Factoring
Scottsdale-based freight factoring company, now part of Gulf Coast Bank & Trust, offering non-recourse factoring, fuel advances, an EFS fuel card and month-to-month contracts.
Freight Factoring Companies
Freight factoring turns eligible invoices into earlier cash through a receivables purchase agreement. Compare the funding terms and the complete contract rather than focusing only on the advertised fee.
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OTR Solutions
Roswell, GA
Roswell, Georgia freight finance company, formerly OTR Capital, offering recourse and non-recourse factoring with instant 24/7 funding, fuel cards and payment tools for brokers.
Apex Capital
Fort Worth, TX
Fort Worth factoring company founded in 1995 that funds trucking companies and freight brokers, with blynk instant payments, a fuel discount program and a startup program for new carriers.
RTS Financial
Overland Park, KS
Overland Park, Kansas factoring and fuel card provider for trucking companies, part of the Shamrock Family of Brands, advancing more than 90 percent of invoices within 24 hours.
TAFS (now part of eCapital)
Miami, FL
TAFS, the Kansas trucking factor, was acquired by eCapital in 2024 and tafs.com now forwards to eCapital, which offers recourse and non-recourse freight factoring and a fuel program.
Triumph
Dallas, TX
Dallas-based Triumph, part of Nasdaq-listed Triumph Financial, offers carrier factoring with no minimums or reserves, non-recourse options and payment in minutes to a LoadPay account.
Porter Freight Funding
Birmingham, AL
Birmingham, Alabama freight factoring division of Porter Capital offering same-day funding, recourse and non-recourse options, 24/7 fuel advances through PorterWallet and a fuel card.
Factoring company founded in 1969 that offers non-recourse freight factoring with up to 95 percent advances, customer credit checks, collections and a fuel card, with offices across North America.
Bobtail
Silver Spring, MD
Maryland-based trucking factoring company with a published maximum rate, no reserves or monthly minimums, a 90-day trial period and the Bobtail Mastercard fleet card.
Thunder Funding
Carlsbad, CA
Carlsbad, California freight factoring company offering non-recourse factoring by default, fuel advances seven days a week, a fuel card and short 90-day initial agreements.
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Factoring: Buyer’s Guide
What factoring is and who uses it
Factoring involves selling eligible accounts receivable to a factor instead of waiting for the customer to pay you directly. The factor advances an agreed portion and handles payment according to the contract. Carriers may use it to cover operating expenses while freight bills remain unpaid, and brokers may consider it when customer payment timing differs from obligations to carriers. It is a financing choice, not evidence that a business is profitable or that every invoice will qualify. Understand how the arrangement changes billing, collections and communication with your customers.
Map the workflow before signing. Ask who submits invoices, what shipment documents are required and when an invoice is considered accepted for funding. Confirm whether the customer receives a notice of assignment and where payments must go. Your staff should know how to handle a payment sent to the wrong place or a customer disputing a charge. Compare factoring with your current cash flow process and other available financing options. The usefulness of earlier funding depends on your business's obligations, recordkeeping and ability to follow the agreement.
Recourse and non-recourse need careful reading
With recourse factoring, the business may have to buy back an invoice or otherwise repay the factor when the customer does not pay under the agreed conditions. Ask when that obligation begins and how it is collected. A chargeback can reduce funding from later invoices or create another payment obligation. Make sure you understand what happens when the customer is simply late, raises a freight claim or contests the paperwork. The practical effect is more important than the label used in a sales conversation.
Non-recourse does not necessarily cover every reason for nonpayment. It may address a defined customer credit event while leaving disputes, offsets, fraud or documentation problems with your business. Request a written list of covered and excluded situations. Ask who decides whether an invoice qualifies for protection and what evidence is required. Read the definitions and any separate credit policy together with the main contract. Do not assume that accepting an invoice for funding means the factor has accepted every risk connected with that shipment.
Advance rates and reserves
The advance rate is the portion of an eligible invoice paid before the customer settles it. A reserve is the amount held back under the agreement. Ask when the reserve is released, what deductions can be made and whether reserves are tracked invoice by invoice or across the account. A high advance alone does not explain the final proceeds. Fees, adjustments and chargebacks can affect what you ultimately receive. Have the factor walk through a sample invoice using your own proposed terms rather than an example that omits common deductions.
Ask how short payments, accessorial disputes and customer credits affect the reserve. Find out whether the factor can retain funds after you stop submitting invoices and how you obtain a final account reconciliation. Your accounting process should distinguish the invoice value, the advance, the reserve, the fees and the eventual settlement. Reconcile those items with the customer's payment records. This makes it easier to spot errors and understand whether delayed reserve releases are a normal contractual step or a problem requiring follow-up.
Flat fees, tiered fees and additional charges
A flat fee generally applies a stated charge to an invoice under specified terms. A tiered fee can change as the invoice remains unpaid or as another condition is met. Ask when the clock begins, when a new tier starts and whether partial payments affect the calculation. The words flat and tiered are not enough to compare offers without the actual definitions. Use realistic customer payment timing when estimating cost, including the possibility of a slower payment than you expect. Check whether any quoted rate depends on volume or exclusivity.
Look for transfer fees, per-invoice fees, monthly minimums and termination fees. Ask about charges for submitting documents, credit checks or services you might not use. Confirm whether fees come out of the initial advance or the later reserve release. The Factoring Fee Calculator can help compare net proceeds using the terms entered, but it cannot identify fees missing from your contract review. Request a complete fee schedule and a written explanation of what happens when activity falls below the agreed minimum or when a customer pays late.
Contract length and getting out of the agreement
Read the contract term, renewal language and cancellation procedure before committing. Ask how notice must be given, what deadline applies and whether the agreement renews automatically. Understand any minimum activity commitment and whether all eligible invoices must be submitted. An agreement that seems convenient during growth can become restrictive when your customer mix or operating plans change. Ask what happens if you sell the business, stop hauling or want to move to another factor. Do not rely on a verbal promise that cancellation is simple.
Exit terms may involve paying outstanding obligations, resolving reserves and obtaining releases connected with receivables. Ask who communicates with customers during the transition and when they may redirect payments. Find out what documents a new financing provider would need. Keep the original contract and amendments organized so you can review notice requirements before making a change. The ability to leave without operational confusion matters alongside price, because billing interruptions or conflicting payment instructions can create disputes even when the underlying freight work was completed correctly.
Customer approvals, extras and questions before signing
Factors often evaluate brokers and shippers before approving invoices for funding. Ask whether approval applies to the customer generally or to a specific amount and shipment. Find out how quickly you are told when a customer's status changes and who bears the risk of hauling after an approval has expired or been withdrawn. Check whether you can request approval before accepting a load. Customer credit decisions should be part of your dispatch and billing process rather than something discovered only when an invoice is submitted.
Fuel cards and related services may be useful, but compare their separate conditions, fees and restrictions. Ask whether using an extra product changes your factoring obligations or cancellation options. Before signing, request a complete invoice-to-payment walkthrough, the recourse rules, the reserve policy and the exit process. Confirm who will support your staff and how errors are corrected. Use your own customer mix and likely payment patterns when comparing proposals. A clear written agreement is more valuable than an attractive feature list that leaves important responsibilities unexplained. This guide is general information, not legal, financial or insurance advice.
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