If you're a trucker, you understand how crucial it is to have enough cash coming in regularly. The problem is that sometimes the companies you work with take time to pay you. This can force you to use your credit card a lot or take on debt to stay afloat until you finally get the money you earned. This is where a factoring company for trucking comes in handy. It's tough to find good factoring companies and even harder to find ones that only require you to pay them back if your client pays.
What is a factoring company?
Factoring helps truckers get paid faster for their work. Instead of dealing with invoice payments, the factoring company takes care of it. In return, the truck driver pays the factoring company a small part of their payment. Besides that, factoring companies often have extra fees, which means the driver doesn't get the full amount they earned for the job. But truckers are okay with this trade-off because it helps them keep their trucks on the road.
Top 18 freight factoring companies for truckers
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Compass funding solutions
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OTR Solutions
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eCapital Freight Factoring Inc.
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Apex Capital Corp
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England Carrier Services
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RTS
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FirstLine Funding Group
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Phoenix Capital Group
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Love’s Financial
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Porter Freight Funding
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Saint Johns Capital
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Riviera Finance
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TAFS
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TBS Factoring
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Triumph Financial Services LLC
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WEX
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Truckstop
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Orange Commercial Credit
Finding the best factoring company for truckers can be tricky because there are many options. But don't worry! We've picked our top 18 factoring companies so you can make the best decision.
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Compass Funding Solutions
Based in Clarendon Hills, Illinois, Compass Funding Solutions is a factoring company for trucking that is committed to delivering excellent customer service and great factoring solutions for trucking companies across the United States. As part of the Compass Holding family of companies, which includes Compass Insurance Group, Compass Truck Sales, and Compass Logistics, they offer a comprehensive approach to address various needs. Established in 1997 under Compass Holding, Compass Funding Solutions ensures a simple account setup in minutes, drawing upon more than 20 years of experience. They provide bundled savings covering payment, insurance, factoring, and more.
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OTR Solutions
OTR Solutions (formerly OTR Capital) stands out with its instant funding options and genuine non-recourse factoring. Boasting the highest client satisfaction rate in the industry, OTR Solutions focuses on being a trusted partner for trucking companies of all sizes. Their commitment to transparency includes competitive rates, elite customer service, and a swift, seamless factoring process without any hidden fees or restrictive contracts. OTR Solutions' BOLT Instant Funding ensures funds within 24 hours, and their easy-to-use mobile app and online client portal provide on-the-go management of invoices and payments. Integrated into the DAT platform, OTR Solutions offers factoring services, broker checks, and automated invoicing within a single platform. With a dedicated approach to non-recourse factoring, they fully absorb the risks associated with your invoices, ensuring comprehensive coverage. OTR Solutions goes beyond funding by offering a fuel card with zero in-network transaction fees, accepted at over 8,000 locations, contributing to improved cash flow for your business.
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eCapital Freight Factoring Inc.
Ecapital Freight Factoring, based in Aventura, Florida, operates as the transportation branch of eCapital, extending financial funding services to diverse industries such as staffing, healthcare, consumer goods, and transportation. With a particular focus on supporting small- to medium-sized businesses, eCapital emphasizes its swift funding model, ensuring quick approvals and processing, round-the-clock access to funds, and the freedom to utilize the funds according to business needs. Established in 2006, eCapital Freight Factoring has served over 22,000 businesses. It continues to grow, offering key features like instant bank account transfers, a line of credit, a Visa Commercial Card, robust back-office support, and a 90-day risk-free trial.
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Apex Capital Corp
Since 1995, Apex Capital Corp has garnered positive customer feedback for its commitment to customer service and support as a great factoring company for trucking. Serving carriers of all sizes, Apex Capital Corp provides clients with dedicated account executives, 24/7 access to an online Account Management Portal, and the flexibility to choose between recourse and non-recourse factoring. The company goes the extra mile by offering complimentary credit checks, fuel card discounts, a mobile app for seamless factoring from any location, and a transparent fee structure that includes no termination fees, no charges based on monthly minimum volumes, and a flat 2% rate on already billed invoices. However, it's important to note that some clients have reported restrictions on doing business with other accounts receivable factoring companies while under contract with Apex.
