Many truck factoring companies have a minimum volume requirement in their contract, which states how many dollars worth of freight bills you have to process with them in order to be their client, often at least $25,000 to $50,000 per month. Owner operators and small trucking companies who want to save money by only factoring some freight bills can have a difficult time reaching that cutoff, so we’ve created a list of freight factoring companies that have zero or minimal volume requirements. Agencies that specialize in truck factoring may offer additional benefits, such as free credit checks on shippers/brokers, but some also offer fuel discounts or log auditing, so it’s worthwhile to shop around for the best rates and services.
If you need a step-by-step guide to how freight factoring works, check out our Lazy 5 Minute Factoring Guide.
I am looking for a freight factoring service that does not require a mandatory minimum invoice volume.
Hello David, a lot of owner operators and small fleets face the same challenge. That’s why I created this list of freight factoring companies that do not require a minimum invoice volume. Any company on the list should be able to help you. If that’s not the case, let me know and I’ll make an update.
As someone who knows a lot of these factoring companies, I can give you a bit of advice. Most of these factoring companies have hidden fees regardless of what they advertise. They also give you their overview orally and when you sign one of their “agreements” it tells you that anything that was written or orally agreed upon prior to you signing will be overridden as soon as you sign because that “agreement” supersedes all else. Also, the term “agreement” is never the case, it is a CONTRACT, plain and simple, they know the difference but expect you not to. Do NOT sign away your company’s life or your own by signing one of these “agreements” without READING & UNDERSTANDING everything! If you do, you WILL regret it. You also will have to give them written notice prior to termination of the “agreement” or else the “agreement” will automatically renew, then you’re locked in again. Make sure it outlines RECOURSE & NON-RECOURSE programs. These factoring companies also send out UCC-1 filings to your customers, stating that payments are to be directed to them and not you, then when you decide to severe ties at the end of the “agreement” they might charge you for them sending out the UCC-1 filings. They will provide you with a release letter BUT it is solely and absolutely your responsibility to notify & serve your customers with the release letter or else they can still receive payment from your customers even after your “agreement: is terminated. Sound like a good idea yet? They also have the right as “Security Interest” to put LIENS on your assets, documents and control your mailings, in effect at ANY U.S. POST OFFICE. Sound like a good idea yet? The best thing I can tell you is, if you have to use a factoring company, don’t sign up when you don’t have time to READ. MAKE SURE YOU READ, READ, READ….THEN GO READ AGAIN. If a company has more than 3 pages of contract, DON’T USE THEM! If you cannot fully and completely understand the contract, DON’T USE THEM! If you talked about something, asked if you’ll get it in writing and then get the contract with none of it in it, DON’T USE THEM! #PLAIN&SIMPLE…….. KEEP ON TRUCKIN’
I agree with Don. I work for a factoring company and I have seen numerous carriers burned by factors because they did not read and understand their contract. It’s an unfortunate dark side of factoring and has lead to a general disdain of our industry which I completely understand.
Make sure you get everything in writing!! Also, be careful when you sign long term contracts as you could find yourself stuck with a company you hate.
Mr. Don trucker thank you very much for your input. I am right now as I write getting massive phones calls a company called ecapital has been talking to me about joining them I am a small company just started and I really don’t understand why I need a company like this but your information is valued, again thanks for the info.
I went with Thunder Funding because I wanted non recourse and because Dan at Thunder was the only one that sent me a full copy of their contract without signing an application first. Others try to trick you with the ‘application’ first, then you find out it was an ‘agreement’ that they try to charge you to get out of.
Dear David, I also just started my company within the last year and I actually use ECaptial. Initially it was fine, but now I am not able to get some funding done even though they have already received payment for the loads. And I’m not talking a few hundred dollars, I’m talk several THOUSANDS of dollars. They keep rejecting the invoices and then saying it’s our fault. I’m ready to sever ties with this company. Just a heads up. Be wary.
Damn, you were heaven sent, the agreement I was about to sign is 12 pages long, and a lot of terminology an attorney would have to go to school again just to decode, thanks again, they almost GOT ME!
Don is so right! I am now in the midst of closing down my business after being used by a factoring company!
