Get paid faster with the right factoring partner. We've tested and compared the top factoring companies to help owner-operators and small fleets maintain healthy cash flow.
By Small Fleet HQ | Published
| Provider | Best For | Rate | Advance | Rating | |
|---|---|---|---|---|---|
| Apex CapitalBest Customer Service | 24/7/365 funding including nights, weekends, and holidays | 1.5-3.5% | — | 4.6/ 5 | Check RatesMost carriers approved in 24 hrs |
| OTR SolutionsBest Overall | Genuine non-recourse factoring that absorbs broker non-payment risk | 3-4% | 96% | 4.7/ 5 | Check RatesMost carriers approved in 24 hrs |
| Thunder FundingBest Short-Term Contracts | 90-day contracts with zero termination fees | 2-5% | — | 4.3/ 5 | Check RatesMost carriers approved in 24 hrs |
| BobtailBest Fintech Option | Up to 100% advance rate with no reserve held | Up to 3.24% | 100% | 4.5/ 5 | Check RatesMost carriers approved in 24 hrs |
| eCapitalBest for Maximum Advance | Up to 100% advance rate on invoices | 1-3.5% | 100% | 4.2/ 5 | Check RatesMost carriers approved in 24 hrs |
*Featured prices and terms can be updated. Free offers may include additional terms.
Cash flow problems kill trucking companies. It's that simple. When shippers take 30, 60, or even 90 days to pay, you're stuck covering fuel, insurance, and payroll out of pocket. Factoring has become the go-to solution for carriers of all sizes, but picking the right factoring company? That's where a lot of truckers get burned.
I've seen owner-operators sign terrible contracts because they needed cash fast. I've watched small fleets bleed money to hidden fees they never saw coming. This guide exists because choosing a factoring partner shouldn't require a law degree.
Factoring is straightforward: you sell your unpaid invoices to a factoring company and get cash now instead of waiting weeks or months. The factor pays you most of the invoice value upfront, collects from your customer, then sends you the rest minus their fee.
Here's the typical process. You deliver a load and send your paperwork to the factor. They verify the delivery, check your customer's credit, and advance you somewhere between 90% and 97% of the invoice. When the broker or shipper finally pays, you get whatever's left after the factoring fee.
For a lot of truckers, this isn't a nice-to-have. Fuel doesn't wait for net-30 terms. Neither does your truck payment.
The specifics vary by company, but the basic workflow looks the same everywhere.
Submitting Invoices: After you drop a load, you send in your rate con, BOL, and invoice. Most factors have apps now so you can snap photos from your cab and submit on the spot.
Credit Checks: The factor checks whether your customer is good for the money. This is why factors care more about who you're hauling for than your own credit score. Some check before you book, others after delivery.
Getting Your Advance: Once they approve it, you get your money. Could be same day, could be next morning, depends on when you submit and which factor you're using.
Customer Pays: Your customer pays the factor directly on whatever terms they agreed to, usually net-30. The factor handles the follow-up if payment is late.
Getting Your Reserve: After your customer pays, the factor sends you what's left. Say you factored a $2,000 invoice at 95% with a 3% fee. You got $1,900 upfront. The customer pays $2,000, the factor takes their $60 fee, and you get the remaining $40.
Trucking hits you from every direction financially. Fuel prices swing week to week. Insurance keeps climbing. Equipment breaks at the worst possible time. Factoring addresses one specific problem: the gap between when you deliver and when you get paid.
If you're still on the fence, here's what factoring actually does for your operation.
Cash in Hand: You get paid in hours instead of months. That means covering expenses without raiding your savings or maxing out credit cards.
No Debt: You're not borrowing money. You're selling something you already own, which is the right to collect on an invoice. No loan payments, no interest stacking up.
Your Credit Doesn't Matter Much: Factors look at your customers' creditworthiness, not yours. New carriers and owner-operators with thin credit histories can usually qualify if they're hauling for decent brokers.
