Trucking and Freight Factoring Companies

Factoring Companies for Trucking and Freight Factoring

FactoringClub is a free service to help you find the right factoring company for your business. We have the largest network of factoring companies in the U.S. and Canada, with more than 150 partners. Check out our detailed listings, then get started with FactoringClub today and experience a streamlined path to financial success.

Match Factors

Florence South Carolina

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Match Factors specializes in freight factoring for motor carriers and owner-operators. No hidden fees and no monthly minimums.

Eric Belk

Vice President

Industries Served

Factoring Amounts

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Phoenix Capital Group

Scottsdale Arizona

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Phoenix Capital Group is a Scottsdale, Arizona factoring company that specializes in freight factoring nationwide and was founded in 2001.

Mark Decker

Business Development Officer

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Triumph Financial

Coppell Texas

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Triumph Financial is a division of Triumph Bancorp, Inc. We’re a freight factoring company with expert credit, collections and account management.

Jason Mullican

VP Channel Marketing

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Velocity Financial

Midland Texas

Velocity Financial is a Midland, TX factoring company that specializes in oilfield service companies, as well as staffing, manufacturing, and business services.

Justin Ryan

Sr. Vice President

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Sunbelt Finance

Jonesboro Arkansas

Sunbelt Finance is a factoring company in Arkansas that offers a nationwide freight factoring program used by hundreds of companies.

Mickey Seeman

Owner

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Trucking Factoring Companies

Speed is critical in the trucking industry, especially when you need to get paid for your deliveries. It’s why the entire trucking industry depends on trucking factoring, also referred to as freight factoring or freight bill factoring. Whether you’re an independent owner-operator, mid-size fleet, or large carrier, you’ll benefit from freight bill factoring for consistent cash flow. Freight factoring is the fastest way to get paid by your shippers and freight brokers, so you can deliver more loads and grow your business.

Common Myths and Misconceptions about Freight Factoring

There are a few common misconceptions surrounding freight factoring that we’d like to debunk:

  • Myth: Freight factoring is only for struggling businesses.
  • Reality: Freight factoring is a financial tool used by both new and established trucking companies to improve cash flow and support growth.
  • Myth: Factoring companies will interfere with your customer relationships.
  • Reality: Factoring companies work professionally and respectfully with your customers, ensuring a seamless transition in the payment process.
  • Myth: Freight factoring is expensive.
  • Reality: While there are costs associated with transportation factoring, the benefits often outweigh the fees, especially when considering improved cash flow and increased business opportunities.

Understanding Freight Factoring

The process of factoring begins when a freight company delivers goods to a customer and issues an invoice. The freight company then sells this invoice to a factoring company, which pays a large percentage of the invoice value upfront. The factoring company then takes on the responsibility of collecting the invoice payment from the customer.

Once the customer pays the invoice in full, the factoring company pays the remaining balance of the invoice to the freight company, minus a factoring fee. This fee is typically a small percentage of the total invoice value and serves as the factoring company’s profit.

Benefits of Using Trucking Factoring

Improved Cash Flow

One of the primary benefits of using a trucking factoring company is improved cash flow. With immediate access to cash, trucking businesses can cover their operational expenses without worrying about when their customers will pay their invoices. This can help businesses avoid cash flow crunches and keep their operations running smoothly.

Improved cash flow can also provide businesses with the financial flexibility to take on more jobs and grow their operations. Without the need to wait for invoice payments, businesses can invest in new equipment, hire more drivers, and take on larger contracts.

Professional Invoice Collection

Another benefit of using a trucking factoring company is access to professional invoice collection services. Factoring companies have teams of experts who specialize in collecting unpaid invoices. They have the knowledge and resources to handle the collection process efficiently and effectively, saving trucking businesses time and stress.

Moreover, because factoring companies depend on collecting invoice payments to make a profit, they have a vested interest in ensuring that invoices are paid promptly. This can result in faster payment times and fewer unpaid invoices for trucking businesses.

Other Benefits

Trucking factoring companies advance you cash to keep your trucks on the road, but they also do much more. Trucking factoring companies typically provide back-office functions such as credit checks on brokers and shippers; invoice generation and submission; receivables processing and accounting; as well as professional collections. These services are extremely helpful to any trucker, whether your a single owner-operator or a large carrier.

Choosing a Transportation Factoring Company

When selecting a transportation factoring company, it’s essential to consider several factors:

  1. Reputation and Credibility: Research the company’s track record, read reviews, and check if they have experience working with trucking companies similar to yours.
  2. Rates and Fees: Compare the rates and fees offered by different factoring companies. Consider not only the percentage they charge but also any additional fees or hidden costs.
  3. Contract Terms: Carefully review the contract terms, including the length of the agreement, cancellation policies, and any potential penalties or restrictions.
  4. Customer Service: Look for a freight factoring company that provides excellent customer service. You want a partner who is responsive, understanding, and willing to assist you whenever you have questions or concerns.

Industry Knowledge

When choosing a trucking factoring company, it’s important to choose a company that understands the transportation and logistics industry. Industry knowledge can be invaluable in navigating the unique challenges and opportunities of the trucking business. A factoring company with industry knowledge can provide tailored services and advice that can help your business succeed.

Factoring rates as low as 1%, up to 3%

Freight factoring rates are very competitive. Truck factoring companies offer rates as low as 1% for large carriers that factor millions in freight invoices each month, while owner-operators and smaller truck companies with one to five trucks can expect to pay between 2 to 3% for freight factoring services.

Advance rates as high as 100%

Trucking companies enjoy the best advance rates in the factoring industry. Other types of businesses such as staffing or construction often carry advance rates of 85% or less, but trucking cash advance rates are often 95% or more. Some freight factoring companies fully-fund 100% of your freight bills, advancing the entire invoice amount less factoring fees.

Non-recourse factoring

Many freight factoring companies offer the option of non-recourse factoring which is a credit guarantee that protects you from customer non-payment due to credit issues. Non-recourse factoring usually costs more than recourse, but it may give you the peace of mind you need to sleep at night. Recourse and non-recourse factoring pertain only to non-payments resulting from credit issues such as insolvency or bankruptcy. You’re still liable for disputed claims, non-delivered goods or incorrect billing.

Customer Service

Customer service is a key consideration when choosing a trucking factoring company. A good factoring company will provide excellent customer service, answering your questions promptly and resolving any issues quickly and effectively. Look for a company that is responsive, helpful, and committed to your success.

The Bottom Line

Trucking factoring companies provide a valuable service for trucking businesses, helping them maintain a healthy cash flow and focus on their core operations. By understanding how these companies work and what to look for when choosing a factoring company, you can find a partner that will help your business thrive in the competitive world of trucking.

Let us find the right factoring company for your business, among 135 network partners

Grace Capital Resources

Monmouth Beach New Jersey

Business Services Manufacturing Staffing

Jeffrey Bonner

President

Capital Funding Solutions

Hollywood Florida

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Business Services Manufacturing Staffing

Greg Porter

VP Sales & Marketing

Round Table Financial

Newport Beach California

Business Services Manufacturing Oil and Gas Staffing Trucking

Anthony Purcell

Sr Vice President

Bankers Factoring

Dalton Georgia

Business Services Government Manufacturing Oil and Gas Staffing

Chris Curtin

President

Plus Funding Group

White Plains New York

Business Services Manufacturing Oil and Gas Staffing

Gregg Rubin

President

Let us help you find the right Factoring company for your business