Best Factoring Companies for Trucking in 2021
Compare the best freight factoring companies for trucking in 2021. See rates, fees, and features to choose the right factor for your fleet.
Factoring your freight invoices is a quick way to get cash for fuel, repairs, and payroll without waiting 30 to 60 days for customers to pay. In 2021, the best factoring companies for trucking offer low rates, fast funding, and no hidden fees. This guide breaks down the top options and what to look for so you can make a smart choice.
What to Look for in a Factoring Company
Before comparing companies, know the basics. Factoring companies buy your invoices at a discount, usually 1% to 5% of the invoice value. You get an advance, typically 80% to 95%, within 24 hours. The factor collects from your customer, then pays you the remaining balance minus the fee.
Key factors to compare:
- Advance rate: How much you get upfront. Higher is better, but watch the fee.
- Discount rate: The percentage charged per invoice. Ranges from 0.5% to 5% depending on volume and creditworthiness.
- Contract terms: Some factors require a minimum volume or a long-term contract. Others are month-to-month.
- Additional fees: Look for application fees, monthly minimums, or termination fees. Avoid companies with hidden costs.
- Customer support: You want a factor that handles collections professionally, since they deal with your customers.
- Integration: Does it work with your dispatch or accounting software? Some factors offer fuel cards or load boards as perks.
Top Factoring Companies for 2021
1. Triumph Business Capital
Triumph is one of the largest freight factoring companies, known for low rates and fast funding. They offer same-day funding on approved invoices, and their rates start around 0.5% to 1.5% per week. They have no application fees and no long-term contracts. Their online portal makes it easy to submit invoices and track payments.
- Advance rate: Up to 95%
- Discount rate: 0.5% to 1.5% per week
- Contract: Month-to-month
- Perks: Fuel card program, load board access, and free credit checks on customers.
2. RTS Financial
RTS Financial has been in the trucking industry for over 40 years. They offer competitive rates, usually 1% to 3% per month, and same-day funding. They have no monthly minimums and no long-term contracts. Their mobile app lets you submit invoices from your phone.
- Advance rate: Up to 95%
- Discount rate: 1% to 3% per month
- Contract: No long-term commitment
- Perks: Fuel card, TMS integration, and a dedicated account manager.
3. Factor Finders
Factor Finders is a smaller, family-owned company that focuses on personalized service. They work with small fleets and owner-operators, offering rates from 1% to 4% per month. They have no application fees and no minimum volume. Their customer service is highly rated, and they offer same-day funding.
- Advance rate: Up to 90%
- Discount rate: 1% to 4% per month
- Contract: Month-to-month
- Perks: No hidden fees, free credit checks, and flexible terms.
4. OTR Capital
OTR Capital is a direct lender, not a broker, which means they control the process. They offer rates from 1% to 3% per month, with same-day funding. They have no application fees and no monthly minimums. They also provide a fuel card program and a load board.
- Advance rate: Up to 95%
- Discount rate: 1% to 3% per month
- Contract: No long-term commitment
- Perks: Fuel card, load board, and free credit checks.
5. Bluevine (Not Traditional Factoring)
Bluevine offers a line of credit that works like factoring but is not invoice factoring. It’s a revolving credit line based on your receivables. Rates start around 1% per month, and you can draw funds as needed. This might be a better option if you want more flexibility.
- Advance rate: Not applicable; line of credit up to $250,000
- Discount rate: 1% per month (interest)
- Contract: No long-term contract
- Perks: Fast approval, no collateral, and easy online application.
6. TBS Factoring
TBS Factoring is another major player, offering rates from 1% to 5% per month. They have no application fees and no monthly minimums. They provide same-day funding and a mobile app. Their customer service is available 24/7.
- Advance rate: Up to 95%
- Discount rate: 1% to 5% per month
- Contract: Month-to-month
- Perks: Fuel card, load board, and free credit checks.
Comparison Table
| Company | Advance Rate | Discount Rate | Contract | Perks |
|---|---|---|---|---|
| Triumph Business Capital | Up to 95% | 0.5% - 1.5% per week | Month-to-month | Fuel card, load board, free credit checks |
| RTS Financial | Up to 95% | 1% - 3% per month | No long-term | Fuel card, TMS integration, account manager |
| Factor Finders | Up to 90% | 1% - 4% per month | Month-to-month | No hidden fees, free credit checks |
| OTR Capital | Up to 95% | 1% - 3% per month | No long-term | Fuel card, load board, free credit checks |
| Bluevine | N/A (line of credit) | 1% per month (interest) | No long-term | Fast approval, no collateral |
| TBS Factoring | Up to 95% | 1% - 5% per month | Month-to-month | Fuel card, load board, 24/7 support |
How to Choose the Right Factor for You
- Assess your needs: How much cash do you need weekly? How many invoices do you factor per month? This will help you compare rates and minimums.
- Check the fee structure: Ask for a sample quote. Calculate the effective cost for your average invoice amount and frequency.
- Read the contract: Look for hidden fees like termination fees or monthly minimums. Some factors charge a fee if you don’t factor a certain volume.
- Test customer service: Call the company and see how they treat you. You want a factor that will handle your customers professionally.
- Consider integration: If you use a TMS or accounting software, check if the factor integrates. This saves time.
FAQ
What is the average factoring rate for trucking?
Rates typically range from 1% to 5% per month, depending on invoice volume, customer credit, and contract terms. Larger fleets with high volume can negotiate lower rates.
How fast can I get funding?
Most top factors offer same-day funding if you submit invoices before a cutoff time, often 12:00 PM or 2:00 PM ET. Some can fund within hours.
Are there any hidden fees?
Some factors charge application fees, monthly minimums, or termination fees. Always read the contract and ask for a full fee schedule before signing.
Can I factor invoices from multiple customers?
Yes, you can factor invoices from any customer, as long as they are creditworthy. Factors will run credit checks on your customers and may decline if the customer has poor credit.
The Bottom Line
The best factoring company for you depends on your volume, customer credit, and need for speed. For low rates and no contracts, Triumph and RTS are strong choices. For personalized service, Factor Finders is worth a look. Always compare quotes from at least three companies and read the fine print. Factoring can be a valuable tool to keep your cash flow steady, but only if you choose the right partner. Start by requesting quotes from the companies above and see which one fits your operation.