Best factoring companies for trucking

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 will 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.

Quicklook: Best factoring companies for trucking

• Best for trucking specialists: TAFS featured ad
• Best for owner-operators: eCapital  featured ad
• Best for OTR trucking: TAB  featured ad
• Best for flexibility: Porter Freight Funding featured ad
• Best for fast turnaround time: RTS Financial
• Best for small to midsize carriers: OTR Capital
• Best for customer service: Apex Capital Corp

7 best factoring companies for trucking 

Here’s a closer look at what these invoice-factoring companies can offer trucking companies like yours.  

TAFS

TAFS is a specialist when it comes to factoring in the trucking industry. This company works to provide you with fast turnaround times for the funding you need to operate. Additionally,  TAFS can assist you with your business via its higher-paying freight connections, partnership discounts and competitive rate financing options. 

Best for: Trucking specialists

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

Maximum funding: N/A

Discount rate: None

Expected APR: Upwards of 2.49%

Advance rate: Up to 100%

Recourse factoring: 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 

eCapital

Specializing in getting small and medium companies the funding they need to reach their goals, eCapital is an excellent choice for freight and invoice factoring. Its dedicated transportation factoring has helped thousands of trucking companies get paid fast and improve cash flow. eCapital also offers total banking solutions such as Visa commercial cards and InstaPay transfers. 

Best for: Owner-operators

Services: 

• Recourse and non-recourse factoring
• Load board with automatic credit checks
• Visa commercial debit cards
• Integrated load board and TMS

Maximum funding: Not available

Discount rate: Not available

Expected APR: Not available

Advance rate: Not available

Recourse factoring: Yes

Non-recourse factoring: Yes

Funding time: Instant

Minimum credit score: No

BBB rating: A-

Special features: 

• eCapital Visa commercial cards
• Extra lines of credit
• Load board with integrated credit checks  

Benefits: 

• Complimentary back office support
• Fuel discounts 
• 24/7 support
• Instant pay options

Disadvantages: 

• No transparent APR or funding limits
• Customer complaints regarding rate increases 

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

Maximum funding: Not available

Discount rate: N/A

Expected APR: Not available

Advance rate: Up to 97%

Recourse factoring: Yes

Non-recourse factoring: No

Funding time: 24 hours

Minimum credit score: No 

BBB rating: A-

Special features: 

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

Benefits: 

• No start-up fees  
• Fuel advances and cards 
• Mobile app

Disadvantages: 

• Long 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  

Maximum funding: 

• Low: $10,000
• High: $25 million

Discount rate: N/A

Expected APR: 1.5%

Advance rate: 90%

Recourse factoring: 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
• 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 1995, RTS has been dedicated to helping trucking companies get paid faster, lower fuel costs and run their businesses more efficiently. While some factoring companies prefer to keep things open-ended, RTS Financial focuses on contracts lasting at least one year. This emphasis on building relationships with trucking companies allows it to provide dedicated and customized service. 

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 million

Discount rate: N/A

Expected APR: N/A

Advance rate: Up to 97%

Recourse factoring: 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

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

OTR’s additional services and partnerships have formed a true “One-Stop-Shop” in the trucking industry.

Best for: Small to Midsize 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 million

Discount rate: 1-4%

Expected APR: N/A

Advance rate: Up to 99%

Recourse factoring: 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
• Transparent online reporting
• Fuel discounts

Disadvantages:

• High credit risk customers may not be approved

Apex Capital Corp

Apex Capital Corp is top of the line for 24/7 freight factoring and customer service. This full-service factoring company helps trucking companies maintain a steady cash flow with night, weekend and bank holiday factoring. Additionally, Apex supports its customers with discounts on fuel, 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: Between 80% and 90%

Recourse factoring: 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 when a business sells outstanding invoices to a third-party company at a discount. Through invoice factoring, trucking companies can remove a strain on cash flow and stay current on their expenses even when clients fall behind on their payments. 

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 money upfront for their pending invoices. 

Instead of waiting for the customer to pay their invoice, the business sells it to a factoring company at a discount. The 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. 

Considerations when selecting an invoice-factoring company

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

Overall 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 timeframe can change based on the amount that you want to receive. 

Credit score requirements 

Using a factoring company 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 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 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. 

Invoice factoring for trucking companies

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 

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