Top invoice factoring companies

Bills are coming up, trucks need fuel and your employees need payment. However, you’re holding invoices that still aren’t paid. Without that payment, how can you cover your expenses? What do you do?

Invoice factoring companies can improve your cash flow by paying you for your unpaid invoices. They’ll buy your invoices at a discount rate, pay an advance and assume the responsibility of tracking down payment. This way, you have reliable cash flow to ensure you can cover your expenses month-to-month. Factoring may be just what you need to improve your business’s finances. And when you’re finished reading this article, learn more in our ‘Invoice factoring’ series:

• What is invoice factoring?
• How are factoring fees calculated?
• Why load factoring is smart for businesses without cash flow issues
• Top invoice factoring companies

Quicklook: Top invoice factoring companies

• Best for one-hour advances: TAFS Inc.
• Best for customer service: OTR Solutions
• Best for non-recourse factoring: Nationwide Commercial Credit, Inc.
• Best for fast payments: eCapital -find factoring
• Best for full business banking: TAB -find factoring
• Best for all fleet sizes: Porter Freight Funding -find factoring
• Best for invoice management: Triumph Business Capital -find factoring
• Best for fast and easy setup: FundThrough -find factoring
• Best for trucking services: RTS Financial -find factoring
• Best for month-to-month contracts: TCI Business Capital -find factoring

10 best invoice factoring companies

Check out these options if you’re looking for the best invoice factoring companies to help your business. 

TAFS

TAFS is a factoring company focused on developing relationships with trucking companies to help support their long-term financial growth. With over 15 years in the business, TAFS understands the unique challenges in the transportation industry, including the importance of 24-hour service. Having one of the best reputations of any invoice-factoring company, TAFS also provides a wide range of other trucking business solutions. Among them are truck leasing, dispatching and business loans.  

Best for: One-hour advances

Services:

• Recourse and non-recourse factoring
• Open 365 days a year
• Strong partnerships that can result in higher-paying freight and discounts
• Fast turnaround, including a one-hour advance option
• Fuel discounts

Maximum funding: Not available

Discount rate: Not available

Expected annual percentage rate (APR): As low as 2.49% for single-truck companies

Advance rate: Up to 100%

Minimum annual revenue: No minimum qualifications

Funding time: Same day or up to 24 hours 

Minimum credit score: No minimum qualifications

BBB rating: A

Special features:

• One-day turnaround options
• Nationwide fuel discounts
• Low rates for owner-operators
• Roadside assistance program

Benefits:

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

Disadvantages:

• No upfront loan amounts and rates 
• Must deal with customer service agents

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 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

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:

• 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

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

Minimum revenue thresholds:

• Carriers: No monthly minimum, making it accessible even to single-truck companies
• Freight brokers: $50,000 per month

Maximum funding: Capable of providing up to $10 million in funding

Funding release speed: Known for releasing funds within hours of verification

Advance rate: Typically ranges between 97% and 98.5%

Discount rate:

• 2.5% to 3% for small fleets
• 1.5% to 2% for larger fleets

APR: Nationwide Commercial Credit operates with no interest charges

Special features:

• Offers formal freight broker credit decision-making 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.

eCapital

eCapital is a factoring company with premium freight factoring services.  It advertises instant fund transfers, or within 24 hours, along with other services. Through eCapital, owner-operators can also have access to a line of credit and a Visa card for advances on fuel and additional costs. It offers a fuel discount program, load board and TMS system.

Best for: Fast payments

Services: 

• Instant transfers
• Line of credit and Visa card
• Fuel discounts
• Load board with built-in credit checks

Maximum funding: Not available  

Discount rate: Not available 

Expected APR: Not available

Advance rate: Up to 95%

Minimum annual revenue: None

Funding time: Almost immediately after approval of invoice 

Minimum credit score: None. Approval is based on the creditworthiness of customers.

BBB rating: A-

Special features:

• Load board
• TMS system
• Fuel discounts
• Line of credit

Benefits: 

• Quick funding
• Instant transfers, even after hours
• Other premium services 
• Money management system

Disadvantages:

•  No upfront pricing or rates
•  Must contact customer service to receive a quote

TAB

TAB Bank is a full-service financial institution, with invoice factoring services designed for the transportation industry. With TAB, you can get quick funding for invoices with no minimum credit requirements. You can also take advantage of TAB’s other offerings, such as business checking, savings and financing.

