7 Best Factoring Companies For Freight Brokers In 2024
The best factoring companies for freight brokers are RTS Financial, Triumph, and altLINE.
Freight brokers are the middlemen keeping goods moving smoothly between shippers and carriers. But cash flow can be a real headache, especially when you are waiting weeks or even months for clients to pay. Meanwhile, you must pay your carriers on time, and you still need funds to keep the business running. That’s where factoring comes in.
Factoring is a straightforward way to get cash fast by selling your invoices. It helps you cover expenses, pay carriers, and keep everything on track. Not all factoring companies are the same. Finding the right one can impact your business.
In this blog, we will discuss the 7 best factoring companies for freight brokers in 2024. We will show what they offer and how they can help you. Whether you want competitive rates, flexible terms, or extra perks, you will find an option here.
Our Top Picks For Factoring Companies For Freight Brokers
- Funding Rate: Up to 97%
- Same-Day Funding: Yes
- Non-Recourse Factoring: Yes
- Mobile App/Portal: Web portal & RTSPro app
- Contract Requirements: No minimum revenue
- Other Highlights: ProTransport software, fuel discounts
- Funding Rate: Up to 100%
- Same-Day Funding: Yes
- Non-Recourse Factoring: Yes
- Mobile App/Portal: MyTriumph portal
- Contract Requirements: Flexible fee structures
- Other Highlights: Insurance coverage, flat and variable fee rates
- Funding Rate: Custom (Recourse)
- Same-Day Funding: Yes
- Non-Recourse Factoring: No
- Mobile App/Portal: Web portal
- Contract Requirements: No minimum revenue
- Other Highlights: Lower rates due to direct banking relationship
- Funding Rate: Up to 100%
- Same-Day Funding: Yes
- Non-Recourse Factoring: Yes
- Mobile App/Portal: Web portal
- Contract Requirements: Flexible terms
- Other Highlights: Personalized service, invoicing tools
- Funding Rate: Flat 2% commission
- Same-Day Funding: Yes
- Non-Recourse Factoring: Yes
- Mobile App/Portal: Mobile app & portal
- Contract Requirements: No long-term contracts
- Other Highlights: Discounted fuel cards, 24/7 access to invoice tracking
- Funding Rate: 1.25%
- Same-Day Funding: Yes
- Non-Recourse Factoring: No
- Mobile App/Portal: Online access
- Contract Requirements: No minimum revenue
- Other Highlights: AI-based forecasting, flexible funding options
- Funding Rate: 1.25%-5%
- Same-Day Funding: Yes
- Non-Recourse Factoring: Yes
- Mobile App/Portal: Mobile app
- Contract Requirements: No funding minimum
- Other Highlights: Free credit checks, collections, accounts receivable management
How to Choose the Best Factoring Company For Freight Brokers
Funding Rates and Terms
Funding rates and terms are important when choosing a factoring company. Look for companies offering high advance rates (90% or more) and clear, simple fee structures. Ensure the terms align with your cash flow needs and that you understand all associated costs.
Non-Recourse vs. Recourse Factoring
Non-recourse factoring means the factoring company assumes the risk of unpaid invoices. Recourse factoring places that risk on you. Non-recourse factoring provides more security, but it usually has higher fees. On the other hand, recourse factoring is cheaper, but it carries more risk.
Speed of Funding
Speed of funding is a must in the freight industry. Choose a factoring company that offers same-day or next-day funding to keep your cash flow consistent. The quicker you can access funds, the less likely your business will experience delays or financial strain.
Customer Support and Technology
Customer support and technology are key in managing your factoring relationship. Choose companies with user-friendly online portals or apps that allow you to easily track invoices and payments. Quick and responsive customer support is necessary for smooth operations.
Flexibility in Terms
Flexibility in terms is important to avoid being locked into long-term contracts. Find factoring companies that do not require minimum revenue or long-term contracts. This lets you grow your business as needed.
Additional Services
Additional services, such as fuel cards or credit checks, can add value. Some factoring companies provide tools to help manage your operations more efficiently, which can save time and reduce costs.
Reputation and Experience
Reputation and experience matter when selecting a factoring company. Choose a company with a good history in the freight industry. They will understand your needs and offer reliable service. Check reviews and testimonials to ensure you’re working with a trustworthy partner.
7 Best Factoring Companies For Freight Brokers In 2024
RTS Financial
RTS Financial is a top choice for freight brokers looking for fast, reliable factoring services. They offer same-day funding up to 97% of invoice value, ensuring brokers have immediate access to working capital. Their online platform and RTSPro mobile app let brokers submit invoices, track payments, and manage receivables from any location.