Someone Else Chases the Money: Collections become the factor's problem. You don't have to make awkward calls asking where your check is. Many factors also handle invoicing and basic accounting.
Non-Payment Protection: With non-recourse factoring, the factor eats the loss if your customer goes bankrupt. It costs more, but some carriers find that peace of mind worth paying for.
Fuel Discounts: Most trucking-specific factors offer fuel cards with per-gallon discounts. When you're burning 500 gallons a week, even small savings matter.
Owner-operators and small fleet owners don't have time to wait six weeks for banks to process loan applications. Factoring approval usually takes a day or two, sometimes less.
Factoring also scales with your business. Add a truck, hire a driver, take on a new customer, your factoring line grows with you. You're not stuck with a fixed credit limit that made sense a year ago but doesn't anymore.
For smaller operations, factoring provides back-office infrastructure you probably can't afford to build yourself. The reporting tools show you which customers pay fast and which ones drag their feet. That information changes how you book loads.
Every factoring company markets themselves as the best. Here's what actually matters.
Rates and Fees: Published rates usually run 1% to 5%, but that number doesn't tell the whole story. Is the rate flat or does it increase the longer the invoice stays unpaid? What about wire fees, minimum volume requirements, or monthly account charges? Get the full fee schedule before you sign anything.
Advance Percentage: Higher is better. The difference between 90% and 97% upfront is real money.
Contract Length: Some factors lock you into multi-year deals with nasty early termination penalties. Others work month-to-month. Know what you're agreeing to.
Recourse Terms: With recourse factoring, you're on the hook if the customer stiffs the factor. Non-recourse costs more but transfers that risk. Understand which you're getting.
Technology and Support: How easy is it to submit invoices at 11pm from a truck stop? Can you reach a human when something goes wrong? A clunky system or unresponsive support will cost you time every single week.
Fuel Programs: Compare the actual per-gallon discount, where the card works, and whether there are fees attached.
Reputable trucking factors generally provide:
The right factoring company makes your life easier. The wrong one nickels and dimes you while locking you into a contract you can't escape.
Research more than one option. Read the contract, especially the sections about termination and fees. Talk to other truckers about who they use and who they've had problems with. Ask potential factors how they handle disputes when a broker shorts a payment or contests a charge.
The lowest rate doesn't always mean the best deal. Factor in the technology, the service, the contract terms, and the fuel program when you're comparing options.
Our owner operator starter stack covers everything from insurance and factoring to ELDs and load boards, organized into three budget tiers.
Owner operator starter pack →Most trucking factoring runs 1% to 5% per invoice. Your actual rate depends on how much volume you do, how creditworthy your customers are, and how fast they pay. High-volume carriers with solid customers can often get rates at the low end.
Usually not. Factors care about your customers' credit, not yours. If you're hauling for established brokers and shippers, you can probably get approved even with rough personal credit.
Recourse means you're liable if the customer doesn't pay. The factor will charge that invoice back to your account. Non-recourse means the factor absorbs the loss when a customer goes bankrupt or becomes insolvent. Non-recourse costs more but protects you from situations outside your control.
Most factors fund same-day or next business day once your paperwork clears. Some offer faster options like same-day ACH or instant fuel card deposits, usually for an extra fee.
Application fees, monthly minimums, wire transfer charges, per-invoice processing fees, early termination penalties, and reserve holdbacks. Ask for the complete fee schedule in writing and question anything that seems vague.
Depends on your contract. Some factors require you to factor everything from certain customers or everything above a dollar threshold. Others let you cherry-pick individual invoices, though selective factoring usually costs more per invoice.
This is where factor quality really shows. Good factors work with you to resolve disputes and adjust your account fairly. Bad ones just charge the shortage back to you and leave you to figure it out. Ask about dispute handling before you sign.
All over the map, from month-to-month to multiple years. Longer contracts sometimes get you better rates but limit your options if the relationship goes sideways. Read the termination clause carefully. If you're new to factoring, starting with a shorter commitment makes sense until you know what you're dealing with.