I was experiencing a small problem collecting invoices on time, so my accountant (who received a $500 referral payment from the factoring company!) suggested I use a factor. I said no, and that I didn’t like the idea. I figured if I wasn’t collecting funds owed to me, I could just cease my service to that company until they paid, which has worked in the past. However it was a recurring problem – getting payment on time – and so my accountant brought up factoring about three more times before I submitted to his “good idea”…So…I’m thinking, “great! this will really help!” Now I will have more cashflow and someone to help me collect!
Wrong.
Factors supposedly help by funding before your customer pays, and aiding in collections. That, by definition, is essentially what they are – they fund early, and collect the money owed. They should give a percentage portion of your invoices up front, and the rest when the customer pays, minus the factoring fee. Before signing the contract I said “what if you’ve already funded me, and then one of my clients doesn’t pay YOU?” and they said (though I can’t prove it in a court of law) “don’t worry, we always get paid, we have a strong collection team”
Well this is what happened…
They were funding and funding and funding, and everything was going fine. Then, TWO MONTHS AFTER THE FACT, they tell me my one client hasn’t paid for the last 9 weeks for which I was providing my service to him. So do the math…9 weeks, plus another 8 weeks before they told me, and we’re looking at almost FOUR MONTHS LATER, that they tell me he owes. Now they start funding me for waaaaay less than my invoices are worth. They then asked ME to go collect the money from the client. Isn’t this why I hired THEM? If I wanted to go around myself collecting invoices that are late and past due I wouldn’t have hired the factor in the first place. So, I go there, ALMOST FOUR MONTHS LATER, and his office is gone. Find out later, he’s left the city and owes a ton of money to everyone.
They started to lower my payments by the $10 Grand, that the client owed me. Fine, I’m resilient, and I overcome this obstacle, by racking up my credit cards, and trying to carry on with my business. So….I continue with the factors (because I have to) and I carry on. Then, one day, again, they say that one of my other clients is not paying, and they cannot fund me. I ask how much they owe, and the factors tell me they owe $30,000, and haven’t paid since July. When they told me this, it was the END OF OCTOBER!! So they start lowering my funding AGAIN. They ask ME, again, to go collect. I tell them that’s what I hired THEM for; to help with my cashflow problem by funding me early for unpaid invoices, and COLLECTING!! If I am experiencing a cashflow problem by not being funded for my own invoices, and also asked to go collect my money for the factors, then what the F&#K is their purpose?
Now I can’t pay my rent, I lost my apartment and moved into an awful little room. I can’t pay my credit card bills, I can’t pay my office rent, I can’t pay my insurance, and I can barely afford to eat. What’s worse, is that I can’t pay three of my workers, because their pay is related to the customer that owes the Factors. Now I never have the cash to do what I need to do, and it is directly the fault of the factors, and their lies and manipulations. DO NOT USE A FACTOR. EVER. They are now penalizing ME, because my client owes THEM, yet they let my client get away with it for three months.
My old system of “ceasing service until client pays” worked much better. I’d wait TWO weeks, not THREE months! After two weeks, I’d pull back my service and say “when you pay I will continue” then the customer would pay and I’d continue. I complained to my accountant about this happening sometimes, and he suggested the factoring to “ease my cash flow problem” but now that I’m with the factors its TEN TIMES WORSE, as now my client has received my service for FREE for three months, and can’t afford such a large amount owing.
I’m getting frustrated and rambling on now….long story short…FACTORING COMPANIES ARE NOT THE WAY TO GO!!!
Wow, waiting so long to tell you about those delinquent clients is inexcusable. What is the name of the factoring company so everyone can steer clear of them?
Hey, Steve…Unfortunately your story is all too common. But not all factoring companies are the same.
First…a good factoring company will not bind you with a contract, but rather an agreement. They should earn your business with every invoice.
Second…I would suggest that any small trucking company should ONLY consider non-recourse/ non-reserve factoring. And the rates are in line if you are dealing with a reputable, well-funded company. They might reject individual invoices, but they will tell you BEFORE you pull the load.
Also, any company that will pay your accountant a $500 referral fee is a company that is going to stick it to you.
