The Best Trucking Factoring Companies of 2021

Our trucking factoring company reviews are the result of over 40 hours of research on 30+ trucking factoring companies from across the web. These reviews and our trucking factoring company guide help small businesses and startups find the best trucking factoring company for their business.

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How We Chose the Best Trucking Factoring Companies

There are numerous trucking factoring companies available, offering multiple features and services for trucking companies and owner-operators. We evaluated these companies on the details that are most important, such as interest rates and loan terms, qualification requirements, and the amount of time it takes to receive funding after submitting invoices.

Interest Rates and Loan Terms

Interest rates and loan terms are among the first things to consider when choosing a truck factoring company. These factors have a huge effect on a trucking firm’s revenue because extremely high interest rates and unfavorable terms cut into the amount of money the trucking company ends up getting. Recourse factoring and non-recourse factoring are two important terms to know because these terms determine whether the trucking firm must pay the money back if the truck factoring firm can’t collect or the factoring firm must assume the risk.

Qualification Requirements

Qualification requirements are another important consideration we looked at when choosing the top 15 freight factoring companies. This information is important because it includes credit scores and the annual revenue requirements each factoring firm must see before taking on a trucking firm as a client. Having this information in hand lets a trucking firm know up front which factoring companies are most likely to see the trucking company’s value as a client.

Time to Funding

We included turnaround time for factoring because receiving funds quickly is the reason trucking companies use factoring firms. The companies we chose offer quick turnaround from the time invoices are submitted until funds are delivered to the trucking companies that use them.

The 14 Best Trucking Factoring Companies of 2021

CompanyInterest RatesFunding AmountMore
ACS FactorsCustom ratesUndisclosedVisit ACS Factors
BlueVineLine of Credit Flex6: 0.3% to 1.5% per week
Line of Credit Flex12: 1.5% to 6.5% per month
Discount rate of 0.3% to 1.1% per week for Invoice Factoring
Up to $5,000,000Visit BlueVine
CoreFund CapitalCustom ratesUp to $1,000,000Visit CoreFund Capital
FundboxStarts at 4.66%Up to $100,000Visit Fundbox
Lendio0.00% to 24.00%Up to $5,000,000Visit Lendio
Match FactorsCustom ratesUndisclosedVisit Match Factors
Orange Commercial Credit1.5% to 4%UndisclosedVisit Orange Commercial Credit
OTR CapitalCustom ratesUndisclosedVisit OTR Capital
Porter Freight FundingCustom ratesUndisclosedVisit Porter Freight Funding
Provident Commercial FinanceCustom ratesUndisclosedVisit Provident Commercial Finance
Tetra Capital0.95% - 3%UndisclosedVisit Tetra Capital
Thunder Funding2% to 4%UndisclosedVisit Thunder Funding
Universal Funding0.55% to 2%$25,000 to $5 millionVisit Universal Funding

ACS Factors

ACS Factors has been in business for six years, but its management team has over 40 years of experience in factoring services. It offers month-to-month factoring agreements with funding that’s available in 24 hours or less. It offers non-recourse financing so trucking firms don’t have to chase down payments for loads, and the access to capital increases as their businesses grow.

ACS Factors makes advance cash on receivables available for companies anywhere in the U.S., and it delivers payments to trucking companies via ACH, wire or fuel card funding. The fuel card provided comes with discounts for drivers. Free online credit checks of clients offering loads are provided by ACS Factors, with immediate approvals if qualifications are met.

Trucking companies and drivers have 24/7 online access to ACS Factors accounts, as well as free credit checking 24/7 for new clients. With this company, there are no minimums, no term contracts and no termination fees or yearly conditions.

Funding AmountInterest RatesFeatures
UndisclosedCustom Rates>Factoring Agreements: Month-to-month
>Time to Fund: 24 hours
>Min. Qualifications: Contact ACS Factors

Pros & Cons of ACS Factors
Customers can fill out the one-page application for factoring services and receive an answer, typically within hours. Once approved, funding is fast, within 24 hours, with month-to-month factoring agreements. ACS Factors offers non-recourse factoring, so it handles collections on behalf of the trucking firms it serves. To get specific details, however, trucking companies must contact the company, which may be a drawback when in a hurry because not many specifics are published on the website for easy review.

