Notice of assignment (NOA)

Why brokers take it seriously

Under the Uniform Commercial Code, section 9-406(a), the party that owes the money may pay the original creditor "until, but not after," it receives a notification that the account has been assigned and that payment is to be made to the assignee. After that, paying the carrier instead of the factor doesn't discharge the debt, and the broker could have to pay twice.

Source: UCC 9-406, Cornell Legal Information Institute · checked 2026-10

In practice

When you start factoring, the factor sends an NOA to each broker you work with, and you add it to your carrier packet. From then on, those brokers pay the factor's remit-to address.

Carrier

Legal name, MC and USDOT

Assigned to

Factor's legal name

Remit payment to

Factor's address or account

Covers

All invoices from this date

Signed by

Carrier, often the factor too

Effective

On receipt by the broker

EXAMPLE layout. Each factor uses its own form.

Switching factors

1. Get a release letter (letter of release) from your old factor once your account with them is settled.
2. Send the release and the new NOA together to every broker.
3. Confirm each broker updated its records before the next invoice goes out.

Mismatched NOAs are a common reason payments get stuck or sent to the wrong place. The carrier packet checklist covers keeping them current.

Can I take quick pay from a broker with an NOA on file?

Usually not on that broker's loads, since payment has to go to the factor. Some factoring agreements let you choose which customers to factor; see factoring vs quick pay.

Does an NOA cover every invoice?

That depends on your factoring agreement and the notice. Many cover all invoices to that customer from the notice date. Read both before you sign. More in freight factoring. This isn't legal advice.