9 Best Factoring Companies for Trucking
Deciding which load factoring company to engage with is significant for any carrier. Factoring has many advantages, but to fully enjoy it, you must select the best organization. Matrack has consulted several specialists to get their recommendations for the top factoring firms serving truckers to streamline the procedure.
- WHAT IS FREIGHT FACTORING?
- The Top 9 Best Companies for Freight Factoring
- FINAL WORDS
WHAT IS FREIGHT FACTORING?
The practice of selling an invoice to a factoring company is known as freight factoring, sometimes known as transportation factoring, truck factoring, or freight bill factoring. Within, Twenty-four hours of receiving the invoice, the factoring company pays the carrier or owner-operator the invoice amount minus a tiny percentage. In many cases, this is preferable to waiting a month or more for a broker to settle the invoice. The time it takes to get paid will vary depending on several variables, but generally speaking, different factoring companies will have varying payment schedules.
The most important thing to remember is that loan and factoring are two completely different things. Your invoice becomes the company’s property once a factoring company has purchased it. Factoring enables firms and drivers to receive payments in advance and use the money to pick up new loads without taking out a loan or incurring debt.
The ten freight factoring businesses listed below have been chosen based on comments from carriers and owner-operators and have then been reviewed by professionals in the field.
The Top 9 Best Companies for Freight Factoring
Here are our top choices for freight factoring businesses, along with details to help you decide if your company would benefit from taking out this small business loan.
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.
There is no doubt that CoreFund Capital is an outstanding factoring company. Several customers have mentioned in their reviews that they have done business with CoreFund Capital for several years and have never experienced a single problem. The dependable track record of the firm among its clientele is known for its promptness in delivering customers’ cash on the agreed-upon day, in addition to the excellent service that the company provides to its customers.
These are some of the things that CoreFund Capital can do for you:
- Funding through non-recourse factoring schemes
- Immediate settlements
- Extensive preparation
- Fuel discount cards
- This online banking service allows you to access your account whenever you like.
- Saturday hours added for funding
- No minimums
- No commitments of any kind
If you are looking for a respectable factoring company, there is no question that CoreFund Capital is a choice worth considering for you to go. They can lend you the money you require at an affordable interest rate, allowing you to start your journey without further delay.
The Apex Freight Factoring Corporation is yet another excellent freight factoring firm. Apex, one of the longest-running factoring companies, was founded in 1995. Apex’s outstanding customer care keeps its customers abreast of their billing activity.
The majority of Apex’s customers have nothing but praise for the company. Many clients appreciate the promptness with which they receive advances on their invoices and assistance from their account administrators, helping new carriers expand their operations without learning the ins and outs of factoring in bills. The fact that a sizable portion of Apex’s clientele feels cared for bodes well for the business.
Apex provides the following service highlights on top of their extensive experience and excellent customer service:
- Varieties of factoring, including both recourse and non-recourse
- 2% flat rate added on outstanding invoices
- There is no minimum monthly volume required to avoid costs.
- There will be no charges for canceling your membership.
- Checking your credit score costs you nothing.
- There will be no surprise fees.
- Discounts on fuel cards.
- You can use their free Account Management Portal (AMP), day or night, whenever you like.
- You may now factor from any location thanks to a mobile app equipped with image-capturing technology.
- Personalized service from a devoted account executive.
The Apex is an excellent option for organizations of any size, but it requires more preparation than other factoring firms. While you can terminate contracts with Apex at any time without penalty, you must do factoring exclusively through Apex. In contrast to other factoring providers, Apex doesn’t let you pick and choose which invoices you wish to factor in, even if you have a contract. Therefore, you can like and determine which invoices to factor in and which ones you’d rather not pay the factoring company’s percentage on.
Breakout Capital Factoring Company is a financial institution that specializes in providing working capital solutions to small and medium-sized businesses. The company was founded in 2015 and is headquartered in McLean, Virginia. Breakout Capital Factoring Company offers a variety of financing products, including invoice factoring, asset-based lending, and term loans.
The key features of Breakout Capital Factoring Company are:
- Focus on small businesses
- Commitment to transparency
- Fast and efficient funding solutions
The factoring rate is 1.25%, and Breakout Capital Factoring Company allows funding of receivables prior to invoice factoring. They also offer short-term loan options and flexible maximum advance amounts.