>Fast funding
>Non-recourse factoring
>Terms and qualifications aren’t online

What Customers Are Saying
Customers appreciate the customer service, access to capital at reasonable fees and help with collections provided by ACS Factors. One long-term ACS Factors customer said, “I have been working with ACS Factors for almost a year. They have been easy to work with and have helped my business significantly with cash flow without charging exorbitant fees. I have worked with other factoring companies in the past but by far this company has exceeded my expectations! I highly recommend them and they also help on the collection end.”


BlueVine is a small business lender offering business checking accounts, business credit lines and invoice factoring. The factoring lines this company offers are available in amounts up to $5,000,000, and funds may be available in a trucking firm’s account in between 12 and 24 hours.

These factoring lines have 6 to 12 month repayment terms. However, there are no recurring payments as long as the clients pay the invoices. This company also offers non-recourse financing, meaning BlueVine collects on invoices so trucking firms don’t have to spend time on that task.

When invoice factoring with BlueVine, the owner of the trucking company retains control over which invoices to factor. Trucking firms must be in business for a minimum of six months to become eligible for factoring through BlueVine. It’s also required that a borrower have a minimum of $10,000 in monthly revenue to qualify for invoice factoring with BlueVine.

Funding AmountInterest RatesFeatures
Up to $5,000,000Line of Credit Flex6: 0.3% to 1.5% per week
Line of Credit Flex12: 1.5% to 6.5% per month
Discount rate of 0.3% to 1.1% per week for Invoice Factoring

>Loan Term: 6 or 12 months
>Time to Fund: 12-24 hours
>Nonrecourse financing
>More features at BlueVine

Pros & Cons of BlueVine
BlueVine offers fast funding that’s delivered within 12 to 24 hours of applying, and high factoring lines of up to $5 million. BlueVine also handles collecting on invoices from end clients so trucking firms can focus on delivering loads instead of managing details, such as the collection of payments.

Pros Cons
>High loan amounts
>Non-recourse financing
>Minimum $10,000 in monthly revenue

What Customers Are Saying
Customers value the fast funding and easy access to capital offered by BlueVine. One customer said, “When you run a business like ours, you need the extra cash for backup. I tried our bank and went through all the trouble just to be told we had to wait. BlueVine has been a great partner to us and I personally cannot be more grateful.”

CoreFund Capital

CoreFund Capital provides financial services for businesses and specializes in invoice factoring. It also has a dispatch service that sets up loads so drivers can keep moving and earning. This company has Saturday hours and extended funding times to accommodate trucking firms that deliver on weekends.

CoreFund Capital pays the same day loads are delivered and has full advance options that pay the full amounts shown on invoices. In addition to serving the trucking industry, CoreFund Capital serves factoring needs for the oil and gas industry and the factoring needs of staffing agencies.

Firms that factor with CoreFund Capital gain 24/7 access to online accounts and a discount fuel card that helps with cost-cutting measures. CoreFund serves companies of all sizes, including start-ups that may have trouble gaining access to capital at some other factoring firms.

Funding AmountInterest RatesFeatures
Up to $1,000,000Custom Rates>Loan Term: 90 days
>Time to Fund: 24 hours
>Min. Qualifications: Contact CoreFund Capital

Pros & Cons of CoreFund Capital
CoreFund Capital offers fast funding, typically the same day the job is completed. The company also offers high loan amounts of up to $1 million, and non-recourse financing lets trucking firms pass the responsibility for collecting on invoices to CoreFund Capital. CoreFund may have slightly higher rates than some other factoring services.

>Fast funding
>High loan amounts
>Slightly higher rates

What Customers Are Saying
Customers love the friendly, professional service provided by CoreFund staff members. One customer described it this way: “I am extremely happy with the service that CoreFund provides. At one point, I had considered going with another factoring firm. They were offering a half a percent decrease in my existing rate. I realized I was not willing to part with the exemplary service that I was receiving from CoreFund.”