Oak Hill Capital Corp
Im looking for a factoring company myself, but only for a few brokers that are very slow pay. And if it don’t sound right or cost effective i’ll just wait for payment, my wife will be doing all of my paperwork and billing. I worked for a company for a few years that we booked our own loads and negotiated our own rates so I know which ones out of the ones I use have a good credit rating. Im waiting for my authority to go active this week. My truck and trailer is paid for, I just don’t understand why you would need paid after every load? If your that broke you have no business being an owner operator running your own authority. I know theres a few that do quick pay with no fees, I ve worked with several that will just pay with no fees, just cut a check. Im just saying these companies are like VULTURES getting rich off of your needs. Id say at least have 10,000$ in a safety deposit box or bank, and or a good fuel card. You cant pay these guys 5% for what you worked for, makes no sense.
Im still looking for a company for when the time comes I might need them. Not saying I wont but for the most part Ill be OK. I just cant see living load to load, that’s nuts and definitely a recipe for failure. So, that said, Im open for suggestions on a good factoring company, and Im not paying 5% unless Im really really in a bad situation.
Sounds like Freight Collect Inc. in Shelby NC…
My company is having the same problems with Capital Credit, Inc. and Financial Carrier Services. A whole bunch of BS and never any responses to your questions. We sent a customer over for factoring and the company was denied credit so to get payment I billed them directly. A week later the factoring company comes back and says the check is to come to them. How is this possible when you told me they were denied.
I know what you mean. We were using both Capital and Financial. Got rid of Financial due to their poor work ethics then tried getting a buyout from Capital but they refused. These are two of the worst factoring companies I have ever dealt with. We submit bills to Capital in a timely manner for next day funding only to find that the funding often times occurs 2 to 3 days after the fact with no explanation as to why. Emails go unanswered and telephone calls are fruitless. Tried seeking assistance on how to complain only to find out that they are only monitored by a board and no government agency. Maybe if we should all got together and wrote to congress about having one of the government agencies monitor the factoring companies everybody would sleep a lot better.
Guys, first of all, anyone in business is in it to make money, including all of us but there is always some truth to the stories you hear, especially the horror stories when it comes to factoring.
Steve T is correct in his statement. Not all factoring companies are the same. A lot of people are sold a bag of goods by SALESMEN!! Face facts guys thats what they are and thats what they are trying to do, SELL.
Everyone!! must do their due-diligence prior to signing any contract for any type of service, especially when it revolves around your money and financial stability. A vast majority of factoring companies are managed, a subsidiary of and or financially backed by HUGE financial investment firms, hedge funds, banks etc, why?? If you fall for the gimmicks there is a TON of money to be made. They are in it to make returns for the investor, by the handful, not service your interest in the hopes of making a profit. Just like you dont work for free either. There are much more reputable and or honest factors to associate your business with and they are out there, harder to find because they dont have the enormous budgets for marketing some of the unscrupulous giants have. They still make a nice profit but arent selling you on the 1% factor with recourse and reserve with day to pay escalation, ect. They work off of a fair margin and dont need to screw you to make it worthwhile.
Well managed financial institutions are money printers that can afford to hire people just to cleverly manipulate your method of thinking your signing a deal thats in your best interest all the while structuring it so it costs you so much more than you realize and keeping you factoring forever, ultimately until you realize this and muscle up and move on or go bankrupt. A good factoring company does have its interest first but should have a good interest in your financial stability as well, after all they need you to survive to continue to prosper as well. If it was an honest industry why would they make the paper trial of how the money really adds up by the time you receive the final payout so difficult to understand. It takes a person with a CPA background to understand the extremely complex mathematics it takes to accurately compute the real costs, why?? Because we drive trucks and a vast majority of us would never be able to figure it out. Im not insinuating were not smart but were far from bankers and thats what they count on.
The long and short of it. The following statements might offend but they are sadly true.
