While there are many options available for truck factoring, it’s important to choose the right option for your business and your unique financial needs.
1. TBS Factoring
TBS Factoring only works with trucking companies, providing 100% cash advances along with other perks (e.g., fuel cards, free credit checks on customers). They offer recourse and non-recourse factoring and fully take over the collections process, contacting your customers via email or phone in an effort to receive payment. There is no minimum credit score needed, rates start at 1.5% per week and you can receive funding as fast as the same day.
2. Apex Capital
Although Apex Capital works with a variety of businesses, they specialize in truck factoring and provide same-day or next-day funding at a rate as low as 2% per week. They work best for small to medium-sized trucking businesses and offer both recourse and non-recourse factoring. They do not require long-term contracts or factoring minimums. Their requirements for qualification are not listed on their website; however, they are expected to be in line with the other truck factoring companies listed.
One of the top invoice factoring companies out there, BlueVine is an online lender that does not actually purchase your invoices from you. They will advance between 85%-90% of the invoice value and leave the collection process up to you. Interest rates start at 1% per week and it takes about one day to receive funding once approved. Because they are not a traditional factoring company, BlueVine requires a credit score of at least 530, three months in business, and at least $100K in annual revenue.
Fundbox, like BlueVine, is more of a lender than a factoring company, lending money based on invoices while not purchasing the invoices themselves. They offer between $100 and $100K in funding and are more expensive with rates starting at 4.66% and 8.99% for 12 and 24-week repayment terms, respectfully. There’s no volume requirement and you can receive funding as early as the same day.
For more information on how to get started with truck factoring, contact Rushview Commercial Funding today.