In this revealing episode of the BulkLoads Podcast, Sarah Hansen from Smart Freight Funding exposes the hidden dangers behind predatory factoring companies—and how truckers are unknowingly locking themselves into damaging agreements. With nearly a decade of experience managing credit and working directly with carriers, Sarah lays out the most common pitfalls in factoring: auto-renewing contracts, hefty termination fees, reserve holds, forced exclusivity, and UCC liens that can strangle your business’s flexibility.

Unlike many factoring providers, Smart Freight operates without contracts or reserve holds, offering transparent 3% fees with no penalties for low volume or nonuse. This episode also dives into the difference between recourse and non-recourse factoring, how Smart Freight handles UCC filings, and the extreme costs some carriers have faced trying to break free from bad deals—one trucking company was even charged over $100,000 to get out!

Whether you're a new carrier trying to understand factoring or an experienced fleet owner re-evaluating your options, this episode is packed with industry insight, red flags to watch for, and practical steps to take control of your receivables and cash flow.