FreightConnect

Core Features / Settlements

Settlements & Factoring

How carrier payments are processed, reconciled, and settled. Understand the cash flow and integrate factoring if needed.

Settlement Workflow

After delivery and POD receipt, here's how payment flows:

  1. Load Closed — POD received and verified; settlement is triggered
  2. Invoice Generated — carrier receives an itemized invoice with load details
  3. Payment Due — carrier has 14 days to pay (standard; can be adjusted)
  4. Reminder Sent — at day 7, carrier gets a gentle reminder if unpaid
  5. Payment Received — carrier pays via ACH; funds land in your account within 1-2 business days
  6. Reconciliation — payment is matched to invoice; closed out

Most carriers pay on time. Those who don't get flagged and their FSC score is penalized.

Settlement Reconciliation

Go to Settlements → Pending to see:

  • Shipments awaiting POD (not yet closed)
  • Invoices sent but payment pending
  • Overdue invoices (past 14 days)

For overdue invoices, click Follow Up to:

  • Message carrier — automated "friendly reminder" (customizable)
  • Escalate — mark as priority; manager reviews
  • Assign to collections — hand off to your accounting team for manual follow-up

Factoring Integration

If you need cash flow immediately instead of waiting 14 days:

  1. Set up a factoring relationship with a freight factoring company (e.g., Apex, Nacha, TruckersEdge)
  2. Connect your factoring account to FreightConnect in Settings → Integrations → Factoring
  3. When you accept a carrier quote, optionally enable Factor This Load

When enabled:

  • The factoring company pays you 90–95% of the invoice immediately
  • They collect from the carrier directly (you get 100% if the carrier pays; less the factoring fee if they don't)
  • The factoring company assumes collection risk

Typical factoring fees: 1–3% of invoice value (depending on load volume and your credit).

Supported Factoring Partners

  • Apex Factoring
  • Nacha
  • TruckersEdge
  • Wex
  • Fuelcard (integrated)

More partners are added regularly. Request integrations at matt@freightconnect.ai.

Disputed Settlements

If a carrier disputes an invoice (e.g., "I delivered early but was charged the full rate"):

  1. Carrier submits a Dispute with details
  2. You receive a notification; can respond with evidence (BOL, POD, carrier agreement)
  3. System shows the dispute status: Open → In Review → Resolved or Escalated
  4. If you can't agree, a neutral arbitrator reviews and decides

Disputed invoices stay in your Settlements → Pending view until resolved.

Rate Adjustments

Sometimes a carrier delivers but circumstances changed:

  • Partial load (shipper couldn't provide full weight)
  • Detour for weather/accident
  • Carrier requested a small rate reduction

You can issue a rate adjustment from the load details:

  • Increase — issue a credit memo if the carrier went above and beyond
  • Decrease — issue a debit memo if they ask for less (rare, but fair if warranted)

The adjustment is applied to the next invoice or the current one if still pending.

Payment Setup

Ensure your bank account is configured:

  1. Go to Settings → Banking
  2. Enter your routing number and account number (ACH)
  3. Verify via two micro-deposits (we deposit $0.01–$0.99; you confirm the amounts)
  4. Once verified, carrier payments start flowing

Your account is encrypted and never shared with carriers.

Settlement Reports

Go to Analytics → Settlements for:

  • Monthly settlement summary — total revenue, costs, margin, net cash collected
  • Overdue aging — invoices > 30 days unpaid, by carrier
  • Payment reconciliation — match payments received to invoices sent
  • Factoring impact — cash received immediately vs. net after factoring fees
  • Trend analysis — settlement time trends (are carriers paying slower?)

Export these reports for your accountant (CSV, PDF).

Accounting Integration

If you use QuickBooks, Xero, or Wave:

  1. Go to Settings → Integrations → Accounting
  2. Select your platform and authenticate
  3. Map your FreightConnect accounts to your GL accounts:
    • Revenue account (shipper charges)
    • Cost of goods (carrier payments)
    • Factoring expense (fees)
    • A/R shipper (invoices issued to shippers)
    • A/P carrier (invoices to pay carriers)

From then on, each load settlement auto-posts a journal entry. No manual data entry needed.

Tax Considerations

Settlement records are crucial for tax filing:

  • Revenue — total shipper charges (taxable)
  • Cost of freight — total carrier payments (deductible)
  • Gross margin — taxable income after freight costs

FreightConnect generates a 1099 summary for your accountant at year-end (if you paid vendors $600+). Your accountant uses this to reconcile your books.

Dispute Resolution SLA

FreightConnect commits to resolving settlement disputes within:

  • 14 days — for routine disputes (simple disagreement on rate)
  • 30 days — for complex disputes (fraud, quality issues)
  • 60 days — for escalations involving insurance or legal review

You'll get regular status updates throughout the process.

Next Steps

Last updated: April 2026