7 Best Factoring Companies For Freight Brokers In 2023
You may be requiring an increase in overall cash flow in your business that becomes sluggish due to outstanding invoice payments from customers. You have a solution ready at your doorstep to resolve the issue. A factoring company will give you the money upfront, and you don’t have to worry about collecting the money from the customer.
The factoring company will buy your invoices and provide more than 80% of their value by charging a small percentage fee on the invoice amount. You have funds for payroll, inventory, or other financial obligations. Some of the best companies provide an advance of at least 90% fund, and that’s also within a day!
In this article, we have evaluated the best factoring companies based on the amount they will factor, their process, the speed of releasing funds, and other additional benefits they provide.
Criteria for Choosing the Best Factoring Company
Factoring companies provide a reliable solution to transport businesses to help overcome cash flow issues caused by late paying customers. As a freight factoring broker, you can associate yourself with any of the best companies and be able to support businesses with ready fund flow and maintain operational efficiency.
But you must find the right invoice factoring company to improve your credibility and earnings in brokerage services. The questions below can help you choose the company you want to be associated with.
- How long, on average, have most clients been with them?
- What are some reasons clients have faith in the company?
- What are some reasons clients switched over to another company?
- What steps does the company take to improve its service?
There are certain factors you should consider when you are evaluating an invoice factoring service. These are as follows:
Fast Funding: A good invoice factoring company ensures cash flow within a shorter time without any hassles. The reliability depends on how quick the approval and turnarounds are.
Industry-specific funding: Some factoring companies specialize in specific industries and know the proper procedures to obtain payment from your unpaid invoices smoothly and optimally.
Fees: A company that offers transparent pricing is more reliable. You should not pay additional charges and get the commission amount as agreed.
Types of factoring: The type of factoring defines whether the risk of non-payment lies on the client or a factor. It also influences the preference for selecting a company. In recourse factoring, the borrowing firm is liable to recover payment from the customer after getting paid by the finance institution. In non-recourse factoring, the factor is responsible for recovering payment from the customer without involving the firm.
Industry expertise: The factoring company you choose to work with must have expertise in the field. They should be knowledgeable about current measures and trends.
Flexibility: Select a company that doesn’t try to bind you into a strict contract and gives you the credit you deserve. There should not be any long-term contracts or hidden charges.
Customer service: Good customer service is crucial when partnering with an invoice factoring company. You must ensure to serve your customers with efficient support and earn their confidence to maintain a trusted relationship. By looking through customer reviews, you can determine if the company is performing well in fund support.
Best Factoring Companies
Choosing the right factoring company to work with is a big decision. Many companies are providing various benefits in the area of factoring. We have listed the seven best companies that allow you to enjoy the benefits of the trucking business.
This article intends to offer readers a list of products and services available in the market. We do not rank or evaluate the brands, products, and services in any manner. The aim is to educate the customer on the various solutions and offer them suitable options based on their requirement and budget.
1. RTS Financial
RTS Financial is a leading invoice factoring company that specializes in trucking and the freight industry. RTS is the ideal choice for most trucking companies, especially fleets with five or more trucks. It serves truck companies with same-day funding of up to 97% of the invoice value. RTS works through a web-based platform and mobile app, RTSPro, ensuring efficient customer service. It allows clients to manage their accounts from anywhere.
The portal provides facilities for submitting invoices and helps track brokers’ latest payment and credit information, access fuel discounts and available loads, upload invoices for factoring, and manage account receivables. They also offer a full-service trucking software called ProTransport that offers load management and tracking. RTS also offers the additional service of a fuel card to help reduce gas charges at different fuel stations.
- Advance funding rate 97%
- Non-recourse funding
- Same-day fund release
- Web portal and mobile app support
- No revenue requirements for trucking companies
Triumph has received acknowledgement from many transporters for its reliable and efficient service. It offers solutions for small-size transport businesses to companies involving hundreds of trucks. It provides you with a straightforward and speedy process to provide fund support as soon as possible. A standout feature is their easy-to-use web portal that offers a simple way to manage your funding. You will always remain updated with your account information.
This portal has a lot of favourable features that make Triumph one of the best factoring companies for invoice management. Customers can stay up to date on their accounts from anywhere with real-time information by logging into their MyTriumph dashboard. Customers can view requests, payments, and invoice searches and seek immediate support from their customer service team. When you access the portal as a client, you’ll have ready access to your invoice management fee structure.
