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.

Quicklook: Top invoice factoring companies

• Best for customer service: TAFS Inc. Featured ad
• Best for fast payments: eCapital Featured ad
• Best for full business banking: TAB Featured ad
• Best for all fleet sizes: Porter Freight Funding Featured ad
• Best for invoice management: Triumph Business Capital
• Best for fast and easy setup: FundThrough
• Best for trucking services: RTS Financial
• Best for month-to-month contracts: TCI Business Capital

8 top invoice factoring companies

Check out these eight 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. Offering the best customer service 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: Customer service

Services:

• Recourse and nonrecourse 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 nonrecourse factoring
• Positive industry reputation
• Industry experience

Disadvantages:

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

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: Around 3.5%

Expected APR: Not available

Advance rate: Typically 60-90% 

Minimum annual revenue: None

Funding time: In as little as 24 hours

Minimum credit score: No credit limit

BBB rating: A-

Special features: 

• Access to financial professionals as a resource
• Funding as soon as 24 hours
• Minimal documentation required
• No credit requirement

Benefits: 

•  In-house business banking
•  Equipment leasing options
•  Funding as soon as 24 hours

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 mid-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: 

• Nonrecourse 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 resource factoring and 100% for nonrecourse 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 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
• Nonrecourse 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 loans 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:

• Nonrecourse 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 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 the invoice factoring company seeks 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. Invoice-factoring 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 companies.

Overall cost

You’ll want to consider two different costs:

• Money lost when selling an invoice at a lower rate
• Fees charged by the invoice factoring company

However, most businesses find that it’s better to collect some of the value from their outstanding invoices than none at all. It’s also better to have a consistent revenue stream with cash available. 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 some invoice factoring companies are more interested in your customer’s credibility and on-time payment history than your business’ credit score.

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

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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