Best Factoring Companies for Trucking

When running a business, having immediate cash to pay out your employees is essential. However, keeping a truck or even fleet of trucks on the road can be an expensive task that you need to fund. Having a factoring company can help assist you in this process and alleviate some of this stress. Choosing a factoring company that is right for you may seem overwhelming, however, here are our top picks on factoring that can help you stay up to date on your bills and payroll.

Quicklook: Best Factoring Companies for Trucking

• Best For Trucking Specialists: TAFS Featured (Ad)
• Best For Transparency: REV Capital Featured (Ad)
• Best For Fast Turnaround: RTS Financial
• Best For Small to Midsized Carriers: OTR Capital
• Best For Customer Service: Apex Capital Corp
• Best For Small Businesses: Thunder Funding

6 Best Factoring Companies for Trucking 

Here is a better look into what these factoring companies are and what they have to offer. 

TAFS Featured (Ad)

TAFS is a specialist when it comes to factoring in the trucking industry. Not only will they work to provide fast turnarounds, but TAFS also assists with your business through their higher paying freight connections, partnership discounts, and competitive rate financing options. 

Best For: Trucking Specialists

Services: 

• Recourse and non-recourse factoring
• Open 365 days a year
• Strong partnerships that can result in higher paying freight
• Industry partnership discounts
• Fast turnaround (including a 1-hour advance)
• Fuel Discounts

Maximum Funding: Information not available

Discount Rate: None

Expected APR: Upwards of 2.49%

Advance Rate: Up to 100%

Recourse: Yes

Non-Recourse Factoring: Yes

Funding Time: Same day funding options

Minimum Credit Score: No minimum qualifications

BBB Rating: A+

Special Features: 

• 1 day turnaround options
• Nationwide Fuel Discounts
• Low Rates for 1 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
• Customers have to deal with customer service agents

REV Capital Featured (Ad)

REV Capital prides itself on being a fully transparent company with their consumers. One of the biggest benefits the company provides is a 24/7 online portal allowing anyone to track and monitor their collection notes, checks, and purchase reports in real-time.

Best For: Transparency

Services: 

• Billing, underwriting, collections, and cash posting
• 24/7 online portal tracking and monitoring collection notes, checks, purchase reports, and statements
• Customer credit services
• Online reporting
• Freight broker factoring

Maximum Funding: $5,000,000

Discount Rate: N/A

Expected APR: N/A

Advance Rate: Up to 90%

Recourse: Yes

Non-Recourse Factoring: Yes

Funding Time: Within 24 hours

Minimum Credit Score: N/A

BBB Rating: A+

Special Features: 

• 24/7 online portal

Benefits: 

• Reduce payment periods
• No pre-billing
• No hidden fees

Disadvantages: 

• Lack of information on their pricing
• Relatively new company

RTS Financial

While some options prefer to keep it open-ended, RTS Financial focuses on contracts that last at least one year. But in that year, you will reap the benefits of all that they have to offer. 

Best For: Fast Turnaround

Services: 

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

Maximum Funding: $30,000,000

Discount Rate: N/A

Expected APR: N/A

Advance Rate: Up to 97%

Recourse: No

Non-Recourse Factoring: Yes

Funding Time: Within 24 hours

Minimum Credit Score: N/A

BBB Rating: B

Special Features: 

• Only non-recourse factoring

Benefits: 

• No startup fee
• No minimum fee
• No hidden fees

Disadvantages: 

• Customers have reported issues with the communication
• System has been described as confusing for users

OTR Capital

Correction Notice:This article was originally published with errors relating to OTR Capital. Those errors have been corrected in the details below.

OTR Capital is a trucking focused factoring company whose programs are tailored towards the small-midsized carrier.

Best For: Small to Midsized Carriers

Services:

• True Non-Recourse factoring
• Industry leading load board and technology partnerships 
• Easy invoicing via client portal and mobile app
• Same day funding
• Dedicated account management teams
• Free credit checks
• Brokerage factoring programs

Maximum Funding: $25,000,000

Discount Rate: Between 1 – 4%

Expected APR: N/A

Advance Rate: Up to 99%

Recourse: Yes

Non-Recourse Factoring: Yes

Funding Time: Same Day Funding

Minimum Credit Score: N/A

BBB Rating: A+

Special Features: 

• Vast TMS integration capabilities
• Proprietary Technology

Benefits:

• No hidden fees
• No monthly requirements
• Broker checks
• Fuel Discounts
• Transparent online reporting

Disadvantages:

• High credit risk customers may not be approved

Apex Capital Corp

Apex Capital Corp is top of the line in customer service and finds ways to offer discounts to their customers that are up to date with mandates and even offer discounts on hotels and prescription cards. 