Fundbox is a small business lender that uses technology to offer companies of different sizes access to capital. Loans are offered in amounts up to $100,000, with rates that begin at 4.66%. Repayment terms begin at 12 months and go up to 24 months. The personal minimum credit score for borrowers is 500. Companies must be in business for a minimum of three months and have an annual revenue of $25,000.

Fundbox offers next-day funding for invoice factoring clients, and funding may take up to three days for customers applying for business credit lines. Fundbox offers some third-party integrations, and it does not offer non-recourse financing.

Funding AmountInterest RatesFeatures
Up to $100,000Starts at 4.66%>Loan Term: 12-24 months
>Time to Fund: Next day
>Min. Qualifications: Annual revenue - $25,000,
Personal credit score - 500, Time in business - 3 months
>More features at Fundbox

Pros & Cons of Fundbox
Fundbox has a quick turnaround time for depositing money in customer checking accounts. Fairly high loan amounts of up to $100,000 are available from this company. Interest rates for Fundbox clients are also low, helping to make factoring affordable. Only recourse loans are offered by Fundbox, so trucking companies are responsible for managing client invoices.

>Fast funding
>Low interest rates
>Recourse loans only
>Min. qualifications may be difficult for some

What Customers Are Saying
Customers love the friendly service and ease of acquiring funding through Fundbox, as well as the fast turnaround time on receiving funding. One satisfied customer said. “During the busy season, it’s crucial that we have cash in our hands on time. Fundbox makes that possible.”


Lendio provides access to small business financing and arranges offers on loans up to $5,000,000. Rates on these loans range from 0.00% to 24.00%, depending on each individual borrower’s credit score. Borrowers must have at least $50,000 annual revenue and a credit score of 560 or higher. Non-recourse financing is not an option with Lendio, so trucking companies must pursue collection on receivables with no help from Lendio.

Lendio makes tools and staff members available to borrowers to help with decision-making regarding amounts to borrow and which specific lender to choose. Tools include a variety of loan calculators where customers move sliders to select different loan amounts, interest rates and number of months to repay. Funding managers discuss options and explain terms to help borrowers choose the best factoring option.

Terms of up to 25 years are available for borrowers, and after approval it may take as little as 24 hours to receive funding.

Funding AmountInterest RatesFeatures
Up to $5,000,0000.00% to 24.00%>Loan Term: Up to 25 years
>Time to Fund: 24 hours
>Min. Qualifications: $50,000 annual revenue, 560 credit score
>More features at Lendio

Pros & Cons of Lendio
Lendio provides fast funding after approval and also gives borrowers access to fairly high loan amounts. It provides long-term loans to qualified borrowers, but it does not offer non-recourse financing, so trucking companies must pursue collection on invoices instead of it being handled by Lendio.

Pros Cons
>Fast funding
>Long-term loans
>Recourse loans only
>Min. qualifications may be difficult for some

What Customers Are Saying
Customers like the professional, efficient customer service provided by the staff members at Lendio. They also appreciate the quick turnaround time from applying to receiving funding. One customer said, “Lendio helped my business when we needed them the most. Customer service is amazing, and turnaround time for funding was very fast. We will continue to recommend Lendio to everyone when we have the opportunity. Thank you for helping us during these uncertain times!!”

Match Factors

Match Factors has been serving the factoring needs of trucking firms for over 32 years. It offers non-recourse financing, so trucking firm owners don’t have to manage collecting receivables invoices. It approves 95% or more of invoice amounts, using a flat fee system rather than interest rates, and there are no hidden fees.

There are no monthly volume conditions when factoring with Match Factors, and funding is provided with 24 hours of approval, usually the same day. Staff members provide personal service. Match Factors also provides drivers with fuel discount cards.

There are no long-term contracts when factoring with Match Factors, and borrowers get free online account access that can be checked any time. The online account access also provides a way to submit invoices, though trucking companies may submit invoices by fax or email if preferred.

Funding AmountInterest RatesFeatures
UndisclosedCustom Rates>Loan Term: Custom
>Time to Fund: 24 hours
>Min. Qualifications: Contact Match Factors

Pros & Cons of Match Factors
Match Factors is an established company that offers non-recourse financing for trucking firms. It also offers fast funding after approval and has a reputation for having friendly staff members. To determine rates, loan amounts and terms of financing, trucking firms must either contact the company with questions or fill out an application form as not much information is provided on the company website.

