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The 4 Best Factoring Companies For Trucking Businesses

If unpaid invoices are affecting the cash flow of your trucking business, these lenders can help you get the funds you need within days with invoice factoring services.

    Erica Seppala

  • Last updated onUpdated

    • Chelsea Krause

  • REVIEWED BY

    Chelsea Krause

    Lead Staff Writer

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

One of the biggest challenges of owning a trucking company is waiting to get paid. You could potentially wait for weeks (or even months!) to receive payments from your customers. This can cause cash flow issues that prevent you from growing your business or even covering operating expenses.

Fortunately, there’s a way to get paid quickly to keep cash flowing into your business. If you have unpaid invoices, give invoice factoring a try. You can have access to instant (or near-instant) cash instead of waiting 30, 60, or 90 days for your customers to pay. In this post, we’ll break down our picks for the best factoring companies for truckers to help you get the capital you need.

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CompanySummaryNext StepsSummary

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  • Discount rate: Typically starts at 2%
  • Borrowing amount: $2 million
  • Contract required
  • Discount rate: Typically starts at 2%
  • Borrowing amount: $2 million
  • Contract required

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  • Discount rate: Starts at 3%
  • Borrowing amount: $10 million
  • Contract requirements vary by lender
  • Discount rate: Starts at 3%
  • Borrowing amount: $10 million
  • Contract requirements vary by lender

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  • Discount rate: Starts at 0.50%
  • Borrowing amount: $4 million
  • Contract required
  • Discount rate: Starts at 0.50%
  • Borrowing amount: $4 million
  • Contract required

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  • Discount rate: Typically 1% to 3%
  • Borrowing amount: $10 million
  • Contract requirements are not disclosed
  • Discount rate: Typically 1% to 3%
  • Borrowing amount: $10 million
  • Contract requirements are not disclosed

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Read more below to learn why we chose these options.

What Is A Factoring Company For Trucking?

Invoice factoring (or freight factoring) for trucking companies gives you instant (or near-instant) access to outstanding funds from your unpaid invoices. With invoice factoring, you sell your invoices after loading, hauling, and delivering freight. Instead of waiting days — or even weeks — freight factoring puts cash in your pocket instantly without having to wait for your invoices to be paid.

How Does Factoring For Trucking Companies Work?

A factoring company for trucking pays you for your unpaid invoices in exchange for a small fee. Here’s how it works:

  • You sell your unpaid invoices to a factoring company.
  • The company pays a percentage of the value of the invoices to you immediately (typically around 85%).
  • The factoring company collects payments on the purchased invoices.
  • Once payments are collected, the remaining funds — minus a small fee (the discount rate) — are released to you.

The benefits of invoice factoring are that you no longer have to wait to receive payments from your customers. You also (in most cases) won’t have to worry about your personal or business credit score, putting up collateral, or meeting qualifying factors that play into other types of small business funding. Most factors consider the quantity and quality of your invoices when determining approval.

However, there are also a few drawbacks to note. Most companies charge a discount rate between 1% and 6% of the total value of your invoices per month. The longer your customers take to pay, the more this type of funding will ultimately cost your business.

Like other forms of funding, it’s important to weigh out the pros and cons. While invoice factoring for trucking companies can get expensive, the cost may be worth it if your business is facing cash flow challenges.

Unsure if invoice factoring is right for you? Check out our post A Basic Introduction To Invoice Factoring For Businesses to help you make up your mind.

The 4 Best Factoring Companies For Truckers

Fleets, owner-operators, and other trucking companies can resolve cash flow issues by cashing in on their unpaid invoices with one of these recommended factoring companies.

