Top Factoring Companies for Trucking: Compare Funding and Pricing Options

If you're a trucking company looking to boost your cash flow, consider factoring companies that can help. Factor Funding offers advance rates of up to 90% on outstanding invoices.

For trucking companies with high volumes of freight, Factor Funding's advance rates can provide a significant cash influx. This can be especially helpful during slow periods or when dealing with large shipments.

However, not all factoring companies are created equal, and some may charge higher fees or have stricter requirements than others. For example, Factor Funding charges a 0.5% to 1.5% fee on the outstanding balance.

To compare funding and pricing options, consider the advance rates, fees, and requirements of each factoring company. This will help you choose the best option for your trucking business.

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Top factoring companies for trucking are essential for maintaining a steady cash flow. Carriers know that prompt payments from brokers and shippers aren’t always guaranteed, but invoice factoring allows you to convert unpaid invoices into immediate cash.

Here are the top 10 freight factoring companies to consider: OTR SolutionsApex Capital CorpRTSPhoenix Capital GroupPorter Freight FundingRiviera FinanceTBS FactoringWEXeCapitalOrange Commercial Credit

To find the right factoring company, compare fees and advance rates, as most offer advances of 80% to 95% of the invoice value. Be aware of hidden costs like setup fees, monthly minimums, or termination fees.

Some factoring companies offer non-recourse options, which means the factoring company takes the hit if the customer doesn't pay. However, non-recourse factoring usually costs more.

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Porter Freight Funding offers same-day funding, both recourse and non-recourse factoring, and no long-term contracts. They also provide compliance assistance and a fuel card program.

Riviera Finance specializes in flat-rate pricing and customizable collection services, making it easier for carriers to know exactly what they're paying. They also offer a client portal for easy access to account information.

WEX offers a flat-rate factoring program with no monthly minimums or invoice funding limits, giving carriers flexibility in choosing which invoices to factor. Their program also includes a dedicated account representative, mobile application, and fleet reporting and analytics.

Porter Funding is a great option for trucking companies looking for fast access to cash. They offer same-day funding, which is a game-changer for carriers who need to stay on the road.

One of the key benefits of working with Porter Funding is their dispatching network, which connects you with pre-approved brokers and shippers. This can help keep your trucks moving and your business thriving.

Porter Funding also provides compliance assistance, including help with regulatory requirements and insurance quotes. This can be a huge help for newer carriers who are navigating the complexities of the industry.

However, some clients have reported difficulty in reaching account managers and a need for more active involvement in the factoring process. Additionally, carriers with three or more trucks may face fees if they don't meet a specific monthly factoring volume.

Here are some reasons why Porter Funding is a top choice for trucking companies:

With Porter Funding, you can expect to receive a dedicated account executive, a mobile app, and fuel advances and discounts. They also offer a flexible contract option, with month-to-month, six-month, or annual contracts available.

Factoring is a process where a factoring company buys your invoices at a discount and advances payment once the order or load is delivered to the customers. This creates a source of fast cash for your trucking company.

There are two types of factoring: recourse and non-recourse factoring. Recourse factoring means the trucking company pays the factoring company if the customer doesn't pay the invoice. Non-recourse factoring, on the other hand, means the factoring company bears the risk of nonpayment, which is why it typically costs more.

Recourse factoring is generally less expensive than non-recourse factoring. But it also means the trucking company takes on more risk, as they may end up paying the invoice if the customer doesn't pay.

Here are the key differences between recourse and non-recourse factoring:

Apex Capital Corp has a 4.5-star rating on Trustpilot, based on over 300 reviews.

Their clients praise Apex for its easy-to-use online platform, which allows for quick and efficient factoring applications.

Factoring rates at Apex range from 8% to 14% of the invoice amount.

Apex offers a variety of funding options, including spot factoring and recurring factoring.

Their team is available to answer client questions and provide support 24/7.

Instant funding is a game-changer for truckers, providing quick access to cash to keep operations moving and busy. This is especially important for those with cash flow gaps.

Most transportation factoring companies offer advance rates ranging from 70% to 90% of the invoice value. However, some companies, like the one mentioned, offer much higher advance rates, up to a full advance with no reserve held back.

Fees are a crucial consideration when choosing a factoring company. These can range from 1% to 5%, but hidden costs like setup fees, monthly minimums, or termination fees can sneak up on you. Some companies, like the one mentioned, are transparent about their fees and rates up front.

Here are some key factors to consider when evaluating a factoring company's pricing:

It's rare to get an upfront price from factoring companies because they typically base their discount rates on a variety of factors.

Upfront pricing is a crucial aspect to consider when choosing a factoring company for your trucking business. Some factoring companies, like the one mentioned in Example 3, are totally transparent about their fees and rates up front.

Their transportation factoring rates are among the most competitive in the industry and vary depending on how many trucks you are running, volume to factor, type of loads, and any risk associated with your customer base. They also clearly state any nominal transaction charges associated with each funding option, such as ACH, wire transfer, and electronic submission of invoices.

Most transportation factoring companies have advance rates that run from 70% to 90%, but some companies, like the one in Example 3, offer much higher advance rates, from 90% up to a full advance with no reserve held back.