The company understands the challenges faced by small businesses when it comes to accessing financing, and it has designed its products to meet the needs of these businesses. This includes flexible financing solutions that can be tailored to the unique needs of each business.
Breakout Capital Factoring Company is transparent about fees and works closely with clients to ensure they understand financing terms, building trust and enabling informed decisions. They also offer fast funding solutions designed to minimize hassle. Additional services include access to business advisors for guidance on growth, marketing, sales, and financial management.
Triumph Transportation Factoring is highly regarded by transporters for its reliable and efficient service, offering solutions for small to large-sized businesses. The company provides a straightforward and fast process for funding support, with an easy-to-use web portal that allows for efficient management of funding. The portal offers real-time account information, enabling customers to stay up-to-date on their accounts from anywhere, view requests, payments, and invoice searches, and receive immediate support from the customer service team.
Some key features:
- Fuel card discounts available of up to 22 cents per gallon at more than 2,400 gas stations.
- The web portal provides real-time invoice updates and access to credit checks.
- Same-day funding is available.
- 1%-4% Discount rate, origination fee of $300
One of the standout features of Triumph’s factoring services is its web portal, which has many favorable features that make it one of the best factoring companies for invoice management. Clients have ready access to their invoice management fee structure and can manage their funding needs with ease.
Triumph Transportation Factoring offers same-day funding up to 100%, with flat and variable fee rates and non-recourse factoring. Additionally, they provide fuel card programs and insurance coverage. Overall, Triumph Transportation Factoring is a reliable and efficient option for transport businesses in need of funding solutions.
You might also consider Provident Commercial Finance, a reliable account receivable factoring company. Working with Provident Commercial Finance is more than simply a financial relationship; it’s also a consulting partnership, so you can get guidance on factoring that will help your business expand. Provident Commercial Finance’s full-service approach to factoring lets you rest comfortably knowing your needs are met.
Services offered to their clients by Provident Commercial Finance include:
- creating invoices,
- securing financing,
- collecting payments, and
- reporting the results.
The lack of transparency regarding Provident Commercial Finance’s fees and other terms is its main drawback. Customers interested in this information must initiate contact with the company, as it is not provided in any form until they specifically request it.
altLINE, which The Southern Bank Company offers a customer financing platform that is founded on accounts receivable. It is a bank factoring firm that provides the same services as independent factoring companies, in addition to delivering the benefits of collaborating with a local bank. These services include factoring invoices and giving cash advances.
The following is a list of some of the advantages of using altLINE:
- A Review and Analysis of Recourse
- Excellent service to the clientele
- Instantaneous refunds
- achieving an increased level of self-assurance and confidence as a result of maintaining a banking relationship
- Because it is the lender of last resort, the bank offers meager interest rates (and removes the middleman)
The present consumers of altLINE have provided feedback indicating that the company offers excellent customer service. The staff is knowledgeable, friendly, and always willing to go the extra mile for their clients.
The fact that altLINE’s business model does not offer a non-recourse factoring option is the only potential shortcoming it has. You risk getting a chargeback if the customer doesn’t pay. There are those people who actively seek to be in trouble with the law. Non-recourse solutions may require the factoring business to assume additional risk, increasing the fees charged. If you need a recourse factoring service, there is no question in anyone’s mind that you should go with altLINE.
Although Thunder Funding is one of the most recently established organizations here, that doesn’t make it any less of a leading factoring alternative. Thunder Funding, in contrast to other firms, operates solely in the freight financing industry. Indeed, the business was founded by working truck drivers who had grown tired of waiting for their wages.
Thunder Funding stands out from competing factoring firms primarily because it provides a complete copy of its contract before application submission. That way, you know precisely your financial commitment before making it.
The following are some of the company’s factoring services:
- Factoring without the risk of repayment
- Higher than average rates for factoring providers, ranging from 2% to 4%
- Discount cards for gas and fuel
- Checking your credit score costs you nothing.
- Online access is available around-the-clock.
- Choice of which clients to focus on
- Instantaneous funding
Thunder Funding’s rates are more than average. However, this is the only negative aspect of the service. Despite this, they remain a strong factoring option for those seeking shorter terms.