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England Carrier Services
England Carrier Services (ECS), a branch of England Logistics, specializes in providing tailored industry services for trucking companies, including factoring and offering fuel and tire discounts. Established in 2004, ECS operates under the ownership of C.R. England and is headquartered in Salt Lake City, Utah. ECS stands out with its customizable plans, competitive rates, round-the-clock access to online reports, availability of ECS' collections/credit teams, and personalized customer service facilitated by a dedicated Factoring Agent.
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RTS
Since 1986, RTS has been a dependable provider of quick recourse and non-recourse factoring services, earning praise for low rates and swift fund transfers within 24 hours. Clients appreciate the comprehensive support, including equipment leasing options, a fuel card program, an agent/referral program, and trucking-related software. However, users mention concerns about pricing transparency, as you should receive up to 97% of your invoice upfront. However, the fees need to be clarified even after contacting customer service. Furthermore, applying for RTS' factoring services needs more online convenience, requiring potential clients to engage with a sales representative for business discussions and factoring options.
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FirstLine Funding Group
A part of First Bank & Trust, FirstLine Funding Group focuses on catering to the transportation industry through services like factoring invoices, equipment financing, and fuel advances. Expanding beyond transportation, the group offers factoring services to various industries. Founded in 2009 and headquartered in Madison, South Dakota, they provide features like flat rate pricing, a maximum 100 percent advance rate, assistance from a personal account manager, and a mobile app for convenient invoice scanning.
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Love’s Financial
Under Love’s Family of Companies, Love’s Financial provides factoring services and additional perks like fuel discounts, a free Transportation Management System (TMS), and express credit options. With significant experience in freight factoring, Love’s Financial is a trusted name in the transportation industry. Established in 2014 and based in Oklahoma City, Oklahoma, the company offers customized solutions, access to up to 99 percent of cash from invoices, back-office support, bundled packages, and credit programs.
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Phoenix Capital Group
Phoenix Capital Group sets itself apart by providing customized solutions to carriers, irrespective of their size or stage of operation. Their recourse and non-recourse factoring programs cater to both new and established fleets, offering a flat-rate structure that accommodates various needs and risk preferences. Clients can also leverage additional benefits like a load board, equipment financing, and a fuel card program with discounts at 1,900 commercial stations. While some clients have positive experiences with dedicated account representatives, others have faced challenges such as delayed payments, communication difficulties with representatives, a restricted pool of approved brokers, and inconsistent support with back-end billing.
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Porter Freight Funding
Porter Freight Funding, established in 2011 under Porter Capital Corporation, provides same-day invoice funding and competitive factoring rates to assist carriers in improving their cash flow and managing unpaid invoices. Particularly beneficial for owner-operators and smaller carriers, the company offers personal representatives and both recourse and non-recourse factoring. With a dispatching network featuring pre-approved brokers and shippers, Porter Freight Funding extends additional services like fuel cards, insurance quotes, and compliance assistance. However, challenges reported by some customers include difficulties in reaching account managers, increased involvement required in the factoring process, specific monthly factoring volume requirements for carriers with three or more trucks, and a relatively limited list of pre-approved brokers, reducing flexibility.
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Saint John Capital
Established in 2009 with a complete focus on the transportation industry, Saint John Capital has become a prominent provider of factoring services for trucking companies in the U.S., Canada, and Mexico. Headquartered in Chicago, Illinois, Saint John Capital offers 100% factoring advances, ensuring prompt payment for multinational corporations and single-truck carriers. Notable features include the availability of a line of credit, competitive factoring rates, advances up to 100%, and the convenience of uploading invoices and bills of lading from a mobile device, with the added advantage of same-day payment.
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Riviera Finance
Specializing in small and medium-sized trucking companies, Riviera Finance offers flat-rate factoring, customizable collection services, and a client portal for easy access to account information. Their factoring services are designed to enhance cash flow and provide insights into the factoring process. However, customer feedback suggests that Riviera Finance may be technologically behind compared to other factoring companies. They lack an advanced mobile app, a fuel card program, or free 24/7 broker checks. Some customers also mention inconsistencies in the service provided.