Here's a breakdown of the key factors to consider when evaluating upfront pricing:

By carefully evaluating these factors, you can make an informed decision about which factoring company is right for your business and get the best upfront pricing.

OCC works professionally with your customers to collect on invoices, never confusing itself with a collection agency.

We place calls on your behalf to check on payment status, making note of check dates and passing along any messages to you.

OCC essentially becomes your Credit and Collections Department for factored invoices, freeing up your time and staff's time to focus on more productive tasks.

We share check dates with you, providing valuable information to help you manage your customer relationships and cash flow.

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When choosing a top factoring company for trucking, it's essential to consider the solutions they offer. OTR Solutions, for instance, provides true non-recourse factoring, ensuring carriers retain their advance even if their customers don't pay.

Their commitment to transparency is also noteworthy, with no hidden fees or long-term contracts. This approach sets them apart from the competition and gives carriers peace of mind.

OTR Solutions' user-friendly mobile app and online portal make account management a breeze, allowing carriers to access their funds quickly and easily.

One of the standout features of OTR Solutions is their BOLT Instant Funding feature, which provides funds within 24 hours. This can be a game-changer for carriers who need cash flow fast.

Apex, on the other hand, offers a range of valuable solutions for their factoring clients, including FREE unlimited broker credit checks and a FREE online Account Management Portal (AMP) with 24/7 access.

These tools can help carriers manage their finances more effectively and make informed decisions about their business.

Here are just a few of the solutions offered by top factoring companies:

When considering a factoring company for your trucking business, there are several key factors to keep in mind.

Advance rates are a crucial consideration, as most factoring companies offer advances of 80% to 95% of the invoice value. This means that you can get a significant portion of your money back quickly, but you should also be aware that some companies may offer lower advance rates.

Fees can add up quickly, ranging from 1% to 5% of the invoice value, and hidden costs like setup fees, monthly minimums, or termination fees can sneak up on you. Be sure to read the fine print and understand all the costs involved.

Customer service is also essential, as you want a factoring company that is easy to work with and responsive to your needs. A company that is difficult to reach or uncooperative can cause more stress than it's worth.

Some factoring companies require long-term contracts, while others let you factor invoices as needed, so consider your cash flow situation and risk tolerance when making your decision.

TBS Factoring is a trusted partner for trucking companies with over 50 years of experience. They offer a wide range of factoring services, including both recourse and non-recourse options, as well as additional services to support your business.

Their flat-rate factoring gives carriers a clear and predictable pricing structure. This can be a big relief for trucking companies that want to know exactly how much they'll be paying.

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TBS Factoring also offers two different fuel card options with loyalty programs for tires, parts, and legal services. This can help trucking companies save money on fuel and other expenses.

However, customer feedback is mixed, with some customers praising their knowledgeable account managers and support, while others have reported issues with inconsistent communication and a lack of transparency in contracts.

Here are some reasons why TBS Factoring is a top choice:

You can also get a 50% advance on a customer order with TBS Factoring, as long as you commit to a three-month contract and are approved. This can be a big help for trucking companies that need cash flow quickly.

As a trucking company owner, you need to consider the specifics of factoring companies to ensure you're getting the best deal. Advance rates typically range from 80% to 95% of the invoice value.

When evaluating a factoring company, don't overlook the fees. They can range from 1% to 5%, but hidden costs like setup fees, monthly minimums, or termination fees can sneak up on you.

You'll also want to think about the type of factoring you need. Recourse factoring means you're responsible if the customer doesn't pay, while non-recourse means the factoring company takes the hit, but it usually costs more.

Some factoring companies require long-term contracts, while others let you factor invoices as needed. Be sure to review the contract terms carefully before signing up.

Most good factoring companies provide funds within 24 hours, which can be a huge help if you're struggling to make payroll or pay other bills.

Recourse vs. Non-Recourse Factoring: What's the Difference?

Recourse factoring means you're responsible if the customer doesn't pay, while non-recourse factoring means the factoring company takes the hit.

Most factoring companies offer both options, including Apex, which offers both non-recourse and recourse factoring.

Non-recourse factoring usually costs more, but it can give you peace of mind.

Here's a simple breakdown of the two options:

Ultimately, the best choice between recourse and non-recourse factoring depends on your risk tolerance and business needs.

Choosing a factoring company is a crucial decision for trucking businesses. Apex Capital offers both recourse and non-recourse factoring options.

Most factoring companies offer advances of 80% to 95% of the invoice value, but Apex Capital provides 24/7 access to your funds and online account management. This means you can manage your finances and make informed decisions about your hauls at any time.

Apex Capital also helps you check credit on brokers, shippers, and freight forwarders, which can help you avoid working with unreliable partners. This can be a lifesaver in the trucking industry, where cash flow is king.

Before signing up with a factoring company, it's essential to consider the fees and advance rates. Most factoring companies charge fees ranging from 1% to 5%, but Apex Capital is transparent about its fees and doesn't have any hidden costs.

Here are some key factors to consider when choosing a factoring company:

Ultimately, the best factoring company for you will depend on your specific needs and circumstances. By considering factors like fees, advance rates, and customer service, you can make an informed decision and choose a company that works for you.