6 Best Freight Factoring Companies Reviews in 2022 | Read Our Guide Before Hiring One!

The process of selling invoices at a discount to a third party to raise capital is known as freight factoring. This can be a very useful option for companies that generate many invoices each month. The best freight factoring companies can provide you with the capital you require to expand your business while freeing up your time and resources to focus on other aspects of your business.

When selecting a freight factoring company, consider their rates, fees, and turnaround time. You should also ensure that the company you choose has a good reputation and is licensed and insured. Continue reading to learn more about the best freight factoring companies and the best on the market today that you should consider for your company.

Finding the Best Freight Factoring Company for Your Company?

Freight factoring is a process that allows a company to be paid for the goods it sells before they are delivered. It's a method of smoothing out cash flow and ensuring that you always have enough money to run your business. There are numerous freight factoring companies available, but not all are equal. So, how do you find the best freight factoring company for your company?

The first step is to determine what you require from a freight factoring company. Do you require customer service 24/7? Do you require online tools to help you track your shipments? Are you looking for a company that provides both financing and factoring services? Once you've determined what you require, you can begin to narrow down your options.

Group of men sitting at a table with a laptop


The following step is to conduct research. Read reviews from other companies that have used freight factoring companies to determine which ones come highly recommended. Check with your business contacts to see if they have any suggestions. Once you've narrowed it down to a few finalists, call them and ask them questions. Find out what kind of rates they have, how long their turnaround time is, and what services they provide.

Choosing the best factoring company can be difficult, but it's well worth it if it means smoother cash flow and less stress for your company. Conduct thorough research, ask around and find a company that meets your requirements.

Best Freight Factoring Firms

Discussed below are just a few of the best freight factoring companies in the United States. Many others are available, so do your research before deciding on one for your company.

Factoring360

Factoring360, founded in 2009, is one of the leading freight factoring companies in the United States. They have reasonable rates and fees and a quick turnaround time. They also provide various other services, such as fuel advances and load financing.

Factoring written on a note


Freight Factors

Another top freight factoring company is Freight Factors. They have been in business for more than 20 years and have a stellar reputation. They have reasonable rates and fees and a quick turnaround time. They also provide various other services, such as fuel advances and load financing.

American Receivable Corporation

Another top freight factoring company is American Receivable Corporation. They have an excellent reputation and have been in business for over 30 years. 

They have reasonable rates and fees and a quick turnaround time. They also provide various other services, such as fuel and load financing.

Truckers Factoring

Truckers Factoring is a leading freight factoring firm. They've been in business for over a decade and have a stellar reputation. They have reasonable rates and fees and a quick turnaround time. They also provide various other services, such as fuel advances and load financing.

A woman with a notebook and trucks behind

Factor Funding

Factor Funding is a premier freight factoring firm. They have been in business for more than 15 years and have a stellar reputation. They have reasonable rates and fees and a quick turnaround time. They also provide various other services, such as fuel advances and load financing.

Financing Solutions

Financing Solutions is a leading freight factoring firm. They have been in business for more than 20 years and have a stellar reputation. They have reasonable rates and fees and a quick turnaround time. They also provide various other services, such as fuel advances and load financing.

Which Factoring Company Is the Best?

This is a difficult question to answer because there are many different companies, and each has its strengths and weaknesses. However, there are a few general factors that you can use to compare different companies and help you choose a freight factoring company to suit your needs;

  • First, think about the fees that the company charges. Some companies charge higher fees than others, so you'll need to find a reasonable one. You should also consider the interest rates charged by the company. Some companies charge higher interest rates than others, so you'll need to find one with reasonable rates.
  • Second, think about the services that the company provides. Some companies provide more services than others, so you'll need to find one that provides the services you require.
  • Third, you should think about the company's reputation. Some companies have better reputations than others, so you should look for a company with a good reputation.
  • Finally, you should think about the company's customer service. Some companies provide better customer service than others, so you must find a company that provides excellent customer service.

These factors can compare different companies and find the best one for your needs.

What Are the Best Factoring Companies for Truckers?

The best trucking factoring companies provide the best terms and conditions. To find the best one for your needs, compare various companies' fees, interest rates, and services. You should also consider the company's reputation and the level of customer service it provides.  

Truckers in the trucking industry should choose factoring companies that provide the services they require at a reasonable price. Some of the best trucking companies include:

  • Factor Finders
  • Thunder Funding
  • Paragon Financial Group

Factors to Consider When Evaluating a Trucking Factoring Company

The company's size: When looking for a factoring company, you should consider the company's size. A large corporation may have more resources and offer better terms and conditions than a smaller corporation.

The company's reputation: When selecting a factoring company, the company's reputation is critical. Look for a company with a good reputation and a reputation for providing excellent customer service.

The company's fees: You'll want to compare the fees charged by different companies to find the best deal. Some companies charge higher fees than others, so you'll need to find a reasonable one.

