Finding dependable freight factoring companies can be a challenge, especially when searching for a non-recourse factoring company. Look no further than OTR Solutions, one of the premier non-recourse factoring companies in the industry.
For carriers, maintaining a healthy cash flow is vital to success. Without readily available funds, essential tasks such as paying drivers, covering fuel expenses, meeting financial obligations, and sustaining day-to-day operations become nearly impossible.
Unfortunately, not all brokers and shippers pay on time. Carriers often find themselves waiting for compensation on completed jobs for extended periods, leaving them with no choice but to rely on credit cards or accrue debt to stay afloat. This is precisely where freight factoring steps in.
Why should I work with a freight factoring company?
Freight factoring, known as truck factoring, invoice factoring, or transportation factoring, helps carriers quickly turn their unpaid invoices into cash. Instead of waiting weeks or months for payments, carriers can expect to receive the outstanding amount, with a small fee taken by the factoring company, typically within a day or two. This quick access to cash helps carriers overcome cash flow challenges, sustain day-to-day operations, cover maintenance expenses, and facilitate business expansion, rather than being held back by slow-paying brokers.
The top factoring companies for trucking understand the financial challenges carriers face and offer competitive factoring rates along with same-day funding. Some of these companies go the extra mile by providing fuel card programs, user-friendly mobile apps, and comprehensive back-office support for seamless invoicing processes.
By aligning with a reputable factoring company and leveraging accounts receivable financing options, carriers gain immediate access to funds, streamline their operations, and redirect their focus toward business growth. Ensuring that you have a reliable cash flow negates the need for taking out loans or accumulating debt, positioning your business for long-term success.
Recourse vs. non-recourse factoring
Recourse and non-recourse factoring represent distinct approaches to invoice financing. Recourse factoring is the more common and straightforward option. Your chosen factoring company purchases your invoice, providing you with an upfront payment while assuming responsibility for collecting payment from your customer. However, in the event that your customer fails to make payment, the factoring company may issue a chargeback, requiring you to return the advance you received.
On the other hand, non-recourse factoring companies assume the risk of unpaid invoices in exchange for a higher fee. In this scenario, if your customer defaults on payment or experiences delays, you are allowed to retain the funds provided by your factoring company. While this arrangement offers greater peace of mind, it comes with a caveat.
It’s important to note that most accounts receivable factoring companies that advertise non-recourse factoring actually only do so under specific conditions. For instance, a typical requirement may be that your customer declares bankruptcy during the period between your invoice submission and the scheduled payment date. Given that factoring companies routinely conduct broker checks to evaluate customer creditworthiness, these conditions are not often met. Ultimately, this means what is marketed as non-recourse factoring often closely resembles recourse factoring, just with a higher fee.
Top 7 freight factoring companies for truckers
There are many truck factoring services, so determining the best factoring companies for truckers can be challenging. But don’t worry! We’ve rounded up our top seven freight factoring companies and will give you the details so you can make the best possible decision.
- OTR Solutions
- RTS
- Apex Capital Corp
- Triumph
- Porter Freight Funding
- TBS Factoring
- WEX
1. OTR Solutions
OTR Solutions, formerly known as OTR Capital, earns the top spot with its instant funding options and genuine non-recourse factoring. They have the highest client satisfaction rate among factoring companies for trucking.
Specializing in factoring services for carriers, OTR Solutions offers competitive rates, exceptional customer service, and a straightforward factoring process without hidden fees or restrictive contracts. Their BOLT Instant Funding ensures you receive your funds in less than 24 hours. They also provide an easy-to-use mobile app and online client portal for on-the-go invoice and payment management. In addition, OTR Solutions is integrated into the DAT platform, offering factoring services, broker checks, and automated invoicing.
Their non-recourse factoring fully covers your invoice risks, and they provide high advance rates, dedicated account managers, and a fuel card with $0 in-network transaction fees at over 8,000 locations to improve cash flow.
