Factoring Company for Trucking Owner Operators - Top 5

It cannot be easy to find the right freight factoring company. We've compiled the top five options to help you choose the right freight factoring company.

Truckers must make a crucial decision about whether to factor their loads and, if so, which factoring company they should choose. Factoring is a great way to reap the many benefits. First, however, it's important to make sure that you work with a company that suits your needs.

It is important to understand freight factoring basics before deciding which partner you want to work with.

What is Freight Factoring?

Freight factoring is when an individual or company that delivers a load of freight sells their invoices to a factoring firm. The factoring company collects a small percentage and pays the carrier within 24 hours. This means that you can get the money you earned immediately instead of waiting for a broker or month to pay your invoice.

Factoring is not lending. This is the most important thing to remember. Factoring companies buy your invoice and take over responsibility. Factoring allows you to be paid immediately without the need to borrow money or take on debt to access the money.

The Guide to Choosing Freight Factoring Companies

There are many freight factoring options available. It is important to know what you should look for when comparing top factoring companies for trucking.

Trustworthiness and reliability are the most important things to look at. This can be determined by reviewing TrustPilot ratings, TrustBBB(r) ratings, and customer reviews. This will help you ensure you are working with a reliable factoring company. It also gives you an insight into the experiences of other carriers with the company.

Simplicity is another aspect to be considered. Factoring allows you to get paid quickly and without any waiting. You must find a company that makes selling your invoice easy. You should also take a look at what factoring rates each company offers. Some companies will take a higher percentage of your invoice than others, but they don't offer any benefits that would make it worthwhile.

It would help if you also considered the company's customer support. There are times when issues arise. For example, will your factoring company be able to assist you immediately, or will they keep you waiting for hours? Reading customer reviews can give you an idea of a factoring firm's service quality.

Best Factoring Companies For Truckers

1. OTR Capital

OTR Capital is a transportation-focused factoring company offering same-day payment on recourse and non-recourse programs accompanied by complete back-office support. The invoice factoring system provides brokers and carriers with seamless billing and collection. This allows you to spend less time dealing with payment processing and more time making money.

OTR Capital offers a non-recourse factoring service. You will have an unforgettable experience thanks to the unique features and benefits offered by OTR Capital.

• There are no chargebacks for cleanly delivered loads, even if they arrive after 90 days.
• There are no credit limits, volume limits, or monthly minimums
• Flat factoring rates that are reliable and transparent with no hidden fees.
• You can easily invoice online through our client portal or on your smartphone with the OTR Capital mobile application
• Pay your invoices quickly with OTR BOLT, wire transfer, or ACH.
• A dedicated account manager will handle all your cash flow and back-office requirements
• Factoring programs that are customized to your business



OTR Capital offers one more perk to anyone who uses the DAT load board. OTR Capital approves clients when you see a checkmark next to their load on the DAT board. This indicates that you can factor in the invoice with no problems.

2. Porter Freight Funding

Porter Freight Funding was founded in 2011 and helps trucking companies of any size to get consistent cash flow. Porter Freight Funding provides flexible factoring services that are not tied to long-term contracts and have no long-term commitments. It also offers a dispatching network of pre-approved shippers and brokers. You also get discounts and advances on fuel cards, as well as benefits from Porter Freight Funding.



Like many other companies on this page, Porter has received overwhelmingly positive reviews. Customers especially appreciate that each client is assigned a personal representative who takes time to understand their needs and goals.

Porter also offers:

• Recourse factoring and non-recourse
• Free fuel cards
• Insurance quotes
• Assistance with compliance
• Asset-based lending and AR funding
• A simple dispatching network

3. RTS Financial

RTS is another option for truckers looking for high-quality freight factoring and other services that can help them succeed, like fuel cards. RTS is well-known for its competitive rates and excellent customer service. In addition, RTS offers simple-to-use software to help you manage different aspects of your business.

RTS Financial offers the following key services:

• You can pay up to 97 percent upfront of the invoice value
• Non-recourse factoring
• A large credit line is required to fuel a fuel card program
• Leasing equipment
• Software for trucking
• Contactable customer support via email or phone and chat
• Intuitive mobile app

RTS receives a lot of positive feedback from customers. Customers often praise RTS for its fast payments and low rates. They also love the RTS app, which allows them to check the status of loads and process them.



RTS has one problem. You can't apply online for the service. This is a difference from the majority of companies on this list. Instead, you will need to speak with a representative to discuss your options. This can be frustrating for many people, making RTS a poor solution.

