Best factoring company for trucking options

Maintaining sufficient cash flow for your trucking company doesn’t need to be complicated. With one of the best invoice-factoring companies for the transportation industry, you can receive the money you need to pay your bills for a small fee upfront. 

In this guide, you’ll discover the top factoring companies for trucking and learn more about this business strategy. These businesses specialize in invoice factoring for trucking companies and have the industry-specific experience to help you succeed.

And when you’re finished reading, check out the other content in our ‘Finances of factoring’ article series:

• What is a factoring company in trucking and how does it help?
• How freight invoice factoring impacts trucking business finances
• Accounts receivable financing vs factoring
• Can factoring be used for temporary payroll funding?
• Best factoring company for trucking

Quicklook: Best factoring company for trucking

• Best for trucking industry expertise: TAFS
• Best for non-recourse factoring: Nationwide Commercial Credit, Inc.
• Best for customer service: OTR Solutions
• Best for instant payments: TruckSmarter — find factoring
• Best for OTR trucking: TAB — find factoring
• Best for flexibility: Porter Freight Funding — find factoring
• Best for fast turnaround time: RTS Financial — find factoring
• Best for advance rates: Apex Capital — find factoring
• Best for digital invoice management: Triumph Business Capital — find factoring

What is invoice factoring?

Invoice factoring is a financing method that allows trucking companies and freight brokers to obtain quick access to cash tied up in their outstanding invoices and accounts receivable. It works by selling unpaid commercial invoices to a factoring company at a small discount.

The factoring company then assumes responsibility for collecting payment on those invoices directly from the customers, while providing a large majority of the invoice value (typically 70-90%) as an upfront lump sum payment to the trucking company soon after the invoices are sold. This immediate influx of working capital provides carriers with faster cash flow to pay drivers and operating expenses while waiting 30-90 days for customers to pay invoices.

Factoring fees are charged on a per-invoice basis as a discount percentage with rates varying based on invoice risk, creditworthiness, industry dynamics and other variables. Factoring enables transportation companies to access working capital, improve liquidity, get compensated faster, and focus their efforts on moving loads without waiting extended periods to get paid.

How does invoice factoring work?

In nearly every industry, it’s common for clients not to pay their invoices immediately after a company performs services. Instead, companies will typically have to wait up to thirty days to receive payment for the jobs they complete. 

When businesses have plenty of available cash, this problem is not an issue. However, trucking companies also have bills, such as payroll, vehicle repairs and other expenses. If there is a gap between a company’s income and expenses, factoring is an option that allows them to receive working capital upfront for their pending invoices. 

Instead of waiting for the customer to pay their invoice, the business sells it to trucking factoring companies at a discount. The trucking factoring company is now responsible for collecting payment from the customer and earns the difference between the amount they purchased the invoice for and what the original client pays. 

Types of factoring in the trucking industry

There are a few different types of factoring services for trucking companies used to improve cash flow against unpaid invoices:

• Recourse factoring: With recourse factoring, the factoring company takes over handling the invoices and collecting payments from the trucking company’s customers. They assume the risk if customers default on paying. Recourse factoring deducts around 1-3% off the invoice amounts purchased.
• Non-recourse factoring: Non-recourse factoring still has the factor managing invoicing/collections, but the trucking company shoulders payment default risk. Rates range from 3-5% of invoice totals.
• Spot factoring: Spot factoring allows truckers to sell select invoices to a factor on a one-off basis as needed for immediate funds, rather than sell all their receivables. This flexibility preserves the ability to collect payments directly too.
• Hybrid factoring: Hybrid factoring blends recourse and non-recourse models, with factors assuming just a portion of the default risk for a rate in the middle of the two. This provides a balance of risk transfer and savings.

9 best factoring companies for trucking 

Here’s a closer look at what the best trucking factoring companies can offer trucking businesses like yours.  

TAFS

With over 20 years specializing in transport and freight factoring, no firm understands truck drivers’ working capital and cash flow management needs better than TAFS. By funding approved invoices within 24 hours and charging competitive base rates as low as 1.5%, TAFS provides the fast liquidity injection necessary for truckers to stay productive and profitable.

It also saves truckers 10 to 85 cents per gallon by partnering with 1,200+ national fuel centers at steep discounts only available to TAFS clients. Additionally, TAFS can assist you with additional finance-related services and business consulting.

Best for: Trucking industry expertise

Services: 

• Recourse and non-recourse factoring 
• Open 365 days per year 
• Strong partnerships that can result in higher-paying freight  
• Industry partnership discounts
• Fast turnaround times, including one-hour advances
• Fuel discounts

Special features: 

• 24-hour turnaround options
• Nationwide fuel discounts
• Low rates for one-truck companies
• Open 365 days per year 

Benefits:

• Fast funding
• Recourse and non-recourse factoring
• Positive industry reputation
• Industry experience

Disadvantages: 

• Loan amounts and rates not provided upfront 
• Difficult to converse with customer service agents 

Nationwide Commercial Credit, Inc.