>Fast funding >Non-recourse loans>Must apply to learn rates and terms

What Customers Are Saying
Customers describe Match Factors as a company with friendly staff members and a family-like vibe. Customers also appreciate the professionalism of the staff members. One customer noted that, “After dealing with one of the ‘big guys’ for just a short amount of time, I was really not happy with my factoring experience. After just a few phone calls with Match Factors, my mind was put at ease. Everyone at Match Factors has been helpful, professional, knowledgeable and friendly. This is not something that you find anywhere in this industry. I’m thankful that I found Match Factors when I did, and I’m happy to have them on my team!”

Orange Commercial Credit

Orange Commercial Credit has been in the truck factoring business since 1979. It offers business credit and finance to provide company owners with capital to operate their businesses. The amounts it advances to trucking firms amount to between 85% and 97% of invoice amounts, and there are no upfront fees or hidden fees.

Same-day funding puts cash in the trucking firm’s account without long delays, and lending solutions are custom-built for each client. Dedicated Orange Commercial Credit account executives work with clients, so company owners get to know the person who manages their factoring account.

No minimum amounts are established, so trucking firm owners get to choose which customers and which invoices to factor, and 24/7 online access is in place to make it easy for drivers to submit invoices and review online reports. Orange Commercial Credit does not offer non-recourse factoring but works with the clients of a trucking firm to support on-time payment so trucking firms don’t have to buy back the invoices that were factored.

Funding AmountInterest RatesFeatures
Undisclosed1.5% to 4%>Loan Term: Custom
>Time to Fund: 24 hours
>Min. Qualifications: Contact Orange Commercial Credit

Pros & Cons of Orange Commercial Credit
Orange Commercial Credit provides trucking companies with fast access to funds. It charges no upfront fees and offers low interest rates to borrowers who request invoice factoring. It offers only recourse loans, though does offer some support in working with a trucking firm’s clients.

>Low interest rates
>No upfront fees
>Recourse loans only
>Qualifications and terms aren’t listed online

What Customers Are Saying
Customers value the way Orange Commercial Credit provides the capital needed to grow a business. One long-term customer of Orange Commercial Credit said, “I would like to personally thank OCC for over 8 years of factoring support. Factoring has been instrumental in helping us grow and expand our business without any cash flow disruptions. We look forward to the continued stability factoring provides and highly recommend Orange Commercial Credit to whom are considering factoring.”

OTR Capital

OTR Capital offers both non-recourse and recourse factoring programs, that can be customized to fit the exact needs of businesses. Both of these programs offer competitive flat rates, that are structured according to the needs of each business they work with. Funding from OTR Capital is delivered same day via ACH or Wire, or in minutes through their in-house BOLT platform.

There are no long-term contracts, no hidden fees, or monthly requirements with this company. It provides an instant cash infusion to help trucking firms maintain a positive cash flow and keep businesses operating. Fuel advances of up to 50% of the invoice amount may be loaded to discount fuel cards or comchecks at the company owner’s discretion.

Funding AmountInterest RatesFeatures
UndisclosedCustom Rates>Loan Term: Custom
>Time to Fund: Within Minutes
>Min. Qualifications: Contact OTR Capital

Pros & Cons of OTR Capital
OTR Capital offers fast funding for invoice factoring customers. It also offers low interest rates for both recourse financing, which is discounted, and non-recourse financing. To learn specific loan amounts that are offered and terms, trucking company owners must contact an OTR Capital representative or fill out the online application.

>Fast funding
>Both recourse and non-recourse loans available
>Must contact for loan amounts and terms

What Customers Are Saying
Customers appreciate knowing invoices are going to be paid quickly and like that a customer service representative answers when they call OTR Capital. One customer said, “We have worked with OTR Capital for the past 3 years. Having the confidence that your invoices will be paid next day is a pleasure and knowing that you’re calling their office and your call will be answered. OTR Capital as a factoring company for our business is a pillar as cash flow for our drivers. I recommend their business to all the trucking companies looking to work with people that care and respect your business. As an owner of a trucking company and dealing with a market that is variable, working with OTR Capital and checking each broker gives you a peace of mind knowing you are working with somebody that will make sure you get paid.”

