stuck.
Retainage: the part of the invoice a factor may not touch
On many construction jobs, the owner or general contractor holds back part of each payment until the work is finished. That's retainage. On federal construction contracts, the Federal Acquisition Regulation says retainage shall not exceed 10% of the approved estimated amount, and it's meant for contractors that aren't making satisfactory progress. State and private jobs set their own rules, and the hold-back can flow down to subcontractors.
Why it matters for factoring: a factor advances against money it expects to collect soon. Retained amounts may not be paid until the project closes, so many factors won't advance against them. If your contract has retainage, tell the factor up front and expect the advance to cover only the part that's due now.
How dump truck invoices get factored: hourly vs per ton
The same EXAMPLE week billed two ways. Switch between them to see the invoice lines, the weekly total, and the proof a factor will want attached. Rates are EXAMPLE inputs; set your own.
| Day | Billed | Amount | Proof the factor needs |
|---|---|---|---|
| Mon | 9 hrs | $990 | Daily time ticket, signed by the foreman |
| Tue | 10 hrs | $1,100 | Daily time ticket, signed by the foreman |
| Wed | 8 hrs | $880 | Daily time ticket, signed by the foreman |
| Thu | 10 hrs | $1,100 | Daily time ticket, signed by the foreman |
| Fri | 9 hrs | $990 | Daily time ticket, signed by the foreman |
| Week | One invoice to the contractor | $5,060 | 5 signed time tickets attached |
Same EXAMPLE week: hourly $5,060 · per ton $3,906. Never load past your legal limit to win on per-ton; the scale ticket decides the tons.
Either way, the factor is buying an invoice backed by tickets. The cleaner the tickets, the faster the advance, and the less room the contractor has to argue.
Why dump invoices aren't freight invoices, side by side
Factors built around freight brokers handle one kind of paperwork. Construction customers bring another. Know the differences before you pick a factor.
| Freight broker invoice | Dump contractor invoice | |
|---|---|---|
| Backup paperwork | Rate con, BOL, signed POD | Signed haul, scale or time tickets |
| Invoices per week | One per load | Often one per job per week, or per day |
| Pricing basis | Flat rate per load | Hourly, per ton or per load |
| Credit check on | The broker | The contractor (and sometimes the owner) |
| Hold-backs | Rare | Retainage on some jobs |
| Common disputes | Damage, shortage, detention | Load counts, hours, ticket signatures |
| Lien rights | Not usually relevant | Mechanic's lien and waiver rules vary by state |
General comparison, not legal advice. Lien and payment rules depend on your state and contract.
Disputed load counts: how dump haulers lose money after the work is done
A contractor that says you hauled 18 loads, not 20, has started a dispute. Factors generally don't advance on disputed amounts, and non-recourse coverage usually excludes disputes. Prevent them instead.
- 01
Get every ticket signed at the drop
Foreman or site contact, printed name, date and time. A ticket signed at day's end from memory invites arguments.
- 02
Photograph tickets before you pull out
Paper tickets get wet, lost and illegible. A clear photo the same minute is your backup.
- 03
Match your count to theirs daily
Text the site contact your load count or hours at the end of each day. Fix gaps while everyone remembers.
- 04
Keep the scale tickets
Per-ton work lives and dies on scale tickets. Keep every one with the delivery ticket it matches.
- 05
Know the billing contact
Invoices sent to the wrong office at a big contractor can sit for weeks. Get the AP contact on day one.
What dump truck factoring companies need from you
Usually required
- Your invoice, by job and date
- Signed haul or scale tickets, or signed daily time tickets
- The contractor's name and billing contact for credit approval
- A contract, PO or job number if the contractor uses one
- Your authority or registration, insurance and W-9
Ask about up front
- Will you buy contractor invoices, not just broker invoices?
- Do you need original paper tickets?
- How do you treat retainage and lien waivers?
- Do you credit-check contractors before I start a job?
Some factors focus on freight brokers and shippers and don't buy construction invoices. Ask before you sign, and check each factor's published terms.
Seasonal cash: planning for the slow months
In much of the country, dump work slows in winter and when it rains. Factoring helps during busy months, when invoices pile up faster than contractors pay. It doesn't help when there's nothing to invoice, and a contract with a monthly minimum can charge you exactly when work is thin.
Plan for it: pick a factoring agreement without a monthly minimum, or with one under your slowest month. Use factoring through the busy season to build a cash cushion, and know how to pause or leave if you need to. Some owners keep the truck working in winter hauling salt, aggregate stockpiles or demolition debris.
Dump work lined up, offered to you first
No setup fee. Month-to-month. You confirm every job.
Load offer · Example
1 of 3
Dallas, TX to Memphis, TN
53 ft dry van · Live load, drop and hook at delivery
- Loaded
- 452 mi
- Deadhead
- 18 mi
- Rate
- $2.32/mi
- Gross
- $1,050
- Dispatch fee 5%
- -$53
- You keep
- +$997
Every load comes to you like this. You confirm or pass, and the rate con goes straight to you.
Dump truck factoring questions
Can dump truck invoices be factored?
Often, yes, if the factor buys construction invoices and approves your contractor's credit. You send the invoice with signed haul, scale or time tickets, and the factor advances part of it, then collects from the contractor. Some factors only buy freight broker invoices, so ask first.
How do I factor hourly dump truck work?
Bill the contractor by the hour, with a daily time ticket signed by the foreman or site contact for each day. Many owners send one weekly invoice per job with the week's tickets attached. The factor checks the tickets match the invoice before advancing.
Do factors accept contractor invoices?
Some do and some don't. Factors that focus on freight work mostly with brokers and shippers. Those that buy construction receivables will credit-check the contractor, ask about retainage and lien waivers, and want signed tickets. Ask before you apply.
What is retainage?
Money the owner or general contractor holds back from each payment until the job is finished. On federal construction contracts, FAR 32.103 caps it at 10% of the approved estimated amount. State and private jobs set their own rules. Factors often won't advance against retained amounts.
How fast can a dump truck owner get paid?
As fast as the factor funds after approving the invoice and tickets. RTS Financial publishes cash in 24 hours or less, with same-day pay after uploading invoices in the RTS app for its factoring. The first invoice with a new contractor usually takes longer, because the factor has to set up and check that customer.
We refer carriers to RTS Financial and may be paid for referrals. It doesn't change your rate. Disclosure. The dispatch side is on dump truck dispatch, and factoring basics are in freight factoring.
Ask whether your contractors qualify
Referral to RTS Financial. We may be paid for referrals.