Running a trucking business is tough, and waiting weeks or months for customers to pay invoices makes it even harder. That is where factoring companies come in. They buy your unpaid invoices and give you quick cash, helping you cover fuel, maintenance, payroll, and other expenses. But with so many factoring companies out there, how do you choose the right one? Let us break down some of the best factoring companies for trucking, what they offer, and what to look for when picking one.
What to Look for in a Truck Factoring Company
Not all factoring companies are created equal. Here are some key factors to consider before signing up:
- Advance Rates: Most factoring companies offer advances of 80% to 95% of the invoice value.
- Fees: Fees typically range from 1% to 5%, but hidden costs like setup fees, monthly minimums, or termination fees can sneak up on you.
- Recourse vs. Non-Recourse: Recourse factoring means you are responsible if the customer does not pay. Non-recourse means the factoring company takes the hit, but it usually costs more.
- Customer Service: A factoring company should be easy to work with and responsive to your needs.
- Contract Terms: Some companies require long-term contracts, while others let you factor invoices as needed.
- Speed of Funding: Most good factoring companies provide funds within 24 hours.
How to Choose the Best Factoring Company for Your Business
Every trucking business has different needs, so the best factoring company for you depends on your cash flow situation, customer base, and risk tolerance. Here is how to narrow it down:
- Compare Fees & Advance Rates: Lower fees and higher advances are ideal, but do not ignore hidden costs.
- Check for Recourse or Non-Recourse Options: If you want peace of mind, non-recourse factoring is the way to go.
- Look for Fuel Discounts & Extra Perks: Some factoring companies offer fuel card programs that can save you money.
- Consider Contract Flexibility: If you want freedom, go for a company with no long-term commitments.
- Read Reviews & Ask Other Truckers: A company might look great on paper, but real-world experience from other truckers is invaluable.
Top Factoring Companies for Trucking
1. RTS Financial
Why Truckers Love It: RTS Financial is one of the most popular factoring companies for trucking, known for fast funding and competitive rates. They also offer fuel discounts and free credit checks on brokers and shippers.
- Advance Rate: Up to 97%
- Fees: Varies based on volume and contract
- Extras: Fuel card program, credit checks, no hidden fees
2. Triumph Business Capital
Why Truckers Love It: Triumph Business Capital is a solid choice, especially for small to mid-sized fleets. They offer both recourse and non-recourse factoring and even help with collections.
- Advance Rate: Up to 100%
- Fees: Starts at 1.5%
- Extras: Fuel card program, back-office support, insurance services
3. OTR Capital
Why Truckers Love It: OTR Capital provides flexible terms, no long-term contracts, and quick funding. They are great for owner-operators who need reliable cash flow without the hassle of rigid agreements.
- Advance Rate: Up to 95%
- Fees: Starts at 1%
- Extras: No monthly minimums, mobile app for invoice submission
4. Apex Capital
Why Truckers Love It: Apex is a trucker-focused factoring company with 24/7 service, a strong reputation, and a user-friendly online portal for managing invoices.
- Advance Rate: Up to 97%
- Fees: 2% to 5%
- Extras: Fuel discounts, free credit checks, loyalty rewards
5. Thunder Funding
Why Truckers Love It: Thunder Funding is known for its transparency, easy sign-up process, and high advances. They work with both new and established trucking businesses.
- Advance Rate: Up to 90%
- Fees: 2% to 4%
- Extras: No long-term contracts, fuel discounts, free credit checks
Final Thoughts
Factoring can be a great way to keep your trucking business moving without waiting forever for customer payments. The key is finding a factoring company that offers fair rates, fast funding, and flexible terms. Whether you go with RTS Financial for their fuel perks, OTR Capital for no long-term contracts, or Triumph Business Capital for their full-service approach, the right factoring company can make all the difference. Take your time, do your research, and choose a company that works best for your business.