Porter Freight Funding

Porter Freight Funding is a truck factoring firm that has been serving the financial needs of trucking companies for over 25 years. It offers freight factoring, dispatching, fuel cards, insurance and compliance help. No long-term contracts are required by this company, and it offers month-to-month terms, six-month terms and yearly terms.

Porter Freight Funding has a large list of pre-approved brokers and shippers, and it offers free credit checks on brokers on behalf of trucking companies to help ensure reliable payment. There are no minimum factoring requirements for companies that have one or two trucks, and it serves both large and small companies.

There are no hidden terms or fees in the contracts and Porter Freight offers both recourse and non-recourse factoring programs. All clients work with a personal client representative to help all business needs. Funding is provided within 24 hours on all invoices submitted.

Funding AmountInterest RatesFeatures
UndisclosedCustom Rates>Loan Term: Yearly, 6 months, or month-to-month
>Time to Fund: 24 hours
>Min. Qualifications: No minimum factoring requirement (on 1-2 trucks)
>More features at Porter Freight Funding

Pros & Cons of Porter Freight Funding
Invoice factoring with Porter Freight Funding offers trucking companies quick access to working capital. It doesn’t require long-term contracts, and it offers both recourse and non-recourse factoring options. Porter Freight Funding has a broad range of partners that connect carriers with services including but not limited to fuel cards, ELD discounts, trucking insurance, benefits, compliance and much more. Maximum loan amounts and rates are not published on the company website, so interested trucking firm owners must contact the company or submit the online application to get precise details.

>Fast funding
>Short- and mid-term loan options
>Max loan amounts and rates not provided

What Customers Are Saying
Customers like the friendly communication provided by Porter Freight Funding staff members and the ease of setting up an account with this company. One customer said, “I have to say that working with Porter was one of the best decisions I have made for my company. Setup is easy and they keep an open line of communication throughout the process. They are always super helpful, always in a good mood and always willing to answer every question no matter how many times you have asked it. Their online portal is easy to use and if you have troubles they are just a friendly phone call away. I would recommend them to everyone who is looking for a factoring company.”

Provident Commercial Finance

Provident Commercial Finance offers factoring as a small business funding option for trucking companies. Funds are made available within 24 hours of approval. It provides 80% to 90% of outstanding accounts receivable as funds for truckers, with the remaining amount — after the factoring fee is deducted — sent to the trucking firm after the invoice has been paid by the trucking firm’s client.

Provident Commercial Finance looks at the credit of the companies that owe trucking firms rather than the trucking firm owner’s credit rating. In doing this, it provides working capital for growth.

Trucking companies choose which invoices to factor, and the factoring line available is based on the amount of receivables and not the hard assets of the trucking firm. It also outsources billing so trucking firms don’t have to do it.

Funding AmountInterest RatesFeatures
UndisclosedCustom Rates>Loan Term: Custom
>Time to Fund: Not Provided
>Min. Qualifications: Contact Provident Commercial Finance

Pros & Cons of Provident Commercial Finance
Provident Commercial Finance makes very little information about rates, maximum loan amounts or terms available on the website, but it has a reputation for providing liquid cash flow through invoice factoring. It makes applying easy by sharing an online application form, so trucking company owners who want to explore funding options through this company can quickly navigate the process.

>Provides liquid cash flow
>Online application
>Very little information is available online

What Customers Are Saying
Customers love the financial support provided by factoring through Provident Commercial Finance as well as the expert advice provided by staff members. One customer mentioned that “Not only does Provident provide us financial support through Accounts Receivable Financing and other custom-tailored solutions, but they also serve as an asset to our team by providing us advice and guidance on various situations that we encounter in our day-to-day. Provident has been critical to our company’s success and we highly recommend their services.”

Tetra Capital


Tetra Capital provides invoice factoring and freight bill factoring services. They take care of running credit checks on new customers for trucking companies, handling invoicing, and they help trucking firms cut costs by collecting quickly on factored invoices. Their application process takes less than 5 days, and it’s up to trucking company owners which invoices they want to factor.

