What is a Notice of Assignment?

A written notice sent to your customer stating that your invoices have been assigned to a factoring provider and that payment must be made to the provider to discharge the debt.

What happens if the broker pays me instead of the factor?

That is called a misdirected payment. You are generally obligated to forward the funds to the provider promptly. Repeated misdirected payments can trigger fees or termination under many agreements.

Will my customers know I factor?

Yes. Standard freight factoring is disclosed by design, because the Notice of Assignment redirects payment. Non-notification arrangements are uncommon in trucking.

Does a new NOA go out when I switch factors?

Yes. The new provider issues its own Notice of Assignment and the prior one should be released, which is why switching is coordinated with the buyout and UCC release.

Learning Center

Notice of Assignment, explained

The NOA is the short letter that changes who your customer pays. It is routine, but misunderstanding it causes some of the most expensive mistakes in factoring.

See My Options Compare Factoring Options

Compare Factoring Options for Your Fleet

Four quick details. No obligation.

Written and reviewed by the HaulFund editorial team · Published August 21, 2026 · Last reviewed August 21, 2026

Educational information for transportation businesses. Not legal, tax or financial advice.

Short answer

A Notice of Assignment is a letter from your factoring provider to your broker or shipper stating that your receivables have been assigned and that payment must go to the provider. Once a customer receives a valid NOA, paying you instead of the provider generally does not discharge their obligation — which is why misdirected payments must be forwarded promptly.

How a notice of assignment changes payment

Where your customer sends payment before and after the NOA goes out.

Before

Customer pays you

Your shipper or broker remits to your own remit-to address.

Notice of assignment

Factor notifies the customer in writing

The NOA states that the invoice has been assigned and where payment must now go.

After

Customer pays the factor

Payment sent to the old address may not discharge the debt, so remit-to updates matter.

Practical effect: your customer's AP department updates the remit-to record, and the factor handles follow-up on the open invoice. This is a general description of how notices of assignment usually work, not legal advice on your contract.

Key takeaways

The NOA redirects payment; it does not change your rate confirmation or the load terms.
Factoring in trucking is disclosed by default — your customers will know.
Misdirected payments are your responsibility to forward, often within a stated window.
Switching providers requires a new NOA and a release of the old one.
Some brokers keep an internal list of factoring providers they will and will not work with.

What an NOA typically contains

Identification of the carrier and the factoring provider.
A statement that present and future receivables have been assigned.
Remittance instructions — address, ACH details or lockbox.
A statement that payment to anyone else may not discharge the debt.
Contact details for the provider's accounts receivable team.

Practical consequences on the road

If a broker sends you a check after an NOA is in place, do not deposit it. Contact your provider and follow their misdirected-payment process. If you are leaving a provider, confirm the release notice reaches every active debtor, otherwise payments can sit with a company you no longer work with while your new facility waits.

Frequently asked questions

What is a Notice of Assignment?: A written notice sent to your customer stating that your invoices have been assigned to a factoring provider and that payment must be made to the provider to discharge the debt.
What happens if the broker pays me instead of the factor?: That is called a misdirected payment. You are generally obligated to forward the funds to the provider promptly. Repeated misdirected payments can trigger fees or termination under many agreements.
Will my customers know I factor?: Yes. Standard freight factoring is disclosed by design, because the Notice of Assignment redirects payment. Non-notification arrangements are uncommon in trucking.
Does a new NOA go out when I switch factors?: Yes. The new provider issues its own Notice of Assignment and the prior one should be released, which is why switching is coordinated with the buyout and UCC release.

Keep reading

What is a UCC filing?

The public filing that sits behind the NOA.

Switching factoring companies

Coordinating buyout, NOA and UCC release.

Trucking factoring guide

Where the NOA fits in the funding process.

Factoring Learning Center

All guides in one place.

Done with the research? Compare your factoring options.

Compare My Options

Takes 2 minutes. Five fields.

Tell us your MC number and how much you invoice a month, and we'll work to identify available factoring options based on your business profile and participating provider availability.

See My Options

Legal information notice. This content is provided for general educational purposes and is not legal advice. Contract rights, UCC matters, termination requirements, and factoring obligations depend on the applicable agreement, facts, and law. Businesses should consult qualified legal counsel regarding their specific circumstances.

HaulFund is a factoring broker and is not a direct lender or factoring provider. HaulFund connects businesses with independent third-party factoring providers. HaulFund does not make final credit, underwriting, approval, or funding decisions. Rates, fees, advance amounts, funding times, contract terms, and eligibility vary by provider and are subject to provider approval.