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Factoring Emerges as a Strategic Liquidity Tool for Small and Midsize Carriers Amid Ongoing Freight Volatility

CLARENDON HILLS, Ill., March 18, 2026 (GLOBE NEWSWIRE) -- Compass Funding Solutions, the factoring division of Compass Holding LLC, reported that demand for freight factoring is stabilizing across the Midwest as trucking markets show early signs of recovery following several years of freight rate pressure.

Compass Holding LLC, headquartered in Clarendon Hills, Illinois, is a diversified transportation and business services company with operations in freight financing, truck sales and rentals, logistics solutions, insurance, and travel centers.

The Midwest remains one of the country’s most active trucking corridors, making shifts in freight rates and payment cycles particularly significant for regional carriers. Rising per-mile freight rates and persistent driver shortages are influencing how trucking businesses manage cash flow, plan equipment investments, and maintain operational continuity.

“We have seen factoring demand stabilize and begin to increase,” said Nathan Streeter, Vice President of Administration at Compass Holding LLC. “Higher per-mile rates and ongoing driver shortages are helping carriers regain financial stability and plan more effectively for the year ahead.”

Compass Funding Solutions

Recent increases in fuel prices are also contributing to cost pressures across the trucking sector. Many carriers are relying on fuel surcharges to offset rising expenses. Higher fuel costs are typically passed through freight pricing, which can influence freight rates and cash flow planning for transportation businesses.

Industry conditions over the past several years pushed many carriers to strategically rely on factoring and alternative financing to maintain liquidity during prolonged periods of freight rate pressure. These financing tools have helped trucking businesses maintain working capital and continue operations during volatile market cycles.

Despite those challenges, early indicators suggest some carriers are beginning to reinvest in equipment after several years of caution. Compass Funding Solutions has seen an increase in equipment purchases during the first quarter of 2026, traditionally the slowest season for trucking activity.

Streeter said the shift may reflect improving market confidence but cautioned that disciplined financial management remains critical during freight market cycles.

“One of the biggest mistakes carriers make during volatile cycles is purchasing overpriced equipment and growing too quickly,” Streeter said. “Trucking operates on supply and demand. What goes up eventually comes down, so careful financial planning and responsible growth are key to long-term success.”

For more information on invoice factoring and working capital solutions for carriers, visit:
https://www.compassfs.net/factoring/

About Compass Holding LLC
Founded in 1997 and based in Illinois, Compass Holding LLC is a diversified company with operations across trucking, logistics, insurance, and financial solutions. Its factoring division, Compass Funding Solutions, provides carriers with invoice factoring and strategic liquidity tools to manage cash flow, maintain operational continuity, and support business growth. The company serves trucking businesses across the Midwest with flexible financial solutions tailored to the industry’s unique demands.

Learn more about Compass Funding Solutions at: https://www.compassfs.net

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c0f755ac-2c1e-42d8-9ce7-1e96e81fc9e1


Contact

Nathan Streeter
V.P of Administration

Compass Holding LLC
Email: n.streeter@compassholding.net
Phone: (708) 796-7295

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