If you sign any contract for an extended period of time that will cost you money to cancel, you deserve what you get. (just like a cell phone company’s contracts, they know there better deals out there and dont want you to leave without punishment, difference, at least you get a discount on the phone purchase)
If you fall for the all so famous incredibly low rates that have day to pay escalation fees, you deserve what you get. (this is done so you will NEVER really know what your getting and trust me you will pay more, much more and will have no way to verify when funds were actually received by the factor, this is the honor system at its best and truthfully I would never hand $1000 to a stranger and leave expecting them to be there when I return. Depending on the size of your business your potentially handing them tens if not hundreds of thousands to be trustworthy with, much to tempting in my opinion when 1 day could result in a 1% larger loss to you and gain for them)
If you fall for the reserve with recourse ridiculously low rates, you deserve what you get. (do the math, how can you factor an invoice lets say for $100 with a 10% reserve at 2% but only receive $90 up front. They have screwed you right up front. They have insured themselves against any potential loss by holding a fraction of your funds, guaranteed themselves a minimum/profitable return and already gave you less than the amount you thought you were getting. This scenario really is 2.1+ % from the start, not including escalation and they will hold that 10% for at least 30days. See what I mean about complicated math, this method usually results in about a 5% cost, much more than some non recourse companies I know.)
And so on and so on it could go
Advice: Take it or leave it; if you want a straight up deal then search for a straight up deal, they are out there. Find a factoring company that will give you the easiest most uncomplicated straight math deal you can find. Non recourse is no more expensive than recourse if you could ever really do the math to figure out the true cost, and if it is, trust me it is so minimal you would be foolish to tie up your profit in escrows and reserves to potentially get a fractional benefit in the end. Dont get suckered in by the gimmicky sales pitch and low ball rates, they simply dont exist. Do your homework and find a factor that has as much or nearly as much to loose as you do, after all if you go out of business or drop their services they arent making any money either.
Hope this shines a little light on the subject.
interstate capital ( a Factoring Company) offered 5 % fee free credit checks on brokers. can anyone a test to the reliability and good faith of this company. the agent also mentioned no commitments.
Don’t know about them. But Oak Hill charges a lot less. They won’t give you free credit report but they will let you know if the broker is approved.
I think Interstate Capital is on the up and up. Short term contract. (90 days) 4.99% for 100% of load. 3.99% for 90%. Free ACH and Fuel Card Transfers and one free wire per week. free credit check, free load board. fuel discount offer on com data at 10-17 cents off the pump. No hidden fees.
Maybe not the best rates but not a rip off either. I’m considering them but looking at others as well.
Hey have you heard of TAFS. I haven’t signed anything yet but I am doing my homework though. I haven’t heard a good thing about them yet.
We had a problem with TAFS employees signing up on our site, pretending to be customers and posting fake testimonials. Other than those fake good comments, I’ve heard nothing but bad things about them.
They’re trying to make sign the agreement but I refused to do it because when I spoke to them on the phone they told me 3.7%, but on the agreement I see fees, likes transfer fee. So I deleted their email.
TAFS is a god awful nightmare, stay away from them.
never tafs they horrible
Do not I repeat do not sign with TAFS , they tried to automatically make me renew with them. Took money off loads because broke didn’t pay and they waited 3 months before letting me know. They also tried to intercept all my invoices on a whole new company I started. I repeat do not sign with TAFS they are a complete rip off
I’m with interstate and looking to change. they never pay in 24hrs as I was told. high fees and poor customer service
Whatever you do READ THE CONTRACT FIRST! Then google them with the words, “complaint”, “rip-off”, “scam”, etc, in the search line after their name to see what others are saying about them.
Don’t sign a contract that says you guarantee them a certain amount of invoice value in a year…for example, you guarantee they will factor $60,000 in invoices. This means if you fall short, you will be required to pay the difference to them.
Pay close attention to the TERMINATION clause in the contract/Agreement. If you are required to pay a termination fee, don’t do business with them. You should only sign if the termination can be done “by either party for any reason”.
The devil is in the detail!
I just Left this company last week after being with them for 4 years. 3 years ago they was on point,but now a lot of changes have been made and it’s all bad. They let me know after 2 to 3 months of late payments from brokers and can never get them on the phone to speak about any problems. Please do not go with them I know it maybe too late now but they’re the worst. I’m looking for a new company now but thinking I’ll just go with quick pay from the brokers until I do enough research of finding the right company.