Tetra Capital provides funding based on scanned and faxed invoice copies, which allows trucking firms to receive funds faster than if hard copies were required. No long-term contracts are required, and there are no hidden fees including an application or termination fee.

Trucking companies have access to Tetra Capital’s online system after the initial setup period, making it possible to check invoices and shorten collection periods. There are also options to get fuel advances, fuel card discounts and discounts on tires, maintenance and other drivers’ needs.

Funding AmountInterest RatesFeatures
Custom based off need 0.95% - 3%>Loan Term: Custom
>Time to Fund: Same day
>Min. Qualifications: Contact Tetra Capital

Pros & Cons of Tetra Capital
Tetra Capital offers fast funding that frees up working capital and provides funds for immediate needs, such as fuel and repairs. It offers funding on invoices so trucking companies don’t have to wait to be paid or manage collecting from clients. Funding is available to owner-operators and small fleets that are just starting out and those that are well established. With collection rates 2-3 days faster than the industry average, they have been able to save carriers money.

>Fast funding
>No application or termination fee
>Free credit checks on brokers and shippers
>Must contact for loan amounts and terms

What Customers Are Saying
Customers appreciate the speed with which Tetra Capital processes invoices and gets funds deposited into accounts. One pleased customer said, “Tetra Capital’s processing time of invoices is outstanding!”

Thunder Funding

Thunder Funding has been in business since 2013, serving the funding needs of trucking companies. It offers rates ranging between 2% and 4% with 90-day loan terms. It also offers transparent pricing with no hidden fees and funding within 24 hours of approval.

No long-term contracts are requested by Thunder Funding, and credit approval is based on the shipper’s or broker’s credit rather than the trucking firm’s credit. This provides company owners who have less than stellar credit with the same access to financing that other companies get.

Thunder Funding specializes in serving the freight industry with non-recourse funding and serves both small and large trucking firms. Free fuel cards with industry discounts attached are available to clients, along with a load board to help truckers with finding loads.

Funding AmountInterest RatesFeatures
Undisclosed2% to 4%>Loan Term: 90 days, short-term agreements
>Time to Fund: 24 hours
>Min. Qualifications: Contact Thunder Funding

Pros & Cons of Thunder Funding
Thunder Funding serves the invoice factoring needs of trucking companies by providing fast funding, usually in 24 hours or less. It also provides a low rate funding option, with rates ranging from 2% to 4%. Only short-term financing is offered, which may be harder to manage for some trucking companies that need extended repayment terms.

>Fast funding
>Low rates
>Short-term funding only

What Customers Are Saying
Customers like the friendly, professional service provided by the Thunder Funding staff members. One pleased customer said, “There’s no question. Thunder Funding is far and away the best factoring company I have worked with. I refer them to everyone!”

Universal Funding


Universal Funding is a private, family-owned invoice factoring company that offers your business a personalized funding experience specifically designed for your unique needs.

They have funded thousands of small to mid-sized trucking companies, totaling more than $2 billion in funding since 1998. Universal Funding turns your accounts receivable into the funding you need through invoice factoring and can have capital in your hands in a matter of days.

Funding AmountInterest RatesFeatures
$25,000 to $5 million0.55% to 2%>Loan Term: 12-24 months
>Time to Fund: 24 hours
>Min. Qualifications: $25,000 in invoice volume per month
>More features at Universal Funding

Pros & Cons of Universal Funding
Universal Funding provides funds quickly, so trucking companies have access to needed funds the same day as approval. It also provides loans with low interest rates of between 2% and 4%, and it has a wide range of funding amounts available to accommodate the needs of both large and small companies.

>Fast funding
>Low interest rates
>Range of loan amounts
>Recourse loans only

What Customers Are Saying
Customers appreciate the transparency and the fact that there are no hidden fees and no extra charges when factoring with Universal Funding. One customer mentioned his experience with Universal Funding by saying, “From the beginning they are very transparent. There has not been any tricks or gimmicks or extra charges. Our rep has been the most helpful and we are very thankful.”

What Is Trucking Factoring?