2. RTS
RTS has been working to make trucking companies more efficient and profitable since 1986, offering fast recourse and non-recourse factoring with competitive rates. Customers praise their quick funding, quality customer support, equipment leasing options, and fuel card program. They also offer bundled services to help carriers save money, and they feature factoring solutions for a wide variety of industries like trucking, textile, oilfields, and much more.
Something to note is that a few users have raised issues regarding pricing. While you’re theoretically entitled to receive as much as 97% of your invoice’s value upfront, concerns persist about the transparency of pricing, and there appears to be uncertainty about the fees that are included. Furthermore, RTS does not provide online applications for factoring services. Instead, you are required to engage with a sales representative to discuss available factoring choices.
3. Apex Capital Corp
Apex Capital Corp, in operation since 1995, is known for its excellent customer service. They provide carriers with dedicated account executives, 24/7 access to an online Account Management Portal, and the choice between recourse and non-recourse factoring.
Customers benefit from free credit checks, fuel card discounts, and a mobile app for convenient factoring. Apex Capital Corp has transparent pricing with no termination fees, monthly volume minimum charges, or hidden costs, offering a flat 2% rate on already billed invoices.
However, carriers have noted that if you’re contracted with Apex, you can’t do business with other accounts receivable factoring companies. This can be less than ideal for carriers who need more flexibility with their factoring options.
4. Triumph
Triumph has provided financial solutions to thousands of trucking companies for nearly two decades. Its freight factoring services help carriers maximize their cash flow, whether you’re an owner-operator or a fleet owner. With Triumph, carriers can access same-day freight factoring, fuel discounts, and flexible payments so they can hit the road with confidence.
Triumph also offers equipment financing to manage trucks and trailers, as well as insurance programs to protect your investments. Triumph’s dedicated team members work with carriers to customize services to each business’s needs.
However, it’s worth noting that in some customer reviews, clients have expressed challenges in reaching Triumph’s customer service. Several customers have reported difficulty in getting prompt assistance or contacting customer support when needed. If responsive and accessible customer service is a priority for you, this is something you may want to consider when evaluating Triumph as your service provider.
5. Porter Freight Funding
Established in 2011 following the acquisition of an experienced factoring company by Porter Capital Corporation, Porter Freight Funding stands out for offering same-day invoice funding and competitive factoring rates. This service is especially beneficial for owner-operators and smaller carriers, providing both recourse and non-recourse factoring options, as well as personal representatives to work directly with them.
Porter Freight Funding also boasts a dispatching network featuring pre-approved brokers and shippers, along with additional offerings like fuel cards, insurance quotes, and compliance assistance.
6. TBS Factoring
TBS Factoring is a reputable company offering truck factoring services to both small and large businesses. Their offerings include flat-rate factoring, as well as recourse and non-recourse factoring programs, fuel cards, a mobile app, and a wealth of experience spanning more than 50 years. Whether you’re a newcomer to the industry or a seasoned veteran, TBS Factoring can assist in enhancing your cash flow.
7. WEX
WEX, well known for its fuel cards, also extends its services to factoring. WEX’s flat-rate factoring program offers immediate cash access without monthly minimums or invoice funding limits. They have dedicated account representatives, a mobile application, and fleet reporting and analytics. Notably, you are not obligated to factor all your invoices with WEX, allowing for added flexibility.
Experience seamless factoring with OTR Solutions
When it comes to factoring, the experts at DAT recommend OTR Solutions as the top choice. As a leading factoring company in the industry, partnering with OTR Solutions offers a wide range of benefits, like expediting your payments, gaining access to both recourse and non-recourse factoring options, and enjoying competitive rates. Their commitment to exceptional customer service means you’ll have all your needs met without any hidden fees or restrictive contracts. Plus, through DAT’s partnership with OTR Solutions, you can conveniently view pre-approved brokers directly on the DAT load board.
Start factoring today to enhance your cash flow!
Factoring you can trust
Partner with OTR Solutions to experience transparent pricing and same-day invoice processing, along with the flexibility to choose between recourse and true non-recourse factoring.
Start factoring and take charge of your cash flow!
