Best Factoring Company for Trucking: Key Providers to Consider

The trucking industry is the backbone of commerce, ensuring goods are transported efficiently across the country. However, many trucking companies face cash flow challenges due to delayed payments from clients who may take 30, 60, or even 90 days to settle invoices. This can make it difficult for trucking businesses to cover operating costs such as fuel, maintenance, and payroll. Factoring services offer a financial solution, allowing trucking companies to get immediate cash for their unpaid invoices, helping them stay operational without waiting for customers to pay.

What Is Factoring for Trucking?

Factoring for trucking—also known as freight factoring—is a financial service where trucking companies sell their unpaid invoices to a factoring company in exchange for immediate cash. This allows trucking companies to cover essential expenses such as fuel, truck repairs, and driver payroll without having to wait for clients to settle their invoices.

Factoring companies typically advance 70-95% of the invoice value upfront, with the remaining balance paid after the customer pays, minus a small factoring fee. This can be a game-changer for trucking businesses that need consistent cash flow to stay on the road and maintain operations.

Key Benefits of Freight Factoring for Trucking Companies

Immediate Cash Flow: Trucking companies can receive cash within 24-48 hours after submitting their invoices, ensuring they have the funds to cover fuel, payroll, and other expenses.
Fuel Cards and Discounts: Many factoring companies offer fuel cards with discounts at truck stops, helping trucking companies reduce their fuel expenses.
Outsourced Collections: The factoring company handles collections, allowing trucking companies to focus on driving and managing operations without worrying about chasing down late payments.
No Debt Incurred: Unlike traditional loans, factoring doesn’t involve taking on debt, as businesses are simply selling their invoices for cash.
Scalable Financing: As trucking companies take on more jobs and issue more invoices, they can factor more invoices, providing consistent access to working capital.

Best Factoring Companies for Trucking: Key Providers

Here are some of the top factoring companies that specialize in providing services tailored to the trucking industry:

1. Triumph Business Capital

Triumph Business Capital is one of the most well-known factoring companies for trucking businesses. They offer flexible factoring solutions, including recourse and non-recourse factoring, and specialize in helping small to medium-sized trucking companies maintain steady cash flow. Triumph also provides valuable resources such as fuel cards and discount programs that help trucking companies manage costs more effectively.

Advance Rate: Up to 95%
Fees: Starts at 1.5% per invoice
Additional Services: Fuel cards, fuel discounts, free credit checks, online account management, load boards
Best for: Trucking businesses looking for industry-specific solutions, including fuel cards and discounts.

2. eCapital

eCapital is another top factoring company that specializes in the trucking industry. They provide fast and flexible freight factoring services, allowing trucking companies to access funds within 24 hours. eCapital also offers fuel cards, fuel advances, and 24/7 access to funds through their client portal, giving trucking companies more control over their cash flow.

Advance Rate: Up to 95%
Fees: Starts at 1% to 3%
Additional Services: Fuel cards, fuel advances, 24/7 access to funds, mobile app for invoice submission
Best for: Trucking companies looking for quick cash advances and comprehensive cash flow management tools.

3. OTR Capital

OTR Capital focuses on providing factoring services specifically for the trucking industry. They offer no long-term contracts, making it easier for trucking companies to factor invoices as needed. OTR Capital is known for its simple and transparent pricing, with no hidden fees and a commitment to helping trucking companies improve cash flow. OTR also offers fuel card discounts and free credit checks for customers.

Advance Rate: 90% to 95%
Fees: Varies based on invoice volume and customer creditworthiness
Additional Services: Fuel card discounts, free credit checks, online portal for invoice management
Best for: Trucking companies seeking flexible terms with no long-term contracts or hidden fees.

4. RTS Financial

RTS Financial is a popular choice for trucking companies due to its comprehensive set of services. In addition to factoring, RTS offers fuel discounts at over 1,900 truck stops, along with fuel advances that allow trucking companies to access up to 50% of their invoice value immediately for fuel purchases. RTS Financial also offers load boards, which can help trucking companies find new jobs and keep their trucks moving.

Advance Rate: Up to 97%
Fees: Competitive, varies by customer creditworthiness
Additional Services: Fuel advances, fuel card discounts, load boards, equipment financing
Best for: Trucking companies looking for fuel discounts and additional services like load boards to find new jobs.

5. TAFS (TransAm Factoring)

TAFS specializes in offering factoring services to owner-operators and small fleet trucking companies. They provide fast access to cash for unpaid invoices and offer extra services like fuel discounts, fuel advances, and 24/7 access to your account. TAFS also prides itself on providing excellent customer service and building long-term relationships with trucking companies.

Advance Rate: Up to 90%
Fees: Starts at 2% to 4%
Additional Services: Fuel advances, fuel card discounts, mobile app, 24/7 account access
Best for: Small and owner-operator trucking companies seeking personalized service and fuel management solutions.

6. FleetOne Factoring

FleetOne Factoring offers flexible factoring solutions designed to support trucking companies of all sizes. They offer fast approvals and same-day funding, helping trucking businesses improve cash flow quickly. FleetOne also provides fuel cards and fuel management tools to help trucking companies control fuel costs and track expenses.

Advance Rate: Up to 90%
Fees: Varies depending on invoice volume and customer credit
Additional Services: Fuel cards, fuel discounts, online portal for invoice submission
Best for: Trucking companies that need fast approvals and same-day funding with comprehensive fuel management options.

How to Choose the Right Factoring Company for Your Trucking Business

Finding the right factoring company depends on your business's specific needs, cash flow challenges, and long-term goals. Here are some factors to consider when choosing the best factoring company for your trucking business:

1. Advance Rates and Fees

Look for a factoring company that offers high advance rates (typically 90-95%) and reasonable fees. Make sure you understand the fee structure and whether there are any hidden fees, such as administrative or collection fees.

2. Additional Services

Many factoring companies offer value-added services like fuel cards, fuel discounts, and load boards. These additional services can provide significant savings and help you better manage your trucking business.

3. Contract Flexibility

Consider whether you want to factor all your invoices or just some of them. Some factoring companies offer spot factoring, which allows you to choose which invoices to factor without locking into long-term contracts.

4. Customer Service and Support

Good customer service is essential when working with a factoring company. Choose a company that offers responsive, 24/7 support, as well as an easy-to-use online portal for managing your invoices.

Conclusion

Factoring services can be a game-changer for trucking businesses, providing immediate cash flow to cover essential expenses and keep operations running smoothly. Choosing the right factoring company can make all the difference, ensuring you get the best advance rates, the right additional services (like fuel cards and discounts), and excellent customer support.

Whether you're an owner-operator or a growing fleet, factoring companies like Triumph Business Capital, eCapital, RTS Financial, and OTR Capital offer tailored solutions that can help you overcome cash flow challenges and maintain your business's financial health. By considering your specific needs and comparing different factoring providers, you can find the best fit for your trucking business and stay on the road to success.