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Best Factoring Companies for New Authority Carriers (2026)
Last updated: 2026-02-17
Getting your MC authority is a major milestone, but the first months of operation come with a cash flow challenge that catches many new carriers off guard. Brokers and shippers typically pay invoices on 30 to 90 day terms, which means you could be hauling loads for weeks before you see your first check. Meanwhile, fuel, insurance, truck payments, and maintenance costs do not wait. Freight factoring bridges that gap by purchasing your invoices at a small discount and paying you the same day or within 24 hours.
For new authority carriers, choosing the right factoring company is especially important. You need a provider that will accept you without an established operating history, offer transparent pricing that will not eat into your already-thin margins, and ideally protect you from broker non-payment while you are still learning which companies to trust. Not all factoring companies are created equal when it comes to working with new carriers.
We evaluated every major factoring company based on their willingness to work with new authority carriers, contract flexibility, advance rates, pricing transparency, and the additional services they offer to help new operators get established. The six companies below represent the best options for carriers in their first two years of operation.
Our Top Picks
Top Pick
Apex Capital
★★★★★4.6
Best customer service for carriers new to factoring
Best customer service for carriers new to factoring
Apex Capital has nearly 30 years of experience onboarding carriers who are new to factoring, and their patient support team is regularly praised for walking first-time clients through the process without making them feel like they are asking dumb questions. With no contract lock-in, no termination fees, and 24/7/365 funding availability, Apex removes the risk of committing to a factoring relationship before you know whether it is right for your operation.
Pros
No contract lock-in and no termination fees, just 60 days notice
Round-the-clock funding including nights, weekends, and holidays
Industry-leading customer satisfaction with a Net Promoter Score of 90
Fuel card program saving $300-$500 per month per truck
Cons
Must factor all invoices from each broker you choose to work with
Rates are not published online, requiring a quote conversation
Not the cheapest option if price is your only priority
Best overall for new authority carriers who need non-recourse protection
OTR Solutions is the strongest overall pick for carriers who just received their authority. The company explicitly targets new authorities in their first two years, offering genuine non-recourse protection that shields you from broker non-payment during the period when you are most vulnerable to bad debt. Their zero-minimum, no-hidden-fee pricing means you will not get penalized during slow months while you are still building your book of business.
Pros
Genuine non-recourse protection that transfers broker credit risk to OTR
No monthly minimums or volume requirements of any kind
All-in pricing with zero hidden fees, ACH charges, or monthly penalties
Same-day funding plus BOLT instant payment on weekends and holidays
Cons
Non-recourse rates of 3-4% cost more than recourse competitors
Founded in 2011, so a shorter track record than legacy factors
A small number of reviews mention occasional communication gaps
Best for testing factoring with minimal commitment
Thunder Funding is purpose-built for carriers who want the lowest possible commitment when starting a factoring relationship. Their 90-day contracts are the shortest standard term in the industry, and there are zero termination fees if you decide to leave. For a new authority carrier who is not sure whether factoring is right for them long-term, Thunder lets you test the waters without getting locked in. The company was founded by trucking veterans who spent decades on loading docks and in dispatch offices, and that hands-on experience shows in how they treat small operators.
Pros
Shortest contract in the industry at just 90 days with no exit penalties
Zero setup fees, application fees, monthly fees, or minimums
Founded by trucking veterans with 35+ years of industry experience
Fuel card savings up to 65 cents per gallon at 8,000+ locations
Cons
Non-recourse coverage only applies to broker insolvency, not disputes
Rate range of 2-5% is higher than some recourse-only competitors
Mobile app has mixed reviews around document uploads
Best fintech option for new carriers who want zero commitment
Bobtail is a fintech-first factoring company that built its entire platform from scratch to serve small trucking operations. For new authority carriers, the combination of month-to-month contracts, a 90-day trial period, and up to 100% advance with no reserve held back means you can test factoring with real loads before making any long-term commitment. Approval takes as little as five minutes, and you can be factoring within the hour. The Bobtail Zero fuel card averaging 59 cents per gallon in savings at over 1,300 locations can offset a significant portion of your factoring costs during the critical first months of operation.