How The Best Factoring Companies For Truckers Compare

Type Of FactoringBorrowing AmountDiscount RatePercent Of Invoice ReceivedTime To Funding
Riviera FinanceNon-recourse, notification$2 millionStarts at 2%Up to 95%24 hours after verification
LendioAccounts receivable financing$10 millionStarts at 3%Up to 90%As soon as 24 hours
altLINEFreight factoring$4 millionStarts at 0.50%Up to 99%Same-day
Breakout FinanceInvoice factoring$10 million1% to 3%Up to 95%4-5 business days

Riviera Finance: Best For Non-Recourse Invoice Factoring

Riviera Finance

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Pros

  • Non-recourse invoice factoring
  • Funding within 24 hours of verification
  • Receive up to 95% of unpaid invoices/freight bills
  • No credit score, time in business, or revenue requirements

Cons

  • Only offers notification services
  • Possible high discount rates
  • Contract required

Why We Chose Riviera Finance For Best Non-Recourse Factoring

We like that Riviera Finance offers non-recourse factoring, so you won't be on the hook if your customers file for bankruptcy. You may still have to buy back your invoices in certain situations, such as if there was an error on the invoice.

We also like that Riviera Finance has high borrowing limits (up to $2 million) and borrowing requirements that are easy to meet. We also like that you can receive up to 95% of the value of your freight bills to get faster access to more of the funds you're owed -- within 24 hours of verification.

One thing to keep in mind is that Rivera Finance uses notification factoring, so your customers will be aware that you are using an invoice factor. If this is a problem for you, look for factors that offer non-notification services.

Riviera Finance Rates & Fees

You will need to contact Riviera Finance to find out more about specific rates and fees for invoice/freight factoring. Typically, factoring discount rates start at around 2% but vary based on factors such as industry and size of the business.

A contract is required. Typically, contracts are six months.

Riviera Finance Eligibility Requirements

There are no time in business, credit score, or revenue requirements to qualify. All you need are verifiable invoices or freight bills.

There are no monthly minimums in terms of how many invoices or bills you submit, but you may be required to sign a contract. Most businesses have 6-month contracts with Riviera Finance, although the company will work with you to find a solution that’s best for your business.

Choose Riviera Finance If...

  • You own a newer trucking business with verifiable invoices
  • You want non-recourse factoring services
  • You’re willing to sign a contract for invoice/freight factoring

Get Started With Riviera Finance

Read our in-depth review

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Lendio: Best Marketplace For Comparing Lenders

Lendio

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Total Rating 4.8
Rates & Fees5.0

Services5.0

Eligibility Requirements4.9

Application4.5

Sales & Advertising Transparency4.4

Customer Service4.9

User Reviews4.9



Pros

  • Easily compare loan options from 75+ lenders
  • Fast & easy application process
  • Funding within 24 hours available

Cons

  • Monthly revenue requirements
  • Not a direct lender

Why We Chose Lendio As Best Marketplace For Invoice Factoring

If you want to compare options, Lendio can connect you with over 75 lenders in just minutes through its easy application process. While Lendio's partners don't offer invoice factoring, accounts receivable financing -- essentially a loan that uses unpaid invoices as collateral -- is available, with borrowing amounts up to $10 million.

Because it works with multiple lenders, you can be connected with multiple lenders with different borrowing amounts, eligibility requirements, and rates to find the option that works best for your trucking business.

We also like that you aren't restricted to just one type of financing. If you want other types of small business funding, Lendio has you covered, allowing you to seek out other options including equipment financing, short-term loans, and more.

Lendio Rates & Fees

Lendio’s partner lenders have factor fees as low as 3%. Funding is available in as little as 24 hours through some partners.

Lendio Eligibility Requirements

Lendio’s funding partners do not have credit score requirements to receive an accounts receivable loan. However, you will have to meet these minimum requirements:

  • Must operate a B2B or B2G business
  • Must have monthly revenue of $10,000+
  • Must operate in the funder’s preferred industry

Choose Lendio If...

  • You want to compare offers from multiple lenders
  • You want to receive a loan using unpaid invoices as collateral

Get Started With Lendio

Read our in-depth review

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altLINE: Best For Same-Day Funding

altLINE

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Pros

  • Advances on up to 99% of invoice value
  • Same-day funding available
  • Fast approvals

Cons

  • Contract required
  • Additional fee required for expedited funding

Why We Chose altLINE For Fast Funding

We chose altLINE's freight factoring service because same-day funding is available -- ideal for trucking businesses that need quick access to capital. The company has been in operation for 86+ years, funding over $1B for unpaid invoices and establishing a solid reputation with its customers.

