DAT Factoring Service Temporarily Shut Down by Court Order — Cash Flow Chaos Incoming?

by TRUCKERS VA
(UNITED STATES)

Introduction: When Your Fast Pay Suddenly Stops

DAT — yeah, that DAT — the go-to load board for many small carriers, just got hit with a court order that’s got its factoring service in a chokehold. As of now, their factoring division has been temporarily halted, leaving a lot of truckers asking one question:

“Where’s my money?”

Whether you used DAT’s factoring yourself or just watched this news drop like a bent landing gear, the ripple effects are real. Let’s unpack what happened, what it means for your business, and what you can do before your next load leaves you cash-dry.

What Happened: DAT’s Factoring Pulled Over by the Courts

DAT’s factoring service — the one that promises fast payment in exchange for a cut of your freight bill — has been temporarily halted due to a court order related to a legal dispute involving their financial partner.

While DAT hasn’t revealed all the nitty-gritty details yet, the pause means:

Carriers waiting on invoices may face delays in payment

No new invoices will be factored under this program

Current clients are being referred to support channels… but answers are thin

Factoring 101 (For the Rookies)

If you’re new to the game: factoring is a way for truckers to get paid faster by selling their invoices to a third party (like DAT). You get your money within 24–48 hours, and they collect from the broker later. In return, they take a small percentage — usually 1–5%.

It’s a lifeline for small fleets and owner-ops who don’t want to wait 30–60 days for payment. But when the factor stops operating? It’s like someone cutting your fuel line mid-haul.

Who’s Feeling It the Worst?

Owner-Operators – These guys often depend on factoring to cover fuel, tolls, repairs — even food. A one-week delay can crush cash flow.

Small Fleets – Managing payroll and maintenance without factoring means dipping into reserves or racking up debt. Not ideal in a slow freight market.

New Authorities – Just getting started? You probably don’t have a credit line yet. DAT factoring was one of the few options. Now you’re left scrambling.

Brokers – Some brokers are nervous, too. If DAT was handling collections, now that’s paused — meaning back-end delays could ripple down the line.

What You Should Do RIGHT NOW

If you’ve got invoices pending or were planning to use DAT’s service, here’s your emergency checklist:

1.

Contact DAT immediately – Use their factoring support number or online portal to find out if your payment is delayed or in limbo.

2. Start shopping for backup factoring – Services like RTS, OTR Solutions, or Apex are ready to onboard stranded carriers. But read the fine print — don’t jump from the frying pan into the broker-frying fire.

3. Communicate with your brokers – Let them know you’ll be invoicing direct or using a new factor. You need to protect your payment terms and get written confirmation if anything changes.

4. Tighten up spending – Delay non-urgent repairs, buy fuel smart, and preserve cash. A week or two delay in factoring could be brutal without a cushion.

Industry Reaction: Nervous Eyes and Backup Plans

Drivers – Most are mad, confused, or both. “I didn’t even know they could freeze factoring like that,” one driver said. “What am I supposed to do now?”

Other Factoring Companies – They’re circling like vultures… but some are genuinely trying to help. Expect a wave of cold calls and marketing blasts.

DAT – Trying to stay tight-lipped, but the PR damage is already happening. Trust is fragile in trucking, and nothing breaks it faster than messing with a driver’s check.

Analysts – Some are warning that this could spark a shift away from load board-integrated financial tools. Carriers might now separate who they use for loads… and who they trust with their money.

The Bigger Picture: What This REALLY Means

This isn't just about DAT. It's about how fragile the financial side of trucking really is. One court order, and thousands of drivers are left exposed. If you’ve built your operation around a single tool — whether it's DAT, Convoy, or anyone else — this is your wake-up call.

Diversify your tools, secure your payments, and build backup plans before you need them.

Bottom Line: Always Know Where Your Money’s Coming From

DAT’s factoring pause might be temporary, but the impact is real. If you’re waiting on a check or planning your next load, don’t just hope it works out — get proactive. Trucking is hard enough without playing the “Will I get paid?” game.

Stay alert, stay paid, and never trust a single company with your whole operation.

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