How to choose a freight factoring company

Lists of the “best freight factoring companies” rank on things that may not matter to your operation. A fleet hauling for a few large brokers needs different terms than a new authority booking off load boards. Compare factors on the questions below, and get every answer in writing before you commit.

1. What will you actually pay?

The headline rate is only part of the cost. Ask for every fee that can come out of an invoice:

• Is the fee flat, or does it grow the longer the broker takes to pay?
• Are there invoice fees, ACH or wire fees, monthly minimums or charges for paperwork?
• What does a rush or same-day payment cost?
• What happens to the money held back, if any, and when is it released?

Then do the math on one of your real invoices. A quote you can’t turn into a dollar amount isn’t a quote.

At FFS: one flat fee. New carriers pay 2.9% and get a 97.1% advance; rush requests add a flat $40 processing fee. No minimums and no invoice fees.

2. How much do you get up front?

The advance is the share of the invoice you receive when you’re funded. A higher advance means more cash in your account now. Ask how the advance and the fee work together, and what you receive on a typical invoice.

3. How fast is “fast”?

“Same-day funding” can mean very different things. Ask:

• What’s the cutoff time, and what happens to invoices sent after it?
• Is there a rush option, and how quickly does it pay?
• Do they fund on weekends?

At FFS: rush requests fund within 60 minutes. Standard requests are processed and ready to fund the same day.

4. Are you locked in?

Read the contract term and how you leave. Long terms, automatic renewals and termination fees can keep you with a factor after it stops working for you.

Also ask whether you must factor every invoice or can choose. Choosing lets you factor slow-paying brokers and keep fast payers to yourself.

At FFS: no contracts. You choose which invoices to factor. A lower rate is available if you choose to commit.

5. Who carries the risk?

Ask whether the factoring is recourse (you buy back an invoice the broker never pays) or non-recourse (the factor takes that credit risk), and exactly which situations each covers. Non-recourse usually costs more, and the protection often applies only to brokers the factor approves.

At FFS: recourse by default, non-recourse on request.

6. Will they help you avoid bad brokers?

The cheapest unpaid invoice is the one you never haul. A good factor checks a broker or shipper’s credit before you book the load.

At FFS: free broker and shipper credit checks.

7. What about fuel?

Fuel is the biggest bill between pickup and payment. Ask whether the factor offers:

• Fuel advances at pickup, how much, and whether they’re available at night and on weekends.
• Fuel cards with discounts, and what they cost.

At FFS: fuel advances of up to 40% of the invoice, within 60 minutes of verification, 24/7. Free FFS fuel cards on the EFS network with $0.08–$0.40 per gallon discounts at 14,000+ locations and no monthly fees.

8. Can you reach a person?

Call each factor you’re considering, at night or on a weekend. Who answers? Slow answers mean slow fundings when something goes wrong with a load.

At FFS: a real person answers nearly around the clock at (813) 773-4002.

9. Do they know trucking?

A factor that works mostly with other industries may not understand rate confirmations, BOLs, detention or broker quick-pay terms. Ask how many of their clients are carriers.

At FFS: trucking is all we factor. We’ve been in business 12+ years and have purchased $1B+ in invoices.

Compare your quotes

Question	What to ask for
Cost	Every fee, in dollars, on one of your invoices
Advance	What you receive up front on that invoice
Speed	Cutoffs, rush option, weekend funding
Contract	Term, renewal, how you leave
Invoices	Factor all, or choose
Risk	Recourse or non-recourse, and what each covers
Brokers	Free credit checks before you haul
Fuel	Advances at pickup, fuel card discounts
Service	Who answers at night and on weekends

Want to see how FFS answers every line? Get a quote or call (813) 773-4002.