When you choose altLINE for freight factoring, you can expect fast approvals, cash advances of up to 99% of your invoice's value, and competitive factoring rates.

altLINE Rates & Fees

Freight factoring rates start at 0.50% but many factors could increase this rate, including the quality of your invoices and the speed at which your invoices are funded.

A contract is required and is usually set at six months. However, the actual terms of your contract may vary. You can learn more about fees, rates, terms, and contracts by submitting a request for a free quote.

altLINE Eligibility Requirements

Here’s what altLINE lists as requirements for freight factoring:

  • A completed factoring application
  • Documentation and information including EIN and customer contracts
  • List of existing and potential customers with invoices that will be factored
  • Accounts receivable aging report

altLINE does not list revenue, time in business, or credit score requirements to qualify for freight factoring.

Choose altLINE If...

  • You want to receive same-day funding
  • You want to receive the maximum value of unpaid invoices upfront

Get Started With altLINE

Read our in-depth review

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Breakout Finance: Best For High Credit Limits

Breakout Finance

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Total Rating 4.1
Rates & Fees3.6

Services3.5

Eligibility Requirements5.0

Application4.8

Sales & Advertising Transparency4.2

Customer Service3.3

User Reviews4.9



Pros

  • High credit limits up to $10 million
  • Competitive rates
  • No credit, revenue, or time in business requirements

Cons

  • Rates, terms, & fees aren’t fully disclosed
  • Funds can take a while to disburse

Why We Chose Breakout Finance For High Credit Limits

We chose Breakout Finance for its high credit limits for invoice factoring. Through this lender, you may be eligible to receive up to $10 million for your qualifying unpaid invoices.

Breakout Finance will pay up to 95% of your unpaid invoices. The company boasts competitive rates and has minimal eligibility requirements. Additional short-term funding options like short-term loans, purchase order financing, and asset-based loans are also available.

Breakout Finance Rates & Fees

Breakout Finance states that typical discount rates are 1% to 3% of the value of the invoice. While Breakout does not specifically list the types and amounts of additional fees, the company does state that any fees will be outlined in a preapproval letter following the submission of your application.

Breakout does not specify if it offers recourse or non-recourse factoring. It also does not disclose information on contract requirements.

Breakout Finance Eligibility Requirements

The only requirement Breakout lists for its invoice factoring services is to have invoices for delivered work.

Choose Breakout Finance If...

  • You want high credit limits up to $10 million for unpaid invoices
  • You want to work with a company that doesn’t have revenue, credit score, or time in business requirements

Get Started With Breakout Finance

Read our in-depth review

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Final Thoughts On Factoring Companies For Trucking

When choosing a factor, it’s important to work with a reputable company that has an overall positive reputation with its customers. Look for factors that offer great customer service and support. Make sure that the factor you select offers credit facilities large enough to meet the needs of your business. If you don’t want your customers to know that you’re working with a factor, look for companies that offer non-notification services. Finally, if you don’t plan on using invoice factoring over the long term, make sure that the factor you select doesn’t have minimums or require you to sign a contract.

If your trucking company needs extra cash, invoice factoring is just one option available to you. If you need additional funds to operate or grow your business, consider getting a business loan for trucking companies. For fuel purchases, you can also apply for a fuel credit card, which allows you to pay later, and some cards even let you build up rewards. No matter which financial route you choose, make sure to check out our reviews, comparisons, and other financial resources to help you make the best decision for your trucking business.

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Erica Seppala

Erica Seppala

Editor & Senior Staff Writer at Merchant Maverick
Erica began writing on small business topics in 2008. She joined Merchant Maverick in 2018 and focuses on loans, accounting, and POS. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll. She has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a graduate of Limestone University and resides in Greenville, South Carolina.
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