4. Apex Capital Corp

Apex was established in 1995 and is one of the longest-standing freight factoring companies. Apex is a top-rated factoring option, focusing on transparency and providing quality service that keeps users up-to-date about their invoices.

Apex's customer feedback is mostly positive. Customers praise the speed at which they receive their invoices and the professionalism of their account managers. This can be especially helpful for new carriers, who may not have the experience or knowledge to advocate for their company and grow their business.

Apex is known for its outstanding customer service and a variety of other highlights, including:

• Recourse factoring and non-recourse
• Flat rate of 2 percent on invoices already paid
• Minimum monthly volumes are free of charge
• There are no termination fees or hidden charges
• Credit checks are free
• Fuel card discounts
• Access to Apex's Online Account Management Portal (AMP), conveniently from your computer
• Mobile app



Apex has one drawback. While you are contracted with them, all invoices must be factored through the company. Apex doesn't allow you to pick which invoices are most financially sound to factor and which invoices you prefer not to pay the percentage.

5. Thunder Funding

Thunder Funding is a relatively new factoring company. However, that doesn't make it a bad choice for carriers. This company is focused entirely on freight, which makes it stand out. Thunder Funding was founded by truckers who know firsthand the frustrations of late invoice payments.

Thunder Funding is transparent and upfront. The company will send you a complete copy of the contract before signing any application. In addition, thunder Funding will give you a complete overview of its pricing before committing to anything.

Thunder Funding also offers:

• Non-recourse factoring
• Each invoice will be charged at 2-4 percent
• Instant funding
• Credit checks are free
• Fuel cards and fuel discounts
• Short-term, 90-day agreements

Thunder Funding's biggest drawback is its 2-4 percent rate, which is a little higher than the rest. However, it can be a great factoring option for many carriers.

The Top Factoring Company

There are many great options for freight factoring carriers. It is easy to become overwhelmed. However, doing your research will help you make informed decisions.

It doesn't matter if you compare the top five freight factoring companies or the top 10; one company always wins OTR Capital. OTR Capital is the industry leader and the most popular choice for public opinion. OTR Capital has received overwhelmingly positive feedback from customers, whether business owners or industry experts. OTR Capital is the best freight factoring company for your business. They are flexible, transparent, and trustworthy.

What Is a Factoring Company And How Can It Help My Business?

A factoring company in trucking is a financial service provider that offers trucking companies a way to receive payment for their freight bills sooner than the typical 30 to 60 days. In the trucking industry, freight bills are the invoices that trucking companies send to their clients for their services, such as hauling and delivering goods. The factoring company purchases these freight bills from the trucking company and advances the trucker a portion of the payment, typically within 24 hours.

Trucking companies often need help maintaining steady cash flow because of the long payment cycles. They have bills to pay, such as fuel, insurance, and maintenance, which can quickly add up. With the help of a factoring company, trucking companies can receive a lump sum of money upfront and don't have to wait for their clients to pay their freight bills. This allows trucking companies to cover their immediate expenses and focus on growing their business.

There are two types of factoring in the trucking industry: recourse and non-recourse. Recourse factoring means that if the client does not pay the freight bill, the factoring company will require the trucking company to repay the advance. Non-recourse factoring, on the other hand, absolves the trucking company of any responsibility if the client does not pay the freight bill. Non-recourse factoring is typically more expensive than recourse factoring, but it provides trucking companies with more protection and peace of mind.

Factoring companies also offer additional services, such as credit checks, collections, and accounting services. They can also help trucking companies manage their cash flow by providing accurate and up-to-date reports. In addition, by working with a factoring company, trucking companies can free up time and resources they would otherwise have to spend on accounting, collections, and credit checks.

It is important to choose a reputable and reliable factoring company, as many companies in the market offer factoring services at a high cost or with hidden fees. Therefore, trucking companies should thoroughly research the factoring companies they are considering and compare the fees, services, and reputation of each. They should also make sure to read the fine print and understand the terms and conditions of the contract before signing.



In conclusion, a factoring company in trucking is a valuable financial service provider for trucking companies looking to improve their cash flow and manage their expenses. By offering trucking companies quick access to funds and additional services such as credit checks, collections, and accounting, factoring companies can help truckers grow and become more successful. However, trucking companies need to choose a reputable and reliable factoring company and understand the terms and conditions of the contract before signing.