Best factoring companies for trucking

When you need cash now but all of your invoices are net 30, factoring companies can take the weight of your cash flow problems out of your hands. Invoice factoring allows you to get paid for services your company has performed without having to wait for customers to pay at their leisure. 

Additionally, factoring companies can handle outstanding bills from delinquent customers and alleviate the stress from your finance department. But how do you find a reliable factoring company? 

Let’s review some of the best factoring companies below so that you can find all of the information you should know about the options available to you.

Quicklook: Best Factoring Companies for Trucking

• Best For Trucking Specialists: TAFS Featured Ad
• Best For Transparency: REV Capital Featured Ad
• Best For Flexibility: Porter Freight Funding Featured Ad
• Best For Fast Turnaround Time: RTS Financial
• Best For Established Businesses: OTR Capital
• Best For Customer Service: Apex Capital Corp

6 Best Factoring Companies for Trucking 

Here is a better look at what these factoring companies have to offer. 

TAFS Featured Ad

TAFS is a specialist when it comes to factoring in the trucking industry. Not only will this company work to provide you with fast turnaround times, but TAFS can also assist you with your business via 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: N/A

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: 

• 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 

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

Porter Freight Funding

Formed in 2011, Porter Freight Funding is the factoring arm of Porter Capital. Through the acquisition of 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 thanks to its 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  

Maximum Funding: 

• Low: $10,000
• High: $25,000,000

Discount Rate: N/A

Expected APR: 1.5%

Advance Rate: 90%

Recourse: Yes

Non-Recourse Factoring: Yes

Funding Time: Within 24 hours

Minimum Credit Score: N/A 

BBB Rating: A+

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 available 
• Dedicated client care
• Fuel advance of 45% of 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

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

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

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

Disadvantages: 

• Issues with communication
• Described as confusing for users

OTR Capital

If you have an established business that regularly needs factoring, OTR Capital is a great choice. You can see immediate results from your hauls and keep your operations current without any interruptions. 

Best For: Established Businesses

Services:

• Select invoice factoring
• 24-hour funding
• Billing and collection services
• Customer credit services

Maximum Funding: $25,000,000

Discount Rate: 10%

Expected APR: 2%

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: 

• Quickbooks integration

Benefits:

• No hidden fees
• No monthly requirements
• Broker checks
• Online reporting
• Fuel advances

Disadvantages:

• Expensive for small businesses
• Restrictions on fuel advances

Apex Capital Corp

Apex Capital Corp is top of the line when it comes to customer service. The company finds ways to offer discounts to their customers by staying updated with mandates and offering discounts on hotels as well as 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: Between 80% and 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: 

• Must process invoices through Apex Capital

What Is Invoice Factoring?

Invoice factoring is the sale of outstanding invoices to third parties. By helping to remove strains on cash flow, invoice factoring can keep you current on upcoming or unforeseen expenses even when your clients fall behind on their payments to you. 

How Does Invoice Factoring Work?

Unless a job is considered cash on delivery (COD) or net zero, invoices are rarely paid on the same day the services are rendered. It’s normal to not even be paid in the same week as well.

Depending on how your company does business, you may have to wait upwards of thirty days to receive your payments. Though this may not always cause a problem for you or your business, if you have employees, they most likely get paid on a bi-weekly basis, so there will be a gap between your income and your expenses. 

If you are in need of cash flow immediately, you can sell your invoice to a factoring company. Invoice factoring companies will pay you a nominal fee for your invoices upfront. After this happens, a customer will pay the factoring company. 

Considerations When Selecting An Invoice Factoring Company

When you are trying to choose a factoring company, there are some tips to learn from and some details to consider before you make your final decision. Here’s what you should keep in mind. 

Overall Cost

The way factoring companies make money is by charging you a small percentage of each invoice you factor with them. So, even though you are getting paid upfront, the money you’ll receive is slightly less than the value of your initial invoice. 

As a result of this, you should remember that you might be charged additional fees for services, like money transfers or collection costs. All of this information should be considered as you work on choosing the best factoring company for you. 

Funding Speed 

The point of a factoring company is for you to receive your payments in a timely manner. If you end up waiting for the funds from your clients and the factoring company, then it defeats the purpose of working with a factoring company in the first place. 

So, make sure you look into the guarantees made by the factoring companies you are thinking of working with before you trade any of your invoices with them. Most factoring companies will have a 24-hour turnaround time, but this timeframe can change based on the amount that you want to receive. 

Credit Score Requirements 

Using a factoring company does not require any in-depth credit score checks since there is no debt involved. Factoring companies will check credit scores, but they will focus more on your customers and their credit scores than yours. 

This is because the payment that the factoring company will be waiting on will come from your customers, not you. Additionally, you will be directly trading the invoice with these companies in exchange for cash, which can actually help you improve your own credit. 

When you sell your invoices, you will receive cash that can be used to ensure you won’t miss any of your payments. Compared to taking financing from banks, using a factoring company does not affect your credit score whereas bank financing can have a negative impact on your score. 

Industry Expertise 

It is important that the factoring company you choose to work with has people who are knowledgeable about your field. Likewise, you will need to know that you are up to speed with current measures and trends in regard to payment amounts, speeds, factoring and more. Make sure you understand factoring and what the common rates are before you choose a specific factoring company. 

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 the factoring companies you are thinking of working with is important. This is because there could be some issues that will sway your decision one way or the other. 

By looking through customer reviews, you can figure out if the company is slower than they advertise when it comes to sending funds. Perhaps the company you’re considering has hidden fees that you won’t be made aware of initially. These possibilities and many more can be figured out via customer reviews and evaluations. 

Get Paid Right Away

Whether or not you choose to use a factoring company generally comes down to how soon you need the money that is owed to you. Even if you can wait the 30 days that a net 30 contract may require, does your company have the room to withstand unforeseen emergencies? If you use a factoring company correctly, you can save time by getting the money faster. 

FAQ

Sign up for a FreightWaves e-newsletter to stay informed of all news and trends impacting supply chain careers and operations.