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TAFS
TAFS, a financial company founded in 2007, specializes in factoring services for owner-operators in the trucking industry. With a commitment to continuous learning and investment in the transportation sector for over 15 years, TAFS has established itself as a leader in providing secure and efficient solutions for expediting accounts receivables. Operating from its headquarters in Olathe, Kansas, TAFS offers notable factoring features such as 1-hour advance options, access to the TAFS mobile app, and competitive rates.
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TBS Factoring
TBS Factoring, a trusted company with over 50 years of experience, specializes in providing truck factoring services to companies of all sizes. Alongside flat-rate factoring, TBS Factoring offers recourse and non-recourse factoring programs, fuel cards, and a mobile app. Whether a business is in its initial stages or has decades of experience, TBS Factoring aims to enhance cash flow. While the company provides carriers with knowledgeable account managers, customer reviews vary, with some praising account managers and others highlighting challenges in communication consistency, contract transparency, and accessibility.
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Triumph Financial Services LLC
Triumph Financial Services LLC is an all-encompassing financial institution for transportation companies, specializing in freight factoring for freight brokers, fleets, and owner-operators. Established in 2004 and headquartered in Coppell, Texas, Triumph Financial Services goes beyond factoring, providing solutions such as asset-based lending, fuel programs, equipment financing, and truck insurance. Notable features include same-day funding, a non-recourse program, no minimums, no reserves, and fuel card programs.
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WEX
While WEX is primarily known for its fuel cards, it extends its services to include factoring. With WEX's flat-rate factoring program, clients benefit from instant cash access without monthly minimums or invoice funding limits. The offering includes a dedicated account representative, a mobile application, and comprehensive fleet reporting and analytics. Notably, WEX provides flexibility by not mandating clients to factor all their invoices with them. However, customer feedback highlights challenges like slow payments, unclear contracts, chargebacks, and difficulties reaching account representatives.
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Truckstop
Truckstop caters to large, established carriers and newer companies or smaller fleets through its freight factoring program. Providing recourse and non-recourse factoring, along with flat-rate factoring without minimum monthly volume requirements, Truckstop ensures accessibility for various carriers. The company offers additional benefits such as a mobile application, free broker checks, and TMS integrations. Although Truckstop has positive reviews on TrustPilot, the majority pertain to the load board, offering limited information on the factoring services.
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Orange Commercial Credit
Orange Commercial Credit specializes in factoring services geared toward larger fleets. With an emphasis on flat-rate factoring featuring no minimum requirements, transparent fees, seamless invoice uploading, and dedicated account executives, Orange Commercial Credit also partners with a fuel card provider. However, the network is relatively small, with just under 2,000 stations. Customers note challenges in understanding Orange Commercial Credit's offerings due to a less informative website compared to other factors.
How much does a factoring company for trucking charge?
Factoring companies that help trucking companies with their money might only pay part of the amount for the invoices. They usually buy the invoices at a discount. When choosing a factoring company for trucking, it's important to look at how big this discount is. However, these companies usually don't tell you the price upfront. They decide on the discount based on a few things:
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If you want recourse or nonrecourse factoring
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Who your customers are
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How many invoices do you have
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If you prefer a flat factoring fee (the same percentage for every invoice) or a tiered factoring rate (a lower fee for quick payments and a higher fee for slower payments)
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If the company also charges fees for submitting or processing invoices
That's why it's crucial to carefully read the contract before signing up so you understand all the costs involved.
Is a factoring company for trucking a good choice?
Do your research and explore different options for your business growth. While freight factoring helps manage cash flow from unpaid invoices, there are alternatives like credit cards or a business line of credit. Each option has benefits and considerations, so choose the one that suits your trucking company's needs. Remember, having a reliable financial partner can provide extra resources and benefits over time, whether it's a cash advance, business advice, risk management, or building trusted relationships.