In addition to factoring, RTS provides fuel card programs and trucking management tools to support freight operations. These added services make RTS a practical and efficient partner for brokers managing cash flow and daily operations.
Why Should You Choose RTS Financial?
- Advance funding up to 97% of invoice value
- Same-day funding for fast cash flow
- Web portal and RTSPro mobile app for easy account management
- No revenue requirements for trucking companies
- Additional tools like ProTransport trucking software and fuel card programs
Triumph
Triumph specializes in factoring services for freight brokers, offering same-day funding up to 100% of invoice value. Their MyTriumph portal allows brokers to submit invoices, monitor payments, and manage their accounts in real-time, simplifying the funding process.
Triumph offers services like fuel card programs and flexible fee options. These tools help brokers manage cash flow and keep their businesses running well.
Why Should You Choose Triumph?
- Same-day funding up to 100% of invoice value
- Easy-to-use MyTriumph portal for real-time account updates
- Flexible fee structures (flat and variable rates)
- Fuel card programs to save on fuel costs
- Non-recourse factoring for added protection
altLINE
altLINE, backed by Southern Bank Company, offers direct factoring services designed for freight brokers. By cutting out intermediaries, they provide faster and more cost-effective funding solutions. Their focus on recourse factoring ensures brokers have reliable access to cash while keeping costs low.
altLINE’s approach mixes the benefits of factoring with the stability of a bank. This makes it a great choice for brokers who want simple and affordable funding.
Why Should You Choose altLINE?
- Lower rates by eliminating intermediaries
- Direct access to funding backed by Southern Bank Company
- Competitive recourse factoring services
- Reliable customer support with a banking relationship
- Instant refunds and cash advances
CoreFund Capital
CoreFund Capital provides factoring services for freight brokers. They offer same-day funding without long-term contracts or minimum requirements. Their non-recourse factoring option protects brokers from payment defaults, ensuring consistent cash flow without added risk.
CoreFund Capital offers easy online account access and longer funding hours. A reliable partner for brokers who need quick and flexible financial support exists.
Why Should You Choose CoreFund Capital?
- No minimum invoicing or long-term contract requirements
- Same-day funding with extended Saturday hours
- Non-recourse factoring to safeguard against unpaid invoices
- Online access for easy account management
- Fuel discount cards for cost savings
Apex
Apex provides freight brokers with efficient factoring services and excellent customer support. Their mobile app allows brokers to submit invoices, check payment statuses, and access factoring tools anytime. Both recourse and non-recourse factoring options are available, giving brokers flexibility.
Apex provides fuel discounts and an easy-to-use account management portal. This helps brokers simplify their operations and access funds quickly.
Why Should You Choose Apex?
- 24/7 mobile app access for submitting invoices and tracking payments
- Recourse and non-recourse factoring options
- Flat 2% commission rate for competitive pricing
- Fuel card discounts for additional savings
- Reliable customer service to guide new brokers
Breakout Capital
Breakout Capital focuses on helping small and startup freight brokers with flexible factoring solutions. They provide competitive factoring rates and advanced funding options, even for brokers with minimal revenue history.
Breakout Capital has no monthly minimums and offers tools to manage cash flow. This makes it a great choice for new brokers or those needing customized funding solutions.
Why Should You Choose Breakout Capital?
- Factoring rates as low as 1.25%
- No minimum monthly revenue requirements
- Short-term loan options for added flexibility
- Funding receivables before invoices are ready
- AI-based tools to forecast cash flow
Aladdin Capital
Aladdin Capital provides customized factoring services to help freight brokers access quick cash from unpaid invoices. Their non-recourse factoring protects brokers from bad debt, and they offer same-day funding for fast access to working capital.
Aladdin Capital helps freight brokers manage cash flow and lower financial risks. They offer services like credit checks and account management tools.
Why Should You Choose Aladdin Capital?
- Non-recourse factoring to protect brokers from bad debts
- Same-day funding with competitive advance rates
- Discount rates starting from 1.25%
- Free credit checks and account management tools
- Additional services like collections and receivable management
Conclusion
Factoring companies are important for freight brokers to keep their cash flow steady and pay carriers on time. Companies like RTS Financial, Triumph, and altLINE offer fast funding and services that fit the needs of brokers.
To choose the best factoring company, look at funding rates, how quickly they pay, and whether they offer recourse or non-recourse factoring. Also, check for flexible terms, no minimum revenue requirements, and helpful tools like mobile apps. These factors will help brokers find the right company for their business.