I’m speaking of interstate capital. Please stay away from them. Save yourself the headache.
does anyone know anything about thunder funding they are on list of top 5 does anyone use them or have any comments about them …thanks
My dad went with Thunder funding and we had nothing but issues. We are now with CoreFund Capital out of Texas and they have been a godsend!
I did extensive research on Thunder Funding before I started doing business with them. They have been fabulous! Immediate responses on all calls and emails when I have had needs or questions. They played a key role in helping our company get off the ground. They have delivered on every promise they have made and done it with the best customer service that I have received from a company in many years. It is amazing to have a company treat me as well as the client as I have always treated clients of our company. They are all a breath of fresh air! Thank you Thunder Funding for all you have done for us. I recommend this factoring company to all of you. Mr. Shannon
Mr Shannon
Do you still feel the same about Thunder Funding? I am looking at them and Oak Hill. They both “sound good”. Their agreements don’t seem riddled with all of the rules and fees of most factoring companies.
Tom
THUNDER FUNDING DROPPED ME BECAUSE MY CUSTOMER WAS PAYING LATE, BUT I TOLD THEM FROM THE BEGINNING WHAT TO EXPECT. A FEW TIMES THEY WERE LATE ON PAYING MY INVOICES BECAUSE THEY WERE REEVALUATING MY ACCOUNT. I ASKED THEM IF YOU DECIDE TO STOP FUNDING PLEASE GIVE ME A WEEK OR 2 NOTICE. THEY DIDN’T, FIRST THEY ASKED IF IT IS OK WITH ME TO FUND ONLY 80% I AGREED THEN THEY STOP MY FUNDING 2 WEEKS LATER AND NOW THEY WONT EVEN GIVE ME MY MONEY I HAVE IN THE RESERVES THAT THEY HAVE ALREADY BEEN PAID ON. KEVIN AT THUNDER IS A GOOD GUY TO WORK WITH BUT I DON’T KNOW ABOUT THE REST. AS OF RIGHT NOW THEY SCREWED ME. AND WOULDN’T RECOMMEND THEM. THEY ARE VIOLATING THEIR OWN AGREEMENT.
I checked out both of those company’s as well. I went with Thunder because Dan sent me a full copy of their contract to read BEFORE making me ‘apply’. The other company’s I found wanted you to sign their ‘application’ first then you find out there are fees or something to get out.
Does anyone know or heard of Century Finance or business factors as far as being good factoring companies?I know the top 5 are listed here and i’ve read your blogs but i’m in the same boat as far as trying to find a good one to use for myself,i’ve never had to use one before but now i am changing my game plan and have to use brokers and load boards for awhile but can’t wait the 30-60 days .
I do see some factoring outfits that offer fuel cards is that something to stay away from?
If a factoring company offers a fuel card, that doesn’t tell you whether they’re good or bad. Some companies offer a lot of extra features and services, and all those extras are usually tied to a higher rate on the factoring fee. It’s entirely possible that the benefit you get from all the extras outweighs the negative of a higher factoring rate, but make sure you look closely and do the math for yourself.
Here are two quick points to consider:
1) A fuel card alone generally shouldn’t be the basis for your decision. If you have to choose between a company that offers you a fuel card and a company that offers you a lower rate on factoring fees, choosing the lower rate is almost always going to save you more money.
2) The fuel card being offered by a factoring company might not be any better than the one you can get by applying directly with a fuel card company.
Samuel, I think eCapital should be removed off of your list whenever you decide to update it in 2014.
I am on a 90-day trial contract at 1.5%. That’s 1.5% if the broker pays within 30-days. (That means the check or funds have to arrive at eCapital by day 30, not in the mail & date stamped / post marked by day 30). The fee increases 1.5% every 15 days, which means one can pay 1.5%, 3%, or 4.5% depending on when the money arrives at eCapital. Their online system only tells you the days it took for your broker to pay, they don’t provide what they profited in a written summary report, so you have to call and ask how much they collected for each invoice just to be sure your numbers balance with theirs.