Best For: Customer Service

Services: 

• 24/7 factoring
• Same day and next day funding
• Professional collections on factored invoices

Maximum Funding: N/A

Discount Rate: N/A

Expected APR: N/A

Advance Rate: 80% – 90%

Recourse: Yes

Non-Recourse Factoring: Yes

Funding Time: Within 24 hours

Minimum Credit Score: N/A

BBB Rating: A+

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: 

•  All invoices are required to go through Apex Capital

Thunder Funding

Thunder Funding has no ties to other industries and is fully focused on the trucking industry. This allows them to be more in tune with the needs of their customers.

Best For: Small Businesses

Services: 

• Select invoice factoring
• Same day funding
• Free Credit checks

Maximum Funding: N/a

Discount Rate: N/A

Expected APR: 2% – 4%

Advance Rate: Up to 95%

Recourse: Yes

Non-Recourse Factoring: Yes

Funding Time: Same Day

Minimum Credit Score: N/A 

BBB Rating: N/A

Special Features: 

• Low rates

Benefits: 

• No long term contracts
• 90 day agreements
• Free credit checks
• 24 hour turn around

Disadvantages:

•  Limited in services compared to larger companies

What Is Invoice Factoring?

Invoice factoring is when you take the outstanding invoices for your company and sell them to a third party. This can improve your cash flow and keep you current on any bills or payroll that are relying on those invoices being paid. 

How Does Invoice Factoring Work?

When you perform a service for a customer you send them an invoice and that invoice is not always paid immediately. There could be a payment plan or a later date set for that invoice. 

If you are in need of cash flow immediately, you take the invoice and sell it to a factoring company that will pay you the money for the invoice, barring a fee. Your customer then pays that invoice to the factoring company. 

Considerations When Selecting An Invoice Factoring Company

When you are choosing a factoring company, here are some tips and things to consider, both for yourself and the companies in question, before making your final decision.

Overall Cost

The way that factoring companies make money is by charging you a small percentage of each invoice you factor with them. So they will take your invoice and pay you, but you will be getting a small percentage less than the initial invoice. Then keep in mind that you can be charged additional fees for services like money transfers and collection costs. All of this should be factored together when you are choosing the best factoring company for you. 

Funding Speed 

The point of a factoring company is to receive your payments in a timely manner. If you are stuck waiting on the funds from the factoring company it defeats the purpose of using them in the first place. Be sure to see what guarantees can be made by any factoring companies before trading your invoices with them. Although, generally you should expect most to offer a less than 24-hour turnaround speed. 

Credit Score Requirements 

Using a factoring company does not require any in-depth credit score checks since there is no debt being taken on. Factoring companies will check credit scores but they are more focused on customers and credit scores since the payment comes from them. You are trading the invoice for cash directly with these companies and it can actually help you to improve your credit. 

When you sell your invoices, you will receive cash that can be used to avoid missed payments. When compared to taking financing from banks, using a factoring company takes no toll on your credit while bank financing can have a negative impact. 

Industry Expertise 

Just as it is important that the factoring company has people who are knowledgeable in regards to your field, so should you. You want to know that you are up to speed with current measures and trends in regards to payment amounts, speeds, factoring, and much more. Be sure that you understand factoring and what the common rates are before choosing the one for you. 

BBB Rating and Customer Service 

The Better Business Bureau, also known as BBB is the standard when it comes to rating the interactions of companies with the public and with customers as well as the functionality of the business itself. They have a rating system that runs from A+ to F that will help you to understand whether your factoring company is worth interacting with. That being said you should also check out customer reviews for satisfaction and customer service.  

Customer Service 

Knowing the customer service record of any factoring company is important because there could be some issues that will sway your decision one way or the other. Through customer reviews, you can find out if the company is slower than advertised at sending funds, or perhaps they have hidden fees that you will not be initially exposed to. This and much more can be found out through customer reviews and customer service evaluations. 

Finding a Factoring Company for Your Business’ Future

Even though factoring companies may cost some of your company’s income, this would be going to a good cause. Factoring companies can help you get higher liquidity, pay clients on time, and provide you security against debt losses. Choosing a factoring company that is right for your business is crucial and it is important to know what you are looking for in one of these companies. This new liquidity can ensure your business is running normally as usual and provides you the security you need.

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