The interest rates charged by the company: To find the best deal, compare the interest rates charged by different companies. Some companies charge higher interest rates than others, so you'll need to find one with reasonable rates.

The company's customer service: When selecting a factoring company, you should consider the company's customer service. Some companies provide better customer service than others, so you must find a company that provides excellent customer service.

The type of services provided by the company: When selecting a factoring company, you should consider the type of services provided by the company. Some companies provide more services than others, so you'll need to find one that provides the services you require.

Woman doing accounting and invoicing

What are Accounts Receivable Factoring? 

Factoring of accounts receivable financing is a type of financing that allows businesses to trade their accounts receivable (invoices) at a discount to a factoring business. The factoring firm then collects payments from customers and remits the remaining balance to the business, less a fee. Businesses that have trouble obtaining traditional bank financing use this type of financing.

What Are the Advantages of Factoring Accounts Receivables?

Factoring accounts receivables has several advantages, including:

  • It provides working capital to businesses to grow and expand their operations
  • It aids businesses in improving their cash flow by allowing them to receive funds sooner than if they waited for their customers to pay their invoices.
  • It enables companies to concentrate on their core business activities rather than collections.
  • It gives businesses access to capital that they might not otherwise have

What Are the Disadvantages of Factoring Accounts Receivables?

Accounts receivable factoring has a few disadvantages, including:

  • Because the factoring company takes a percentage of each invoice sold, the business has less cash on hand.
  • The company is in charge of collecting payments from customers and ensuring they don't fall behind on their invoices.
  • A long-term contract with the factoring company might be required.

How Much Do Freight Factoring Companies Charge?

Typically, freight factoring companies charge a fee of 2-5 percent of the invoice value, plus interest. The monthly interest rate is usually 1-3 percent. Some companies may charge additional fees for services such as credit protection or fuel advances. The interest rate you are charged is determined by your company's credit score and the terms offered by the factoring company. It's important to note that freight factoring firms don't charge any upfront fees.

What Is the Freight Factoring Application Procedure?

Freight factoring applications are typically straightforward and can be completed online. Most companies will need some basic information about your business to decide, such as financial statements and invoices. The company will usually decide within 24-48 hours of receiving your application. If you're approved, you'll be able to get the money as soon as your customers pay your invoices.

Lastly, if there are still some uncertainties left, we recommend seeking advice from some of the best formation services and registered agent services out there. Here are some of the most reliable:

Trusted Business Formation Services

Swyft Filings

Despite only doing business since 2015, their 100% positive reviews are speaking for themselves. Swyft Filings offers one of the best refund policies in the industry. On a bonus side the company also has no processing or cancellation fee for your refund. It is a great company to consider when looking to designate a registered agent service for your business.

BizFilings

BizFilings takes you through the whole process from quality check to post-incorporation and also offers on-going support. You can choose various payment plans based on the features you want and your budget. The features in the higher-end packages are also available in the lower-end packages but at an additional fee. With an A+ rating with the BBB, BizFilings is a trusted online formation service. 

SunDoc Filings

When compared to other formation services, SunDoc Filings provides volume discounts for multiple states and entities and equally amazing customer support. However, if you want a service that will save you money, you may find other services in the market that cost less. Also, you may not choose SunDoc Filings if you are looking for a service with payment packages with tons of features and free registered agent service.

Inc Authority

This is one of the most reputable companies you can pick as your registered agent service. Inc Authority has enough experience in the field, having been founded in the 1980s. Its free payment package stands out in what they offer. Loads of positive customer reviews speek for themselves how satisfied and happy with their services and their LLC formation speed their clients are. 

My Corporation

MyCorporation is known for offering a fast LLC formation process. If you wish to speed up the process turnaround time, you can use their expedited service, reducing the process from weeks to a few days, thoug for a fee. Nonetheless, MyCorporation is an excellent pick as your registered agent. It offers numerous payment packages with various features depending on your budget.

FAQs

What Is the Porter Freight Funding Process?

The porter freight funding process is very simple. First, you will submit your invoices to the company. Once your customers pay the invoices, the company will remit the funds to you, minus a fee.

What Is a Non-Recourse Invoice Factoring Company?

A non-recourse invoice factoring company is a company that does not require the business to repay the debt if the customer does not pay. Businesses typically use this type of company with a high risk of defaulting on their invoices.

What Are Non-Recourse Factoring Costs?

Non-recourse factoring companies will charge a higher fee than recourse companies, typically 3-6% of the invoice value. However, you will not be responsible for unpaid invoices, as the factoring company bears the risk.

Final Thought

When looking for top freight factoring companies, ensure to consider the company's size, the company's reputation, the fees charged by the company, and the interest rates charged by the company. Also, be sure to consider the type of services offered by the company and the customer service. By doing your research, you are sure to find a freight factoring company that is right for your business. Visit our website today to learn more about freight factoring and how to choose the best company that will suit your business's needs.

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