Pros
Up to 100% advance with no reserve held back on any invoice
Month-to-month contract with 90-day trial and no termination fees
Bobtail Zero fuel card averages 59 cents/gallon savings at 1,300+ locations
Five-minute approval and same-day factoring setup
Cons
No non-recourse factoring option available
Support limited to 9 AM-5 PM EST weekdays only
Some Android app reliability issues reported by users
Best for carriers who need the highest advance rates
eCapital is worth considering for new authority carriers who need maximum cash flow upfront. Their advance rates go up to 100% of the invoice value, which is the highest in the industry, and their InstaPay system delivers same-day funding even on weekends and evenings. The company has been factoring freight since 2006 and offers both recourse and non-recourse options. However, new carriers should pay close attention to the fee structure, because per-invoice charges can significantly increase the effective cost on smaller loads.
Pros
Industry-leading advance rates up to 100% of invoice value
InstaPay delivers same-day funds even on weekends and evenings
Extensive 40,000+ company credit check database
Both recourse and non-recourse options available
Cons
Per-invoice fees and hidden costs can inflate the effective rate
Contract exit is expensive with termination fees up to $3,000+
Customer service quality varies depending on assigned account manager
Best low-rate option for new carriers with steady volume
altLINE stands out for new authority carriers who work with established, creditworthy brokers and want to keep their factoring costs as low as possible. Backed by The Southern Bank Company, an FDIC-insured institution, altLINE offers rates starting at just 0.75% and advance rates of 99-100%. There is no minimum credit score and no time-in-business requirement, so your new authority status will not disqualify you. The trade-off is a recourse-only model and a $15,000 monthly invoice minimum.
Pros
Bank-backed stability with FDIC insurance and regulatory oversight
Lowest factoring rates in the trucking industry starting at 0.75%
Advance rates of 99-100% put nearly all your invoice value in your hands
No minimum credit score or time-in-business requirement
Cons
Recourse-only factoring places non-payment risk on the carrier
Seven-day onboarding is slower than most competitors
Monthly minimum of $15,000-$20,000 excludes very small operations
Yes. Most freight factoring companies will work with carriers who have brand-new MC authority. Factoring approval is based primarily on the creditworthiness of the brokers and shippers paying your invoices, not your own business history or personal credit score. Companies like OTR Solutions, Apex Capital, Thunder Funding, and Bobtail all explicitly accept new authority carriers with no minimum operating history requirement.
What factoring rate should a new carrier expect?
New authority carriers should expect factoring rates between 2% and 5% per invoice, depending on the factoring company and whether you choose recourse or non-recourse protection. Recourse rates tend to start lower (1.5-3.5%) because you carry the non-payment risk, while non-recourse rates run higher (3-5%) because the factoring company absorbs that risk. As your volume and track record grow, you can often negotiate lower rates.
Do factoring companies require operating history?
Most factoring companies do not require a minimum operating history for trucking carriers. Unlike traditional bank loans that want to see two or more years of business financials, factoring companies evaluate the credit strength of your customers, not your business tenure. All six companies in our comparison accept carriers with zero operating history, though some have other requirements like monthly invoice minimums.
What documents do I need to apply for factoring?
A typical factoring application requires your MC authority documentation, a completed factoring application form, a copy of your operating authority from FMCSA, a voided business check for ACH deposits, proof of insurance, and your EIN or tax ID number. Some companies also request a personal guarantee. The approval process usually takes one to seven days depending on the company, with many offering same-day or next-day setup.
How quickly can a new authority carrier get funded?
After your factoring account is approved and set up, most companies offer same-day or next-day funding on submitted invoices. The initial onboarding is the only wait, ranging from same-day approval at companies like Apex Capital and OTR Solutions to about seven days at altLINE. Once onboarded, you can typically submit an invoice in the morning and have cash in your account by the afternoon or end of the business day.
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