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What Are the Top Invoice Factoring Companies?

Unpaid invoices can be a major obstacle to understanding your company’s cash flow. Invoice factoring companies can alleviate this burden by buying these invoices from a business and collecting the amount owed from the original company’s client.




We’ve reviewed today’s top invoice factoring companies, and highlighted their key features below.

Quicklook: Top Invoice Factoring Companies

  • Best Overall: TAFS Featured Ad
  • Best For Invoice Management: Triumph
  • Best For Fast and Easy Setup: Bluevine
  • Best For High Volume Trucking Companies: RTS Financial
  • Best For Month to Month Contracts: TCI Capital

5 Top Invoice Factoring Companies

We’ve reviewed today’s top invoice factoring companies and present the top five:

TAFS Featured Ad

TAFS

We’ve ranked TAFS as “best overall,” due to their strong understanding of the trucking industry and desire to help truckers lower their overall operating costs. TAFS has a great list of partnerships that will help all of their customers and partners.

Best For: Best Overall

Services:

  • Recourse and non-recourse factoring
  • Open 365 days a year
  • Strong partnerships that can result in higher paying freight and industry discounts
  • Fast turnaround (including a 1-hour advance option)
  • Fuel Discounts

Maximum Funding: None

Discount Rate: No discount

Expected APR: as low as 2.49% for 1 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:

  • 1 day turnaround options
  • Nationwide Fuel Discounts
  • Low Rates for 1 truck companies

Benefits:

  • Fast funding
  • Recourse and Non-Recourse Factoring
  • Positive industry reputation
  • Industry Experience

Disadvantages:

  • Loan amounts and rates not provided upfront
  • Must deal with customer service agents

Triumph Business Capital

Triumph Business Capital

The MyTriumph web portal makes Triumph uniquely suited for invoice management. This online service allows customers to monitor and control their invoice factoring needs and check the status of payments.

Best For: Invoice Management

Services:

  • Recourse factoring
  • Non-recourse factoring
  • MyTriumph online customer portal

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 7 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 monitoring/control over invoices
  • Fuel discount program

Disadvantages:

  • MyTriumph portal does not integrate with accounting software
  • Slower funding time compared to competitors
  • Origination fee

BlueVine

BlueVine

BlueVine ranks among today’s top invoice factoring companies for their 10-minute application process and 24-hour funding speed. This makes them a great choice for businesses that are looking for a fast, easy setup, so it could be ideal for the small business community.

Best For: Fast and Easy Setup

Services:

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

Maximum Funding: $5 million

Discount Rate: 0.25% to 1.35% weekly

Expected APR: 13% to 70%

Advance Rate: Up to 90%

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, rapid application process
  •  Rapid funding
  •  Large funding amounts are available

Disadvantages:

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

RTS Financial

RTS Financial

While each of these invoice factoring companies is adaptable to the trucking and logistics industry, RTS Financial uniquely caters to trucking companies and can offer valuable help when dealing with high-volume invoices.

Best For: High Volume Trucking Companies

Services:

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

Maximum Funding: Not listed

Discount Rate: None listed

Expected APR: 2.7% to 3.5%

Advance Rate: Up to 97%

Minimum Annual Revenue: $150,000

Funding Time: 24 hours

Minimum Credit Score: No minimum score

BBB Rating: A

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

TCI Business Capital

TCI Business Capital

TCI Business Capital isn’t the only company to offer short-term contracts, but the flexibility they offer makes the company ideal for businesses looking to scale and grow. Business owners should consider TCI Business Capital if their needs tend to fluctuate seasonally.

Best For: Month-to-Month Contracts

Services:

  • Invoice factoring
  • Month-to-month contracts
  • Scalable solutions

Maximum Funding: $20 million

Discount Rate: 1% to 4%

Expected APR: 12% to 55%

Advance Rate: Up to 90%

Minimum Annual Revenue: $600,000

Funding Time: Up to 3 days 

Minimum Credit Score: None

BBB Rating: A+

Special Features:

  • Re-evaluates discount rates each month to see if they can be reduced
  • Strong customer service

Benefits:

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

Disadvantages:

  • Quotes available through an agent
  • Not as rapid as competitors

What Is Invoice Factoring?

Invoice factoring is similar to the services offered by a collection agency. If your business has unpaid invoices, you can sell these invoices to an invoice factoring the company, known as a “factor.” This will eliminate these outstanding invoices and ensure that you get cash in hand for the operation of your business.

How Does Invoice Factoring Work?

When you sell invoices to an invoice factoring company, you usually do so for less than the cost of the initial invoice. This will partly serve as the fee for the factoring company. The advantage, of course, is that it’s better to accept a lower quantity for your invoice than not receive any payment at all.

Once the factor has purchased these invoices, they will seek payment from the original client. Invoice factoring companies make their money by buying the invoice from a company at a discount, though they often charge additional fees, as well.

Considerations When Selecting an Invoice Factoring Company

If you’re thinking about using the services of an invoice factoring company, here are some things to consider:

Overall Cost

Keep in mind you’ll have to factor in two different costs:

  • The money lost when you sell the invoice at a lower rate
  • The fees charged by an invoice factoring company

Usually, though, businesses prefer collecting some money from their outstanding invoices than none at all, and it’s better to have money readily available to ensure a steady revenue stream.

Funding Speed

Some invoice factoring companies pay the invoice in one lump sum. In other circumstances, the invoice factor will pay the original company on a predetermined schedule. You’ll have to decide which method works best for your revenue stream.

Credit Score Requirements

For some invoice factoring companies, rates and eligibility depend on credit score. Businesses with lower credit scores may be charged more for invoice factoring services.

Time In Business

Determining the trustworthiness of a company often comes down to how long they’ve been in business. Do they have a track record of success? What is their industry reputation? These factors can help you narrow your choices to a reliable company.

BBB Rating and Customer Service

A company’s Better Business Bureau (BBB) rating can indicate the quality of service the company provides. This can help you evaluate the kind of customer service you can expect from these providers.

Stay Efficient, Stay Profitable.

We trust this article has equipped you to understand the benefits and services of today’s top invoice factoring companies. Want to take your trucking business to the next level? The KeepTruckin Fuel Hub can help you manage your fleets and reduce your operating costs. To learn more, visit our website today.

FAQ

How Much Does a Factoring Company Charge?

Invoice factoring companies usually charge between 1% to 5% of the total amount of the invoice. However, these rates can vary by industry, volume, and the company itself.

Is Invoice Factoring a Good Idea?

Invoice factoring can be a great idea, since it ensures that your business has access to cash now, rather than waiting for your client to pay their outstanding invoices.

Which Businesses May Need Factoring Services?

Any business that relies on invoices may need invoice factoring services, though trucking companies and other logistics providers may particularly benefit from a company assisting with a backlog of unpaid invoices.

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 1-Hour Advance option.

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 1-Hour Advance option.