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Best non-recourse factoring companies (what it really means) 

Non-recourse factoring means that a collections company — called a factoring company — will assume responsibility for any unpaid debt or past-due invoices for your company. If you choose to use non-recourse factoring companies, you will sell unpaid invoices to that company and receive a percentage of the unpaid value in cash. The factoring company follows up to collect the invoices and reimburses you if the remaining balance is received. 

These services usually come with a premium fee. But for many companies, it’s worth the cost. Non-recourse factoring saves valuable time for other aspects of your business, including building new partnerships for regular loads and improving fleet efficiency. 

Quicklook: Best non-recourse factoring companies

7 best non-recourse factoring companies

The best non-recourse factoring companies ensure steady cash flow for your business while eliminating the need to follow up with customers when they delay or fail to pay. Allow these factoring companies to handle your invoicing for you.



Best for: Overall factoring

Specializing in owner-operators’ accounts receivable financing, TAFS has the experience and knowledge to provide truckers top-notch factoring and financing options. It is open 365 days a year, until midnight on weekdays. TAFS’ strategic industry partnerships contribute to clients’ overall success while reducing operating costs.  

Minimum revenue threshold: No minimum qualifications

Maximum funding: None provided

Funding release speed: Same-day or up to 24 hours

Advance rate: Up to 100%

Discount rate: Check with TAFS

APR: Varies, but as low as 2.49%

Special features:

  • One-day turnaround options
  • Nationwide fuel discounts
  • Low rates for owner-operators and one-truck companies


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


  • Amounts and rates are not provided up front
  • Customers have to deal with customer service agents

OTR Solutions

Best for: Customer service

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.

Minimum revenue threshold: No minimum qualifications

Maximum funding: None provided

Funding release speed: Invoices received by noon local time are received the same day. Instant funding available using BOLT Instant Funding option. 

Advance rate: Check with OTR Solutions

Discount rate: Check with OTR Solutions

APR: Check with OTR Solutions

Special features:

  • Dedicated account management team
  • Instant funding available
  • Client portal and mobile app
  • Free 24/7 broker checks
  • Also offers fuel card and premium banking services designed specifically for truckers


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

Disadvantages: Amounts and rates are not available online



Best for: Small businesses with limited annual revenue

eCapital offers alternative financing solutions to serve the trucking industry. It makes the list because it has a lower minimum revenue threshold than competitors. But it also takes a lot longer to release funds, which might not be favorable for your company’s needs. eCapital does offer competitive rates to help small companies retain more of their revenue so they can grow and thrive. 

Minimum revenue threshold: $360,000

Maximum funding: $10 million

Funding release speed: First funding will take no more than 48 hours but in some cases can take as long as seven days

Advance rate: Up to 90%

Discount rate:  0.9-2.5% per 30 days

APR: 16% to 55%

Special features:

  • Competitive rates
  • Lower minimum income threshold compared to competitors
  • Good option if you’ve struggled to find a company to work with 


  • Borrower requirements are much easier to achieve
  • Willing to advance larger amounts than many competitors
  • Fast funding is possible, but you’ll need to work with the lender


  • Fees vary based on how timely your customers are in paying their invoices
  • eCapital does not offer a variety of funding options, only invoice factoring
TAB Bank

TAB Bank

Best for: All fleet sizes

TAB Bank has been in business since 1997. Its freight factoring is designed to help you drive business growth by exchanging unpaid invoices for immediate access to working capital. TAB’s simple, reliable and fast non-recourse factoring gives your company access to funds when you need them. How much you receive upfront will depend on the debtor’s creditworthiness. In any case, TAB does the collections work so you can focus on expansion. 

