Top 5 Factoring Companies for Freight Brokers

Apex is the place to go for speedy freight factoring. It 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. 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. Apex also offers a great starter course for businesses looking to learn the ropes of the freight industry. Also, like CoreFund Capital, it doesn’t tie you to a long-term contract. All this led the provider to also top our best freight factoring companies ranking.

Truckstop has no minimum volume requirement, so companies of any size can start using its factoring service with minimal effort. It also offers a 2.99% minimum flat rate, which occupies a middle ground considering how much freight factoring usually costs. which can be very handy when calculating multiple invoices at once, despite not being as cheap as Truckstop’s. Also, unlike Apex and Wex, it only operates with non-recourse factoring. Because this means the freight factoring company takes on more risk, it also means it charges higher fees and its advance rates are lower.

Wex’s crowning jewel are its rates, which can go as low as 1%, which means you won’t have to give up much of your invoice’s value when factoring it. For that price tag, one would almost understand if Wex didn’t pack as many features as its competitors; however, it does. It includes factoring-funded fuel card, provides same-day funding, and has no limits or monthly minimums. On the card front, it’s worth noting that Wex’s fuel card is intertwined with its own factoring scheme. This means the funds from your factored invoices are deposited directly into your fuel card account. That fact that it operates with both recourse and non-recourse factoring makes it more flexible than Truckstop. However, its mobile app only has basic invoice functionality, packing less features than the one Apex offers.

Of the five providers discussed here, OTR Capital is the most premium of the bunch. Its rates are definitely on the steeper side (2-4% of the invoice’s value, depending on whether you opt for recourse or non-recourse factoring). This makes OTR Capital more expensive than Wex. However, by offering a fuel card program, OTR Capital is more convenient than Truckstop. It also has outstanding customer service, and a great reputation online (it currently holds an impressive 4.2/5 score on Trustpilot). 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.

RTS Financial boasts 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. Like OTR Capital, it packs a dedicated customer support team in its services. However, like Apex, its rates are not clearly stated and can only be obtained through quotes. It also offers same-day funding and can be combined with a fuel card program, run by its partner, Pilot Company.