Best Freight Factoring Companies
Top 7 Freight Factoring Companies as Chosen by Carriers
Choosing which load factoring company to work with is a big decision for any carrier. While there are many benefits to factoring, it is important that you choose the company that is right for you to fully enjoy these benefits. In order to make the process a little easier, DAT has reached out to several experts to get their feedback on the best factoring companies for truckers.
Freight factoring, also called transportation factoring, trucking factoring, or freight bill factoring, is a process in which the person or business that delivers a load sells their invoice to a factoring company. The factoring company then pays the carrier or owner-operator the full amount of the invoice, minus a small percentage, within as little as 24 hours of receiving the invoice. This is often a better alternative than waiting a month or longer for a broker to pay the invoice. The time it takes to receive payment can depend on a variety of factors, but generally different factoring companies will have different timelines for payment.
The essential point to remember is that factoring should not be confused with lending. When a factoring company purchases your invoice, that invoice belongs to the company. With factoring, drivers and businesses are able to get paid in advance — and use these funds to pick up new loads — without having to get a loan or incur debt.
The following seven freight factoring companies have been selected according to feedback from carriers and owner-operators — and then vetted by industry experts. Here’s what you need to know about choosing the right one for your business.
1. OTR Capital
Better Business Bureau® Rating: A+, accredited
OTR Capital’s non-recourse factoring program leads the trucking industry in service, features and benefits. The company was founded in 2011 to help carriers and owner-operators maintain a positive cash flow while growing their business. OTR Capital has experience working with small, medium, and large companies, and is focused on building strong, long-lasting relationships with customers.
OTR Capital offers the most trustworthy flat factoring rates in the industry with no hidden fees and straightforward factoring programs. With transparent pricing, no long-term contracts or commitments, and customized factoring programs to fit your unique business needs, the company stands out as the number one choice for factoring loads.
OTR Capital’s comprehensive services have earned them overwhelmingly positive reviews. Users point to OTR Capital’s professional and personable customer service and quick response time as particularly exemplary. According to one representative from Lydel Logistics Corp, “No issue is unimportant [to OTR Capital] and all issues are fixed in a timely and efficient manner.” Another customer, R. Muller, adds, “We have been factoring with OTR Capital for 3 years and could not be any happier with our Factoring Company. OTR Capital is always striving to simplify the process for the drivers and treats their customers like family! They provide you with fuel card incentives/discounts and software to help you as a client to build the most profitable business.”
In particular, OTR Capital offers:
- Both recourse and non-recourse factoring
- No chargebacks on cleanly delivered loads from approved brokers
- 24/7 credit checks
- Simple invoicing through the client portal and convenient mobile app
- No monthly minimums, volume limits, or credit restrictions
- Dedicated account manager to handle all cash flow and back-office needs
With 4.7/5 stars on Google and an A+ rating on Better Business Bureau®, OTR Capital is the top factoring company as chosen by industry experts.
Start factoring today!
Partnering with OTR Capital will give you transparent pricing, same-day invoice processing, and peace of mind.
Register with OTR Capital today to control when and how you get paid!