Minimum revenue threshold: None

Maximum funding: $25 million

Funding release speed: Same-day

Advance rate: Up to 99%

Discount rate: Between 1-4%

APR: Varies

Special features

  • Get access to cash within 24 hours
  • QuickBooks integration
  • Selective invoicing
  • Single invoice
  • No minimums


  • Waived monthly fee for business checking accounts 
  • Payment of available reserves on request 
  • Freight broker factoring
  • Fuel advances
  • Fuel cards
  • Mobile app


  • Lack of transparency in APR and discount rate

Triumph Business Capital

Triumph Business Capital

Best for: Digital Invoice Management

Triumph Business Capital offers an 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.  

Minimum revenue threshold: $100,000 per month

Maximum funding: Up to 100% of the invoice value

Funding release speed: Same-day funding 

Advance rate: Up to 90%

Discount rate: 1% to 4% monthly

APR: 2.5% to 4.99%

Special features

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


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


  • $300 origination fee plus factoring fee
  • Application requires hard credit pull
  • Factor fees are not transparent
  • Lower credit score can mean less favorable rates 

RTS Financial

RTS Financial

Best for: Invoice factoring with complete freight industry services 

Founded in 1986, RTS Financial is another organization that specializes in the trucking industry. That means that RTS Financial offers special perks and benefits that fit your business and unique needs. One such perk is managing your financial loans in one place because RTS offers equipment leasing programs alongside invoice factoring and fuel cards. 

Minimum revenue threshold: $150,000 per month

Maximum funding: No limits stated

Funding release speed: 24 hours or less

Advance rate: Up to 97% of the invoice value

Discount rate: Inquire with RTS Financial for details

APR: 2.7% to 3.5%

Special features

  • Mobile app available to help you manage your invoices
  • Fuel discounts
  • No fees or penalties for smaller volumes
  • Excellent customer support


  • No processing fees
  • Speedy invoice advances  
  • Submit multiple invoices at once 
  • High-quality image scanning through the mobile app
  • Run reports within the app or online


  • You must complete a full application to view rates
  • Customers report difficulty canceling contracts


BlueVine logo

Best For: Transparent fees

BlueVine is a flexible, transparent invoice factoring company that is newer to the industry.  Established in 2014, it has an A+ Better Business Bureau rating and excellent reviews. With BlueVine, you can choose from recourse or non-recourse agreements to meet your needs. The application process is clear and simple, so you won’t have to spend your precious time working to get approval. The minimum revenue threshold is also friendly toward newer and smaller businesses.

Minimum revenue threshold: $10,000 per month for at least three months

Maximum funding: $5 million

Funding release speed: As little as 24 hours

Advance rate: 85% to 90% 

Discount rate: Up to 3%

APR: Starts at 4.8%

Special features:

  • Lower minimum revenue threshold
  • Flexible terms based on your needs
  • Simple application process


  • Established and financially secure lender 
  • Large funding amounts are available
  • Funding options include term loans and credit lines
  • A dedicated representative will answer questions 
  • Great customer service 


  • Only works with B2B businesses
  • Best rates are reserved for those with a credit score of 600 or higher

What does non-recourse factoring really mean?

The term non-recourse factoring is used when an invoice factoring company assumes the majority of the risk associated with nonpayment for overdue invoices. Although this may sound like the safest option, there’s always small print to read, and it usually involves additional costs or liabilities. 

The likelihood of not having to repay your invoices in a situation like this is slim. That is why it’s important to understand and review every factoring contract to determine liability and what portion is yours to hold for each invoice you factor. Generally, non-recourse factoring companies will charge higher fees, especially if the debtor has a low credit score. See the breakdown of recourse vs. non-recourse factoring here. 

Under what terms will I be recoursed?

Understanding the terms of your contract will be paramount. It’s important to realize that all non-recourse factoring companies recourse as part of their contractual obligations, and at some point in time, you will be recoursed. 

Drivers, especially new ones just starting out, should take the time to understand the factoring companies’ terms. Schedule a time with them to discuss their non-recourse factoring options and what obligations you will have. No matter the type of account you have with the company, a good factor will make a diligent effort to collect your invoices. After a set amount of time — set in your contract terms — a factor may recourse the invoice back to you, but they’ll typically provide you with options to help cover the costs.