- Same-day funding up to 100%
- Flat and variable fee rates
- Non-recourse factoring
- Fuel card programs
- Insurance coverage
altLINE is a factoring company operating under the Southern Bank Company’s umbrella, providing direct access to funding without intermediaries. By eliminating intermediaries, the company reduces costs and improves reliability and trust for its clients. It offers the same services as independent factoring companies while providing the benefits of collaborating with a local bank, such as factoring invoices and providing cash advances.
According to customer feedback, altLINE provides excellent customer service with knowledgeable and friendly staff who are always willing to go the extra mile for their clients.
The lack of a non-recourse factoring option in the altLINE business model raises the possibility of a chargeback in the event that a consumer defaults on a payment. Non-recourse options, however, could necessitate the factoring provider taking on more risk, leading to higher fees. AltLINE is a great choice to think about if you need a recourse factoring service.
- Review and analysis of recourse
- Excellent customer service
- Instant refunds
- Increased self-assurance due to maintaining a banking relationship
- Lower interest rates due to being the lender of last resort
4. CoreFund Capital
CoreFund Capital is an exceptional factoring company, as evidenced by its loyal customer base who have reported years of seamless business dealings. The company is renowned for its dependable track record in delivering cash to customers promptly on the agreed-upon day, as well as for providing excellent service to its clients.
CoreFund Capital offers a range of services to support your business, including funding through non-recourse factoring schemes, immediate settlements, extensive preparation, and fuel discount cards. Their online banking service allows you to access your account at any time, and they have added Saturday hours for funding. Additionally, CoreFund Capital has no minimums or commitments of any kind, providing you with the flexibility you need.
If you’re seeking a reputable factoring company, CoreFund Capital is undoubtedly worth considering. They can provide you with the funds you need at a competitive interest rate, allowing you to start your journey without delay.
- Same-day funding
- Non-recourse program
- Attractive discounts on fuel cards
- Round the clock access to account
- No need for long-term contracts or minimum amount for invoicing.
Apex is one of the leading factoring companies and is renowned for its quality customer service. They have a team of professional executives that are very helpful in helping clients navigate the factoring process and advance the invoices quickly. The service is resourceful for new fleet operators by guiding them with adequate knowledge. It helps them effectively factor in their invoices and grow their businesses.
Apex leverages some advanced tools to help make the process more accessible and convenient. It also offers a mobile app to allow easy access from any location and get updates about the factoring process. The mobile app gives 24/7 access to the factoring activities and allows clients to create and submit invoices, run credit checks, and submit important documents online.
- Recourse and non-recourse factoring
- Flat 2% commission rate
- Fuel card discounts
- Online Account Management Portal
6. Breakout Capital
It offers a flexible solution that suits new and small businesses. They also provide the opportunity to avail customized solutions for businesses that don’t meet qualifications from other lenders and factoring companies. There is no minimum monthly revenue requirement which is an advantage for startup trucking businesses. It uses advanced AI-based technology to forecast cash flow.
- Factoring rate 1.25%
- Fund receivables before invoices are ready to factor
- Short-term loan options
- Flexible maximum advance amount
7. Aladdin Capital
The Aladdin Capital team offers customized factoring solutions to help businesses improve their cash flow by converting their unpaid invoices into immediate cash. Their factoring services are tailored to meet the needs of various industries, including transportation, manufacturing, construction, staffing, and government contractors. They provide non-recourse factoring, which means that they assume the credit risk of the invoices they purchase, so their clients are protected from bad debt
Aladdin Capital provides fast funding and real-time account access with same-day funding available. They offer competitive factoring rates with funding up to 90% of the invoice value and no funding requirements. They offer additional services such as credit checks, collections, accounts receivable management, and supply chain financing.
- Discount rate: 1.25%-5%, advance rate: 100%, factoring fees: 1.25%
- Free credit checks available for customers
- Mobile app provided for easier invoice tracking
Freight factoring is a great way to manage cash flow from outstanding invoices. It is a way to meet liquidity needs without waiting for several months to get paid by customers.
This article highlights seven top factoring companies that offer you resources and benefits through quick cash advances and business advice.
We hope the information guides you on the path of business growth with trusted relationships with the factoring company.