As a top trucking factoring company, TAFS offers dependable accounts receivable (AR) financing with competitive rates. They often provide payment within an hour or two, and their mobile app allows clients to upload invoices directly from their smartphones. TAFS also offers additional benefits, such as fuel discounts, free credit checks, and back-office support for truckers.
Here are some things about TAFS that might interest you:
- Employs experienced truckers as part of its team
- Provides customized factoring packages for single loads and long-term contracts
- Features a live chat assistant to answer some factoring-related queries
- 100% Advance Rate
- $5 standard fee
However, it’s important to note that TAFS operates as a recourse-only factoring company. This means that if a customer fails to pay their invoice, the client will be liable to pay for TAFS’ services. Despite this, TAFS remains a reliable option for trucking businesses seeking fast and efficient factoring services.
RTS provides high-quality freight factoring and a wide range of services explicitly developed for truck drivers. These services include fuel cards and business management software that can assist you in running your company. Software assistance can simplify the management of your factoring agreement with RTS and other aspects of your business.
RTS Financial because they have an agent and referral program that allows you to collect a share of the factoring fee for loads that customers factored that you introduced. They also provide a reduced cost, and they have an app that lets you process your shipments and check the status of your shipment at any time. Last but not least, should you require it, they can provide funding on the same day or within the hour.
All these aspects contribute to RTS’s position near the top list of the most successful freight factoring companies. In addition, the following are some of the additional benefits that make RTS an excellent option for owner-operators:
- The non-recourse factoring approach
- Up to 97 percent of the value of the invoice is paid in advance.
- Equipment leasing options
- A fuel card scheme that offers a significant credit line
- Software that is relevant to trucking
- An intuitive smartphone application
- Support for customers that is of high quality via e-mail, telephone, and online chat
Customers frequently cite the company’s competitive pricing and prompt payment processing as the primary reasons when asked why they chose RTS for their freight factoring needs. In principle, consumers can get up to 97% of their invoice in advance. Due to RTS’s lack of openness concerning its pricing, this statistic comes with a few caveats that make it more complicated. Even after speaking with their customer care department, it can be challenging to identify precisely what fees you will be responsible for paying.
RTS presents several challenges, one of which is the inability to apply for the service via the company’s website, in contrast to the majority of other factoring providers. Instead, it would help if you had a conversation with a sales professional who would talk to you about your company and options. This is something that many people consider less convenient than just applying online before getting in touch with a representative.
CHOICE OF TRANSPORTATION FACTORING PROVIDERS
There are additional aspects to take into account. However, we suggested factoring businesses that can be useful for your trucking business. You can make your decision using the following interview questions.
- What is the average length of service?
- Why have clients contacted them?
- Why do customers quit their businesses?
- How is the service being improved?
TERMS OF FREIGHT FACTORING
Before signing, carefully read and understand the contract. Before signing, all factoring businesses recommended having a lawyer review the deal.
- Factoring charges
- Will all fees be listed in the contract?
- Is there a minimum amount of money I need to invoice monthly to keep my account open?
- A promise made personally?
- Does it arbitrate legal disputes?
- How can factoring be ended?
UNIFORM COMMERCIAL CODE (UCC) FILING
To inform other banks of their priority lien on your assets, factoring providers file UCCs. Unresolved UCC filings could also prohibit switching invoice factoring companies.
- UCC filing requirements?
- Date of UCC filing?
- Is the UCC filed before I submit my first invoice?
- Do they file a UCC on each asset or the receivables they factor in?
- How can I remove a UCC filing?
SERVICE TO CUSTOMERS
The customer service provided by an invoice factoring business is invaluable. Your account manager will still be there even if credit checks are automated. Be amiable and knowledgeable about your industry.
- What do they give up to get the cheapest rates?
- Can you ask someone for assistance?
- Who can I contact for platform or broker problems?
- Could you travel?
- Will your account manager return calls and e-mails?
- Account managers, are they familiar with trucking?
Use our information and your research to start expanding your company. Smaller trucking companies use it to cut back on administrative tasks and do away with the 30- to 90-day payment cycle.
The use of freight factoring benefits your company. Over time, cash advances, business advice, risk mitigation, and loyal relationships should pay off.