The list above are all trusted non-recourse factoring companies that have their drivers’ and companies’ best interests in mind. Learn more about whether factoring is cost-effective for your company

What to consider with non-recourse factoring terms

Whether a factoring agreement is recourse or non-recourse is just one consideration you have when entering into these agreements. You should also consider the minimum threshold and maximum funding to meet your business needs. And be sure to check funding release speed when evaluating factoring contracts.

Minimum revenue threshold

The minimum revenue threshold helps the invoice factoring company manage its risk and reward. You might be viewed as a riskier partner for a factoring contract without a certain amount of income. Before starting an application, review the minimum revenue threshold to see if you qualify. Otherwise, you’ll waste time on applications for factoring companies that won’t accept you. 

Many of the non-recourse factoring companies on the list above have no minimum revenue threshold and allow you to factor individual invoices. 

Maximum funding

The maximum funding will tell you how many invoices you can factor with the company. This information will help you understand whether a factoring company has the working capital needed to manage your cash flow effectively. Some companies will only factor a small amount until they receive payment from a few of your customers to offset their risks. Other companies have high maximum funding thresholds and aim to serve large fleets. 

Funding release speed

Once you enter into an agreement with an invoice factoring company, you want to know that it’ll release the advance funds quickly so you’ll have operating funds. Some non-recourse factoring companies get you that money within hours, while others can take a few days. The best non-recourse factoring companies will typically release funds within 24 hours. 

Advance rate

The advance rate is a percentage of the total invoice value that the factoring company will provide before receiving the customer’s full payment. This is the influx of cash that companies need when they consider invoice factoring. 

A higher advance rate can help you determine whether the partnership will provide the benefits you need. On the other hand, smaller companies may accept lower advance rates to meet the liquidity requirements of the best non-recourse factoring companies.

Discount rate

The discount rate is the total amount you’ll pay the invoice factoring company for its services, expressed as a percentage of the total invoice value. The discount rate is the amount that the invoice factoring company will retain after the customer pays the full value of your invoice. Standard discount rates range from 1% to 5% of the total price. 

The lower the discount rate, the less you’ll pay for the invoice factoring service. Generally, the larger the factoring volume, the lower the discount rate. 


As you evaluate the best funding arrangement for your business, APR can tell you what you would’ve paid for those same funds had you gotten a traditional loan. This rate calculates the funds based on the discount rate and advance rate using an annualized percentage. 

The APR for factoring tends to be much higher than a traditional business loan, but you also won’t have other outside fees, such as underwriting. Additionally, it can be easier to establish a factoring relationship than a loan because you’re essentially using the invoice as collateral with the lender. 

Choosing non-recourse factoring companies

Selecting the right non-recourse factoring company comes down to company size and revenue, invoice factoring volume, and fees. Most non-recourse factoring companies offer variable discount rates and APRs depending on your company and the debtors. To find the best rates, consider applying to a few factoring companies and comparing offers. Several on the list above don’t require a contract, allowing you further flexibility to choose the best non-recourse factoring company for your fleet’s needs. 

Whichever company you choose, its role in invoicing and collections will free up resources to deliver exceptional service and build your business. 


What is factoring an invoice?

Factoring an invoice is when a business sells its open invoices to a factoring company for a discount. The business gets the funds rapidly, and the factoring company makes a percentage after it has collected the money.

What are typical factoring fees?

Typical factoring fees run somewhere between 1% and 5%. This fee depends on the freight factoring company you are working with, the invoice amounts, sales volume and creditworthiness.

Why would a company sell receivables to another company?

Selling receivables can provide a steady cash flow and help you avoid taking out business loans for unexpected expenses.

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TAFS is More than Freight Factoring

As one of the industry leaders, TAFS assists trucking companies to increase cash flow with some of the lowest factoring rates in the industry and a 1-hour advance option.