Best Factoring Companies for Freight Brokers

Truck

Since freight brokers are constantly needing to fuel trucks and pay wages, it can always pay off to have a bit more liquidity when possible, especially since gas prices are so susceptible to fluctuation. That's why any freight broker dealing with a large volume should strongly consider freight factoring.

Freight factoring is the process of selling unpaid invoices to a third party, who will pay you a large percentage (around 90%) of the invoice's value, receiving payment from your customer later down the line, and removing their fee (between 0.5-5% of the invoice's value).

If you already know you want to work with a freight factoring partner, or are just curious to see how much it would cost, try using our free quote tool. By briefly filling out your business' info, you'll be able to quickly see quotes for how much you could spend and make through freight factoring.

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Apex

Truckstop

Wex

OTR Capital

RTS Financial

Payment time
How long does it take to receive your advance payment?

Less than 24 hours

Payment time
How long does it take to receive your advance payment?

Same-day payment available

Payment time
How long does it take to receive your advance payment?

Same-day payment

Payment time
How long does it take to receive your advance payment?

Potentially 24 hour approval period

Payment time
How long does it take to receive your advance payment?

Same-day payment available

Fees

Flat 2% rate

Fees

Flat rate, available upon request

Fees

Available upon requesting a quote

Fees

3-4% of invoice's value

Fees

Available upon requesting a quote

Non-recourse or recourse factoring?

Both

Non-recourse or recourse factoring?

Both

Non-recourse or recourse factoring?

Both

Non-recourse or recourse factoring?

Both

Non-recourse or recourse factoring?

Both

Fuel card included?

Offered, but not included in the factoring contract

Fuel card included?
Fuel card included?
Fuel card included?
Fuel card included?

Can be combined with factoring


Apex Capital

Apex’s mobile app is one of the best on the market. It provides 24/7 access to your freight factoring, from anywhere with an internet connection. The app allows users to create and submit invoices online, run credit checks, and store important documents. Better still, Apex’s app offers a fuel finder tool to help you unlock savings averaging 30 cents per gallon, at over a thousand truck stops across the US. And while freight brokers will likely already be well established, Apex also offers a great starter course for businesses looking to learn the ropes of the freight industry.

Pros

  • Doesn’t require you to commit to a long-term contract
  • Works with a range of business sizes
  • Provides a dedicated account manager

Cons

  • Costs start at 2% per invoice, per week, which is higher than some other freight factoring companies

Truckstop

Truckstop is the place to go for speedy freight factoring. Truckstop promises that you can receive payment on the same day that your invoice is verified, meaning that time-sensitive payments will be a worry of the past. It also offers a flat rate, and though it doesn't actually specify what the rate is, these can be very handy when calculating multiple invoices at once. Truckstop also has no minimum volume requirement, so companies of any size can start using its factoring service with minimal effort.

Pros

  • Same-day payment is possible
  • Flexible cancellation policy

Cons

  • Rates aren't transparent

Wex (also known as Fleet One)

One of Wex's most unique offerings is its factoring-funded fuel card. While a lot of factoring providers do offer fuel card services, Wex has a fuel card system that is intertwined with its own factoring scheme. Fuel card funds come in from your factored invoices and are deposited directly into your fuel card account. Obviously, aside from this, Wex still comes with a very fair factoring offer, with same-day funding, and no limits or monthly minimums. Its rate can also go as low as 1%, which is a lovely way to save money on an already cheap process!

Pros

  • No monthly minimums or funding caps
  • Fuel card tied to its factoring program

Cons

  • Reviews are mixed
  • The application and approval process can take a while

OTR Capital

Of the five providers discussed here, OTR Capital is the most premium of the bunch. Its rates are definitely on the steeper side (3-4% of the invoice's value, depending on whether you opt for recourse or non-recourse factoring). However, it has absolutely outstanding customer service, and a great reputation online. It also offers many of the add-ons that you'd expect from a freight factoring service, like credit checks and fuel advances. And as one would hope from a business with higher rates, your advance will come through within 24 hours, which is always handy if you're in dire need of cash.

Pros

  • In-house credit team can provide approvals
  • 24-hour payment guarantee

Cons

  • Smaller trucks can incur higher prices

RTS Financial

Factoring can be very time sensitive, so you don't want to deal with anything you don't need. RTS Financial makes freight factoring simple: with a dedicated customer support team and clear rates, it’s easy to understand exactly what you’re getting. There are no hidden fees beyond the standard rate, and you'll also get same-day funding, access to the company’s industry-leading fuel card program, and one of the best advance finance rates on the market. RTS Financial will pay up to 97% of your invoice’s value upfront, which is almost like having the entire value of the invoice weeks before it would come through normally.

Pros

  • Trucking factoring specialist
  • Have been in the industry for over a quarter of a century

Cons

  • Some reviews claim that RTS can lack transparency
Verdict

If we had to pick a perfect option for you, we'd have to go with either Apex Capital for its stellar app offering or RTS Financial for its massive advance rates. OTR is also a great pick for anyone who can afford a more premium service.

All of the suppliers on this list are worthy of your consideration, and none of them are completely flawless. However, as freight brokers, you'll likely be making enough deliveries that you use factoring a lot, so this isn't a decision to be made lightly.

If you want to be extra sure, try our quote comparison tool. By filling in your business' information, you'll be able to get free, zero-commitment quotes for freight factoring that can help you decide the best path for your business.

Frequently asked questions

Can freight brokers use factoring companies?
Yes they can! As long as your business runs shipping services, and has the invoices to prove it, you’ll be able to use a freight factoring company. Individual companies may have individual rules on who can use their services, but overall, freight brokers should have no problem using a factoring company.
What is a good factoring company for freight brokers?
While most freight factoring companies would be perfectly suitable for any reputable freight broker, our personal favorites are Apex Capital and Truckstop. Apex is great for newer trucking companies on the scene, while Truckstop is a great choice for established freight brokers.
What companies work with freight brokers?
Freight brokers are essentially middlemen between shippers and carriers. That means that instead of companies having their own dedicated shipping department, they can pay brokers to truck their goods from a shipping port to their own distribution centers, whether that’s a brick-and-mortar store or a warehouse. That means freight brokers mainly interact with retail stores and shipping companies.
How much do freight factoring companies charge?
A factoring company’s rate will vary based on a few factors, such as the invoice’s total value, the method of payment, and the time it takes for the customer to pay the invoice company, among other things. However, this will usually sit between 0.5-5% of the invoice’s value, meaning you won’t have to worry about losing out on too much money.
Duncan Lambden
Duncan Lambden Senior Writer

Duncan (BA in English Textual Studies and Game Design) is an Australian-born writer for Expert Market. His articles focus on ecommerce platforms and business software that allows small businesses to improve their efficiency or reach, with an emphasis on invoice financing and customer relations. He has written for Website Builder Expert and Tech.co, and has been featured in Forbes. In his free time, Duncan loves to deconstruct video games, which means that his loved ones are keenly concerned about the amount of time he spends looking at screens.