12 Best Factoring Companies for Trucking
These factoring companies for trucking can fund quickly, offer fuel discounts and provide some hints at pricing.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Freight factoring companies give trucking companies cash in exchange for outstanding invoices. They can be helpful to trucking companies that need fast working capital or that don’t have the staff to manage collections. But be cautious about unclear costs and contracts.
Here are our picks for freight factoring companies plus information to help you decide if this kind of small-business loan is right for your business.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Best trucking factoring companies for upfront pricing
Few factoring companies for trucking disclose their prices, but these companies offer at least a peek.
AltLINE
Time to funding: Same-day funding available.
Good to know: AltLINE can offer up to 100% advance rates. The company assigns you an account manager to support your business and answer questions as needed.
Pricing details:
Rates starting at 0.90%.
No monthly minimums.
Short-term contract required.
TruckSmarter
Time to funding: Often within 24 hours.
Good to know: TruckSmarter offers several industry-specific products in an effort to be your “one-stop shop” for trucking. The company has AI-enhanced software designed to match you with loads according to your preferences, a checking account with a decent APY and a fee-free load board. It also has a mobile app that can be used to get fuel discounts with no transaction fees.
Pricing details:
Rates starting at 2.5%
No monthly minimums.
No additional fees.
Contract required, but termination is allowed at any time.
Transportation Management Group
Time to funding: Same-day funding.
Good to know: Transportation Management Group has 100% advance rates available. You also have access to a fuel card and equipment financing. The company does not have a mobile app.
Pricing details:
Rates starting at 0.65%.
No monthly minimums.
30-day contract required.
» MORE: The best trucking business loans
Best trucking factoring companies for funding speed
These factoring companies for trucking offer some of the fastest funding times.
Apex Capital
Time to funding: Minutes via its proprietary Blynk payment service; otherwise, same-day and next-day funding.
Good to know: This company factors freight invoices on nights, weekends and holidays. Its proprietary Blynk payment service lets customers get paid via debit, Zelle or bank transfer.
Pricing details:
Custom rates. No pricing details on website.
No minimum volume required.
No long-term contract required.
No termination fees.
TAFS
Time to funding: One hour during the week, plus advances on weekends and holidays.
Good to know: The company’s mobile app allows customers to submit invoices from a smartphone. TAFS is a recourse factoring company, meaning you take the financial loss if your customer doesn’t pay.
Pricing details:
Must reach out to company for information on costs and fees.
RTS Financial
Time to funding: Within 24 hours.
Good to know: The company’s mobile app lets you easily submit invoices from your phone, track your account and invoice history, access fuel discounts and more.
Pricing details:
Must reach out to company for information on costs.
No ACH fees.
No invoice-uploading fees.
Discounts for U.S. veterans.
TBS Factoring
Time to funding: Same-day processing.
Good to know: TBS offers both non-recourse and recourse factoring. It also has an app to help you submit paperwork and verify your deliveries. The company also offers fuel discount cards and bookkeeping services.
Pricing details:
No sign-up fees.
No volume requirements.
Must reach out to company for information on costs.
eCapital
Time to funding: As fast as one hour.
Good to know: ECapital can advance up to 90% of invoices. This company also offers recourse and non-recourse factoring. ECapital provides other products, too, including inventory financing and asset-based lending.
Pricing details:
Must reach out to company for information on costs.
Thunder Funding
Time to funding: Typically within 24 hours.
Good to know: The company only offers non-recourse factoring and assumes all the risk in the event that your customers do not pay their invoices as a result of bankruptcy or insolvency. A 90-day contract is required, but you can cancel after that. Thunder Funding also offers a fuel card, trucking insurance programs and fuel advances.
Pricing details:
No sign-up fees.
No volume requirements.
Must reach out to company for information on costs.
OTR Solutions
Time to funding: Same-day and possibly within minutes, using OTR’s new automation software.
Good to know: OTR Solutions offers non-recourse factoring. A mobile app is available to help you upload invoices and receive payment. Instant funding is offered with no bank wire fees. There’s a fuel advance program and an OTR fuel card.
Pricing details:
No monthly minimums.
Must reach out to company for information on costs.
Porter Freight Funding
Time to funding: Within 24 hours and sometimes sooner.
Good to know: At Porter Freight Funding you can choose between recourse and non-recourse factoring. The company also offers a mobile app and a dedicated account executive as well as a fuel card program, fuel advances and discounts. Contract options are month-to-month, six months or annual.
Pricing details:
No monthly minimums with one to two trucks.
Flat-rate pricing (as opposed to tiered).
Single Point Capital
Time to funding: Within 24 hours.
Good to know: The company has a program that helps you defer up to 50% of your insurance down payment which can be repaid from your factored invoices. A mobile app is offered and you’ll have access to fuel advances and lines of credit.
Pricing details:
Must reach out to company for information on costs.
What is freight factoring?
Freight factoring is when a trucking company sells its invoices to a factoring company at a discount. The factoring company then advances payment once the load is delivered to the customers. The arrangement creates a source of fast cash for your trucking company. In return, the factoring company charges a fee for its services.
There are two types of freight factoring:
Recourse factoring: If the customer doesn’t pay the invoice, the trucking company has to pay the factoring company.
Non-recourse factors. If the customer doesn’t pay, the trucking company doesn’t have to pay the invoice. Instead the factoring company takes the loss. Because of this added risk, non-recourse factoring typically costs more.
Freight factoring is also known as transportation factoring or trucking factoring.
Do I need a factoring company for trucking?
A factoring company can provide quick cash for trucking businesses. This can come in handy if you’re having trouble making payroll, paying other bills or don’t want to take out a loan. Factoring can also be helpful if your business doesn’t have the time or staff to deal with collecting money from customers.
Fast cash.
Factor only what you need when you need it.
Credit score doesn’t matter.
May cost more than bank financing.
Lender may come after trucking company if customers don’t pay.
How much do factoring companies charge?
Factoring companies buy accounts receivable at a discount, so you’ll receive less than the full value of each invoice. The size of that discount is an important factor when choosing a factoring company.
It’s rare to get an upfront price from factoring companies because they typically base their discount rates on a variety of factors:
Most factoring companies don’t share exact prices upfront because their rates depend on several factors, such as your company’s size, customers, invoice volume and whether you want recourse or non-recourse factoring.
It’s important to review the contract terms of any factoring agreement and make sure you understand the costs before you sign up.
Alternatives to freight factoring
Freight factoring is just one way to borrow money quickly. These other options might be viable alternatives for your trucking business.
Business credit cards
Using a credit card lets you keep 100% of what your customers pay you. Business credit cards can offer rewards, such as travel miles or cash back. A business gas credit card may make sense for a trucking company. Be sure you can pay your credit card balance off in full each month because the interest charges may be higher than what you’d pay in factoring fees.
» MORE: Fuel cards for small business
Business line of credit
A business line of credit can be a more affordable way to cover short-term costs compared with factoring. It usually has a higher spending limit than a business credit card. However, it is typically harder to qualify for a business line of credit than a business credit card or freight factoring, you will likely need a better credit score and stronger financial performance.