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.
By Small Fleet HQ | Updated
| Company | Min. Operating History | Factoring Rate | Advance Rate | Contract Required | Fuel Card Included | Credit Checks |
|---|---|---|---|---|---|---|
#1 Apex Capital | None | 1.5-3.5% | 90-97% | No contract | ||
#2 OTR Solutions | None | 3-4% | 96% | No long-term | ||
#3 Thunder Funding | None | 2-5% | 90-97% | 90 days | ||
#4 Bobtail | None | 1.99-3.24% | Up to 100% | Month-to-month | ||
#5 eCapital | None | 1-5% | Up to 100% | 12 months | ||
#6 altLINE | None | 0.75-3.5% | 99-100% | 12 months |
See exactly how much factoring will cost per load and per month with our free calculator.
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.
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.
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.
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.
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.
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.