They will still send out an invoice & charge you for it ($1 per invoice. Now it went up. I was charged $4 for 3 invoices they sent out.) even though you sent one to your broker via email or regular mail. (Be careful when you date your invoice. I’ve dated & emailed my invoice to the broker say on the 1st, waited a week to submit my invoice for funding via email to eCapital, say on the 8th and here is what happened. The clock for payment started on the 1st, not when eCapital sent out their invoice to the broker. No way to gain an advantage there.
Reserves get paid out as they get paid by the broker. They pay out the 1st of each month ONLY. So if the payment arrived late, your funds will sit there until the 1st of the following month. If you request an early payout there is a fee.
Lastly, if you choose not to fund anymore BOLs, they will start to take funds from your reserves in order to meet what you agreed to in your contract. Meaning, fund X amount of $ per month.
Oh, an additional cost is this: they now want me to mail or FEDEX ..my invoice, Rate Con, Original BOL and a Account Transmittal sheet. A month ago it was only the Original BOL. So more money out of the window per transaction.
Positive: Good customer Service; fast 24 turn-around on pay because we fund 2 to 5 BOLs at a time so we only pay $10 for a ComCheck. Otherwise it would be $10 per Invoice…or $9 per ACH.
Thanks for letting me inform you about this company and I hope you reevaluate your listing.
Ciao, Mikey G.
Mikey, thanks for taking the time to write this out, you’ve done a great job of discussing non-obvious factoring costs. I think I’ve been negligent by not explaining these in the article above, it deserves better positioning so people can have more information before they start searching for factoring.
I’m not disregarding your complaints about eCapital, they’re worth discussing. Here’s my case for why eCapital still makes the list:
All those extra terms and fees are standard in most factoring agreements, and their rates and terms are better than the dozens of other companies that didn’t make the list. That they gave you a 90-day trial contract is a prime example, because most factoring companies tie clients up with 1 year contracts.
That said, there are other options on the list of top factoring companies that are more transparent about their fees, and when you account for every nickel and dime the other options can be less expensive than eCapital. For example, Oak Hill Capital Corp looks expensive at 3.5%, but they don’t nail you with extra charges, so it ends up being possibly the cheapest freight factoring out there. But unlike eCapital, they only have 1 payment option, no fuel card, and no fuel advances. So, not a perfect fit for everyone.
When it comes down to it, I think the vast majority of owner operators and small fleets are going to get better service and lower rates with someone on this list than they would elsewhere.
Keep in touch, if you turn up a good alternative then it would be helpful if you posted your research here.
Just an update while ENDLESSLY researching freight factoring companies…I just got off the phone with John with Oak Hill/4 Winds and was able to take the tips I found here to look out for. While they offer 3.5% and non-recourse program there are late fees and damage fees – invoices less than $500 they add a charge, there’s additional charge for invoices, they prefer scanned BOL’s which means additional charge, fuel advance of 50% of the load with an additional charge…. Pre-paid fuel card only… And ole John just really gave me the impression he didn’t care one way or the other. I hung up feeling very disappointed after the positive feed back I had read here…. Although most comments here are several years old.
Samuel, I’d like to think of the issues I brought up about eCapital as “Disadvantages and/or in fact Hidden Issues” that they may not be forthcoming about when they sign you up. My purpose for posting my experience was to able to tell others as one from having been on the inside, which unfortunately is only made possible until after you sign the contract.
Today is the day I send eCapital my cancellation letter because if I don’t, I will be locked in for a year.
Let me know if you find a Factoring Company with: low fixed rates (below 2%) non-dependent upon volume; free ACH deposits; accepts scans via email & pays within 24 hours; allows me to mail the BOL only when needed.
Ok, good and bad news here…
Good news:
– Free ACH deposits is doable with most factors on the list, it’s something you’d need to negotiate upfront (factors aren’t being charged banking fees on these transfers, so it’s just labor cost you’re asking them to eat)
– Accepting scans via email/fax, mailing BOL only when needed is something that both Thunder Funding and Oak Hill allow
Bad news:
You’re not going to get a fixed rate of 2% or below unless you have volume. Think $100k/month plus, probably more than that. The factoring company’s own borrowing costs and overhead on an account will make it unprofitable to give a client the rate you’re talking about without volume.