Nationwide Commercial Credit, a newly established division of 1st Commercial Credit, is designed to provide non-recourse factoring services specifically for the transportation industry. It focuses on serving entry-level Class 6 to Class 8 trucking companies, as well as freight brokers and freight forwarders. Backed by a substantial $200 million credit insurance policy with Allianz Trade, Nationwide Commercial Credit offers robust financial solutions.

Best for: Non-recourse factoring services

Services:

• True non-recourse factoring
• Initial funding in 24 hours
• Free transportation management system
• Automated reporting
• Fuel card discount
• Immediate fuel advances at up to 50%
• 24/7 freight broker credit checks

Special features:

• Offers formal freight broker credit approvals or denials in real-time
• Simplified process requiring no invoices; carriers can upload load confirmation and signed BOL for immediate funding.
• Fuel advances available after load pickup, with extended hours until 9 p.m. on weekdays and 3 p.m. EST on Saturdays
• Support from an extensive dispatcher network
• Competitive fuel card discounts
• Bilingual support with Spanish-speaking representatives available
• Flexible acceptance criteria, including low credit scores and blemished backgrounds
• Chapter 11 post petition factoring

Benefits:

• Clear, straightforward rates and comprehensive, white-glove service for entry-level carriers
• Transparent, hassle-free experience

Disadvantages: While funding is usually disbursed on the same day 80% of the time, there can be occasional delays extending to the following day, particularly with newly established brokers.

OTR Solutions

OTR Solutions prides itself on its five-star rated customer service. They adhere to a ‘no voicemail policy,’ meaning whenever you call, they pick up. Each factoring client is assigned a full account team comprised of factoring experts who are familiar with you and your account. Instead of getting on-hold music and having to explain who you are using account details when you call, you’ll reach your account manager right away, who knows you by name.

Best for: Customer service

Services:

• Dedicated account management team
• True non-recourse factoring
• Industry leading load board and technology partnerships
• Easy invoicing via client portal and mobile app
• Dedicated account management teams
• Free credit checks
• Brokerage factoring programs

Special features:

• Free 24/7 broker checks
• Also offers fuel card and premium banking services designed specifically for truckers

Benefits:

• Fast funding
• No chargebacks
• Easily accessible support
• Industry experience
• Access to lumper and fuel advances

Disadvantages: Rates are not available online

Pricing: Contact OTR Solutions for details

TruckSmarter

TruckSmarter is known for how quickly it pays its customers. Along with instant payment upon invoice approval directly into driver accounts, TruckSmarter gives all of its factoring customers a 2.5% flat rate plus a noteworthy 1% cash back program. 

TruckSmarter is the only freight factoring company that provides instant access to funds. Drivers do not need to wait for ACH payments to enter their bank account. As soon as an invoice is approved, drivers can access funds and spend their money instantly.

Best for: Instant payments

Services: 

• Instant pay upon invoice approval
• Billing, invoicing and collections
• Broker credit checks 
• Exclusive fuel discounts
• Chicago-based customer service team
• Access to load board at no extra cost

Special features: 

• Low 2.5% rate for all business sizes
• Instant pay upon invoice approval
• No additional fees
• No hidden fees
• No minimums 
• No annual contracts  (month-to-month)
• Exclusive, nationwide fuel discounts
• Highly rated, Chicago-based customer service team

Benefits:

• Fast funding
• Non-recourse factoring
• Positive industry reputation
• Industry experience
• No monthly requirements
• No start-up fee
• Free broker credit checks
• Easy in-app invoicing
• Exclusive, nationwide fuel discounts
• Provides buyout options
• No credit approval needed
• Access to cardless fuel discounts, up to $1.50/gal off
• Access to 100% free load board that combines all of the loads from the industry’s biggest load boards, so you can see all available loads in one place

Disadvantages: 

• Free money transfers into and from other bank accounts must be initiated in the app.
• While desktop capabilities are anticipated in 2024, factoring is currently all done through the mobile app.

TAB

TAB is a full-service bank in Utah that can help you grow and manage your trucking business. Since 1998, TAB has specialized in meeting the unique needs of over-the-road truckers and has the experience necessary to be a reliable freight-factoring partner. Its services are tailored to suit transportation companies’ needs with easy-to-use solutions, favorable rates and fast service. 

Best for: OTR trucking companies

Services: 

• Recourse factoring
• Selective invoicing
• Billing and collections
• Freight broker factoring

Special features: 

• Omnichannel customer support  
• QuickBooks integration
• No minimums
• 24-hour funding

Benefits: 

• Fuel advances and cards 
• Mobile app

Disadvantages: 

• Long term contract lengths
• No non-recourse factoring options 

Porter Freight Funding

Formed in 2011, Porter Freight Funding is the factoring arm of Porter Capital. Through acquiring Decatur’s Resource Billing Services, Porter Freight Funding has nearly 100 years of cumulative experience in the transportation factoring sector. Porter Freight Funding is perfect for owner-operators and mid-sized trucking companies. It offers a wide array of flat rate pricing, contract lengths and payment terms. 