Best for: Full-service business banking

Services: 

• Invoice and freight factoring
• Business and asset-based loans
• Equipment financing
• Business checking and savings

Maximum funding: Not available

Discount rate: Between 1-4%

Expected APR: Not available

Advance rate: Up to 99%

Minimum annual revenue: None

Funding time: Same-day funding

Minimum credit score: No credit limit

BBB rating: A-

Special features: 

• Access to financial professionals as a resource
• Same-day funding
• Minimal documentation required
• No credit requirement

Benefits: 

•  In-house business banking
•  Equipment leasing options
•  Same day funding

Disadvantages: 

• No upfront rates
• Not accredited by BBB
• Longer funding time than some competitors
  • No other trucking services

Porter Freight Funding

Offering freight factoring solutions for medium-sized trucking companies and large fleets, Porter Freight Funding is an excellent choice for any transportation business. Along with capital freight factoring, Porter offers insurance options, fuel cards, equipment financing and dispatching. Plus, Porter customers are assigned a designated account executive who can help find specific solutions for your business. 

Best for: All fleet sizes

Services: 

• Non-recourse factoring
• Recourse factoring
• Freight brokerage
• Dispatch services
• Fuel cards
• Business insurance

Maximum funding: $15 million

Discount rate: Not available

Expected APR: 1.5%

Advance rate: 95% to 100% for recourse factoring and 100% for non-recourse factoring

Minimum annual revenue: No minimum for up to two trucks

Funding time: 24 hours

Minimum credit score: None

BBB rating: A+

Special features: 

• Same-day funding
• No customer credit checks
• Flat pricing
• Short-term contract options available

Benefits: 

• Dedicated client representative
• No monthly minimums
• Competitive advance rates
• Fuel card and brokerage options

Disadvantage: 

• Not BBB accredited 

Triumph Business Capital

Triumph Business Capital makes it easy for trucking companies to keep up with invoices with premium factoring services. The MyTriumph web portal is specially designed for invoice management. It allows you to monitor and control your invoice factoring business needs, and check the status of payments. Triumph also has excellent back-office support that can help chase clients for unpaid invoices so you don’t have to. 

Best for: Invoice management

Services:

• Recourse factoring
• Non-recourse factoring
• MyTriumph online customer portal
• Insurance offerings
• Fuel cards
• Equipment financing

Maximum funding: Up to $20 million

Discount rate: 1% to 4% per month

Expected APR: 12% to 72%

Advance rate: Up to 90%

Minimum annual revenue: $100,000

Funding time: Up to seven days 

Minimum credit score: 500

BBB rating: A

Special features:

• The MyTriumph online portal
• Ability to run free credit checks through MyTriumph
• High advance rate (90%)

Benefits:

• Maximum control over invoices
• Fuel discount program

Disadvantages:

• Not integrated with accounting software
• Slower funding time compared to competitors
• Origination fee

FundThrough

Trusted invoice-factoring company BlueVine has partnered with FundThrough to offer more individualized attention to its freight-factoring customers. It also offers two funding options, Express and Velocity, which offer more customized options for trucking companies. With QuickBooks integration and a quick and easy application process, FundThrough is a great choice for small businesses and owner operators needing cash flow. 

Best for: Fast, easy setup

Services:

• Invoice factoring
• Credit lines for small business
• Term lending for small business

Maximum funding: $5 million

Discount rate: 2.75% every 30 days invoice is outstanding

Expected APR: 13% to 70%

Advance rate: Up to 100%

Minimum annual revenue: $120,000

Funding time: 24 hours

Minimum credit score: 530

BBB rating: A+

Special features:

• Other small-business solutions
• Simple application process
• System integrates with accounting software such as QuickBooks

Benefits:

•  Simple application process
•  Rapid funding
•  Large funding amounts

Disadvantages:

•  Requires personal guarantee
•  Higher payment amounts for short repayment terms

RTS Financial

RTS Financial has specialized in services and software for trucking companies since 1986. Although this freight factoring company excels at dealing with high-volume invoices, it offers more than that. With a fuel card program and ProTransport trucking software, transportation companies can meet all their business needs in one mobile-friendly RTS Pro App.