Truck factoring is a financing service provided to freight hauling firms based on the value of invoices the firms receive in exchange for delivering goods. These lending agencies offer a variety of terms and financing amounts, based on details such as recourse or non-recourse financing and creditworthiness of the trucking firm’s clients.

These factoring firms typically take advantage of modern technologies, so trucking companies can apply and submit invoices for factoring over the internet, using email or faxes. Many factoring firms also provide a dedicated representative who gets to know the truckers who contact them, making it easier and faster to complete funding processes.

Factoring plays an important role in the nation’s transportation industry, which is responsible for the movement of trillions of dollars’ worth of goods annually. Factoring works by providing a cash flow source when a company would otherwise be left sitting until invoices were paid, which can take months. By keeping the cash flowing through a trucking company’s accounts, it helps keep the trucks rolling.

Factoring is a flexible funding source, and the only funding source that isn’t linked to the credit score of the company owner and that grows along with the sales a trucking company makes by delivering each load.

Benefits of Trucking Factoring 

The first two benefits of truck factoring are linked to creditworthiness and gaining access to capital that wouldn’t be offered through traditional lending facilities.

Easy Access to Capital: Truck factoring provides a company with access to capital with less stringent credit requirements than a bank would require. This is because the approvals are based upon invoices and factors other than the trucking firm owner’s credit scores.

Looks at Broker’s or End Client’s Credit: Invoice factoring firms typically look at the creditworthiness of the end client or broker rather than the trucking firm owner’s credit rating. If the trucking company’s owner has had any credit challenges, this is beneficial because it allows the company to gain working capital that wouldn’t be available otherwise.

Money-Saving Opportunities: Invoice factoring firms that serve the trucking industry know how important it is for trucking firms to cut costs whenever possible, and fuel discount cards are normal parts of the offerings for many of the factoring companies. Funds can be put on fuel cards that provide a variety of discounts to truckers, such as repair discounts and fuel discounts

Expediency: When the need for working capital is urgent, invoice factoring companies offer a fast solution. Funding is typically faster than applying for a bank loan, allowing companies to have access to capital that’s needed to keep the trucks rolling and to allow a company to expand.

Must-Have Features for Trucking Factoring Companies

The interest rates and loan terms of invoice factoring are the first considerations when choosing a factoring firm. The loan sizes each firm offers are also important. For example, if a company needs access to a large amount to scale growth upward and a given factoring firm only offers smaller amounts, that firm may not be an ideal fit for the trucking firm.

Recourse and non-recourse factoring are two types of invoice factoring a trucking firm needs to know about when choosing a factoring company. With recourse factoring, the trucking firm remains responsible for the debt even if the broker or client doesn’t pay. This type of funding may have lower fees than non-recourse factoring because the trucking firm is left to manage the collections on invoices. Non-recourse factoring may have higher fees because the factoring firm manages the back-office work on behalf of the trucking firm, billing brokers and clients for them.

Qualification requirements are another important consideration when choosing a firm to factor invoices. Details such as minimum credit score, annual revenue and length of time in business may disqualify a trucking firm from working with some factoring agencies.

Fast time to receive funding is the final must-have feature for a truck factoring company. If a company were to be slow in providing funding, for example, it might cause the trucking firm to be left sitting while waiting on funds for fuel or repairs instead of moving freight.

The Cost of Trucking Factoring 

The cost of truck factoring is typically based on details such as the length of time a trucking firm has been in business, the credit score of the company’s owner and the policies of the factoring firm. For example, some companies may offer rates as low as 0.00% or 0.5% to borrowers who have pristine credit.

The length of the loan term may also affect the rates, with long-term financing costing a much higher percentage rate than the amount that’s charged for an invoice that’s factored on a month-by-month or even a weekly basis.

Recourse and non-recourse factoring costs are also typically charged differently by factoring firms, with non-recourse invoice factoring charging a percentage and recourse factoring charging a flat fee or a flat fee combined with a percentage.

Many factoring companies don’t have factoring rates published on the company websites, instead encouraging potential customers to contact company representatives or fill out an online application to get more details. Of the companies that do publish this data, it ranges from as low as 0.00% from Lendio, which requires a credit score of 560 or above, up to 24.0%, which is also from Lendio.