Best for: Flexibility 

Services: 

• Same-day freight factoring 
• Freight brokerage 
• Dispatch 
• Fuel cards
• Insurance
• Compliance 
• Billing, invoicing and collections 
• Broker credit checks  

Special features: 

• Mobile app
• Dedicated account executive
• Vetted dispatchers
• Fuel cards
• Fuel discounts

Benefits: 

• Same-day funding
• No monthly minimums 
• Yearly, bi-annual or month-to-month contracts
• Dedicated client care
• Fuel advance of 45% of the load
• Dispatchers for the following:
  • Reefer
  • Hotshot 
  • Flatbed 
  • Van 
  • Power-only
• No minimum factoring requirement for companies with no more than two trucks

Disadvantages: 

• Not specifically built for fleets

RTS Financial

Since its establishment in 1995, RTS has been committed to supporting trucking companies in improving their cash flow, reducing fuel expenses, and enhancing overall operational efficiency. While certain factoring companies opt for flexible arrangements, RTS Financial prioritizes long-term contracts lasting at least one year. By emphasizing the development of strong partnerships with trucking companies, RTS Financial ensures the provision of dedicated and personalized services.

Best for: Fast turnaround times

Services: 

• 24-hour funding
• Billing and collection services
• Customer credit services
• Online reporting
• Select invoice factoring
• Fuel cards
• Freight broker factoring

Special features: Only non-recourse factoring

Benefits: 

• No start-up fee
• No minimum fee
• No hidden fees

Disadvantages: 

• Issues with communication
• Described as confusing for users

Apex Capital Corp

Unlike the typical 90% advance rate, Apex Capital issues advances up to 99% of the invoice value for loads. Their steep advances get nearly the full owed dollar amount to box truck drivers quickly so they can cover gas, repairs, payroll and all overhead costs.

Best for: Advance rates

Special features:  Apex 24/7 Roadside Rescue 

Benefits: 

• Great customer service
• No monthly minimum volume fees
• No long-term contracts
• Fuel cards with discounts

Disadvantages: Must process invoices through Apex Capital

Triumph Business Capital

Triumph Business Capital offers the outstanding MyTriumph online portal so you can view and manage your invoices digitally. You can run and view reports and check on the status of your invoices. Triumph Business Capital makes the list because of its low minimum revenue requirement and high factoring capacity. It offers flexible solutions for many fleets with funding up to 100% of the invoice value.  

Best for: Digital invoice management

Features: 

• Portal for easy invoice management
• Online credit checks
• Up to 100% advance on invoices
• Fuel card discounts
• Flexible qualification requirements 

Benefits: 

• Specialized in invoice factoring
• Recourse and non-recourse factoring available
• Option to factor some or all of your invoices

Disadvantages:

• Application requires hard credit pull
• Factor fees are not transparent
• Lower credit score can mean less favorable rates 

Considerations when selecting a trucking invoice factoring company

Here are some things to keep in mind when choosing a freight factoring company. 

Overall factoring cost

Invoice factoring companies and freight-factoring specialists earn money by charging a small percentage of each invoice you factor with them. Even though you are getting paid upfront, the money you’ll receive is slightly less than the value of your initial invoice. Additional fees for services like money transfers or collection costs may also exist.

Funding speed 

The main point of invoice factoring is to receive your payments more quickly to cover other business costs. Invoice factoring is only a good option if the funds are available when you need them. 

Look into the guarantees made by the factoring companies you are considering working with before you trade your invoices. For example, most factoring companies will have a 24-hour turnaround time, but this time frame can change based on the amount that you want to receive. 

Credit score requirements 

Using a factoring company for trucking does not require in-depth credit score checks since no debt is involved. Factoring companies may still check credit scores, but they focus more on your customers and their credit scores than yours. Since the factoring company will be waiting on payment from your customers rather than you, their credit score is more relevant.  

When you sell your invoices, you will receive cash that you can use to ensure you won’t miss any of your payments. Additionally, compared to taking financing from banks, using a factoring company for truckers does not affect your credit score, whereas bank financing can harm your score. 

Industry expertise 

The factoring company you choose to work with should be about your field. Likewise, you should stay up to speed with current measures and trends regarding payment amounts, speeds, factoring and other financial considerations that can affect your invoice factoring. It is important that you fully understand factoring and what the standard rates are before you choose a specific factoring company. 

BBB rating 

The Better Business Bureau (BBB) is the standard for rating companies’ interactions with the public and with customers as well as the functionality of the business itself. 

It has a rating system from A+ to F to help you understand whether your truck factoring company is worth interacting with. The BBB is also an excellent resource for checking customer reviews for satisfaction and customer service.  

Customer service 

The customer service record of the factoring companies you are considering working with is essential. By looking through customer reviews, you can determine if the company is slower than they advertise when sending funds or if they have hidden fees. Customer reviews are a valuable resource for discovering these problems and identifying the best truck factoring companies.

Evaluate your factoring company for trucking options

With one of the best factoring companies for trucking, you can get the upfront cash you need to keep your business running smoothly. These trusted companies purchase your invoices and chase payments from your customers so you can focus on growing your trucking company.

FAQ