Best for: Trucking services

Services:

• Non-recourse invoice factoring
• Equipment leasing options
• Trucking-related software

Maximum funding: Not available

Discount rate: Not available

Expected APR: 2.7% to 3.5%

Advance rate: Up to 97%

Minimum annual revenue: $150,000

Funding time: Within 24 hours

Minimum credit score: No minimum score

BBB rating: D 

Special features:

• Easy-to-use mobile app
• Quality customer support
• Integrations for other software support

Benefits:

• No minimum-volume fees
• No processing fees
• Fast funding

Disadvantages:

• Must apply by phone
• Rates are hidden until after the application is submitted
• Not accredited by BBB

TCI Business Capital

With over 20 years of experience offering invoice factoring solutions for trucking companies, TCI Business Capital is prepared to help grow your business. With flexible, short-term contract options, TCI is great for trucking companies with seasonal fluctuations and inconsistent income. It also offers scalable solutions and has a straightforward application process. 

Best for: Month-to-month contracts

Services:

• Invoice factoring
• Month-to-month contracts
• Scalable lender solutions
• Fuel card

Maximum funding: $20 million

Discount Rate: 1% to 4%

Expected APR: 12% to 55%

Advance rate: 90%

Minimum annual revenue: $600,000

Funding time: Up to three days 

Minimum credit score: None

BBB rating: A+

Special features:

• Reevaluates discount rates each month to see whether they can be reduced
• Strong customer service

Benefits:

• No long-term contracts
• Easy onboarding
• Variable rates based on volume and repayment rate

Disadvantages:

• Quotes only available through an agent
• Slower funding compared to competitors

What is invoice factoring?

Invoice factoring, also called freight factoring, works similarly to a collections agency for trucking companies. If your trucking business has unpaid invoices, a freight factoring company will buy them from you at a discount rate. Your trucking company gets a cash advance while invoice factoring firms seek payment. This process allows you to get the cash flow you need to keep your business operating. 

How does invoice factoring work?

When you sell freight invoices to invoice factoring companies, you typically do so for less than the original cost of the invoice. This difference is the fee the factoring company charges to assume the responsibility of getting the invoice paid. 

While you don’t get paid the total amount of the invoice, it’s better than not receiving payment at all or not having cash flow to continue business operations. Once the factor purchases the invoices, they seek repayment from your original client. Factoring finance companies earn money by buying invoices at a discount and through fees. And your business doesn’t lose out on payment from unpaid invoices.

Considerations for choosing an invoice factoring company

There are a few things to think about when searching for invoice factoring firms.

Overall finance cost

What do factoring companies charge? There are typically two main types of fees:

• A factoring fee, usually ranging from 1% to 5% of the invoice value per month. This fee varies based on factors like invoice volume, creditworthiness of your customers, and industry risk.
• A discount rate, which is the percentage of the invoice face value that the factoring company keeps. This can range from 0.5% to 5% of the total invoice amount.

The exact charges can vary widely depending on the factoring company, your business specifics, and the terms of the agreement. Some companies may also charge additional fees for setup, credit checks, or other services. It’s important to carefully review and compare offers from multiple factoring companies to understand the full cost structure.

To minimize the cost to your business, look for a company with low factoring rates and transparent upfront fees.

Funding speed

If you need an invoice paid to cover a bill, you want to ensure you will get payment from the freight-factoring company in time. Some factoring companies pay for invoices in one lump sum while others pay on a predetermined schedule. Check to see which method the freight-factoring company uses and whether the funding speed works for your revenue stream. 

Credit score requirements

Some invoice factoring companies have credit score requirements that determine rates and eligibility. Businesses with lower credit scores may find it difficult to find an invoice-factoring company or get charged more for their services. However, invoice factoring can improve your credit score over time. And many invoice factor companies are more interested in your customer’s credibility and on-time payment history than your business’s credit score.

Factoring company’s time in business

The trustworthiness of a financial company often directly correlates with how long it’s been in business. Invoice factoring companies with long track records of success and a positive industry reputation are more reliable options. 

BBB rating and customer service

The Better Business Bureau helps protect consumers from undependable businesses. A company’s BBB rating will indicate the level of service it provides and can help you choose an invoice factoring company with positive customer service. It’s a good idea to check if a business is BBB accredited and if they have a high score.

Cash flow you can count on from the best factoring companies

Stop waiting on customer payments to be able to cover your bills. By partnering with a reputable invoice factoring company, you can generate a reliable stream of income that isn’t dependent on customer payment. The time you spend tracking down payment can be used for finding new loads and growing the business. With more time and money, you can focus on improving business operations to take your trucking company to the next level.

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