A Notice of Assignment (NOA) is a formal notice sent to a broker or shipper informing them that a carrier has assigned the right to receive payment on an invoice to a factoring company, and instructing them to remit payment directly to the factor instead of the carrier.
The NOA is what legally redirects payment, so it typically needs to be on file with a broker before a load factored through that broker’s paperwork will be recognized and paid correctly. Some brokers require the NOA before load-booking, others accept it with the invoice.
Because an NOA affects who gets paid and how, carriers should keep clear records of which brokers have a current NOA on file and coordinate any factoring provider changes carefully to avoid a broker paying the wrong party.
This article is general educational information, not legal, financial, tax, or insurance advice. Confirm current requirements with the applicable government agency or a qualified professional before acting.