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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.
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Editor & Senior Staff Writer
Last updated onUpdated
REVIEWED BY
Lead Staff Writer
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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Read more below to learn why we chose these options.
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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.
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.
| Type Of Factoring | Borrowing Amount | Discount Rate | Percent Of Invoice Received | Time To Funding | |
|---|---|---|---|---|---|
| Riviera Finance | Non-recourse, notification | $2 million | Starts at 2% | Up to 95% | 24 hours after verification |
| Lendio | Accounts receivable financing | $10 million | Starts at 3% | Up to 90% | As soon as 24 hours |
| altLINE | Freight factoring | $4 million | Starts at 0.50% | Up to 99% | Same-day |
| Breakout Finance | Invoice factoring | $10 million | 1% to 3% | Up to 95% | 4-5 business days |
Pros
Cons
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.
Get Started With Riviera Finance
Pros
Cons
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.
Pros
Cons
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.
Pros
Cons
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.
Get Started With Breakout Finance
We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.
When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.
Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.
Read more about how we rate small business lenders.
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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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
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