The longer it takes your clients to pay their invoices, the more expensive it is for the factoring company to lend you money. You can get under 2% with volume and if the vast majority of your invoices pay under 30 days, but invoices that regularly creep above 30 days are going to make that low fixed rate unprofitable for the factor.
If a factoring company tells you they can meet all the requirements you gave without requiring monthly volume in the six figures, run the other way. The only way you’ll be a profitable client for them at 2% is if they tack on other hidden fees and terms that you weren’t expecting.
Sorry, that ended up being mostly bad news. If you find a factoring company that disproves what I’ve written here, please let me know because they’d obviously deserve to be on this list.
FCS have giving me a 2.9% rate with no penalty for ending agreement as long as there’s a 60 day notice so that they can collect their money. Are they any good?
Being able to get out of the contract for no fee with a 60-day notice is good, though there are still plenty of ways a factoring company can damage your business if they aren’t trustworthy.
Mixed reviews about Financial Carrier Services (FCS) on the forum: https://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/227201-financial-carrier-services-inc.html
We are currently customers of FCS. They are not a trustworthy factoring company to use. Take it from me. When it’s suitable for them the rules change almost every week.
I’m with FCS and my biggest complaint with them is that you can never get a hold of anyone. Especially when it’s an emergency. I got a hold of them today when I just wanted to ask a question but it wasn’t urgent. However.. 9 times out if 10, you can never get a hold of anyone. I’ve also gotten several calls from brokers wondering why they haven’t received BOLs and invoices. I tell em that my factoring company should take care of that. Then I’ll get a call from them again saying they can’t get a hold of anyone as well. There are more fees than the 3% as well. They say they match brokers percentage for example, ch rob and landstar pay 1.5%. They still hold the 3% and supposed to rebate the 1.5 later once ch pays. I have yet to see that and whenever I get a hold of someone I ask and they say they’ll look into it and still nothing. They do pay on time for the most part, granted you turn in your paperwork well before the cutoff time for the day to get paid the next day.
FCS is absolutely horrible. I have been waiting on a call back for 3 days now. They are not honest, and very rude, especially Jamie in Financing. I was told by her that a check was cashed by me that I didn’t cash, she basically called me a lie, said that I did and it could be verified. She later sent me an email that said that was a mistake, but never had the decency to apologize. I have had several brokers call me and complain about not being able to get in touch with anyone about invoices. All around horrible customer service, the only list they should make is #1 for the WORST FACTORING COMPANY.
How about companies such as TBS, and APEX?
I had bad experience with Freight Capital. This one wanted to cash money from brokers that I never turned BOLs to them. Only because one broker was over 30 days for payment. I advise never to use Freight Capital. They are full of lies.
I’ve heard mostly positive things about both TBS and Apex. A quick rule of thumb is to go with whoever offers the shortest contract and low/no termination fee. Choosing a company based on price is tough, because there are so many ways that not-so-great companies can lure you in with a low factoring rate and then stick you with additional fees. Choose someone who has enough confidence in the quality of their service that they make it easy for unsatisfied customers to leave.
I have used apex for about 5 years, didnt have any problems yet. they started me off with 3 1/2 % and worked my way to 2 1/2% and those are non recourse . They nickle and dime me here and there but i always focused on the big picture but those small charges add up over time. they charge for same day funding , additional 1 %. I dont know i been ok with them but i am always looking for the best deal. by the way i think they have some velum minimums but i have been between 1- 3 trucks. they dont pay attention to me so i am sure they would raise the fees because i got 1 truck in action then 3 trucks…. overall i think they ok.
can anyone tell me if oak hill is on the up &up they sound good any problems
They sound really good to me as well. I’m very much considering them above the others I’ve been researching.
Poor on returned calls wanted to move from another factoring company and this was my red flag so I did not pursue them. Seems like they were too busy to get a new client which make me think that my business would not be appreciated.
@snowman
We’ve been factoring with oak hill for a bout 6 months. We haven’t had any problems. I haven’t been hit with any hidden feeds and just like their agreement says, no recourse no reserve.
Security Credit Corporation is horrible. The debtors have 60 days to pay them but they only contact them twice (at least in my case). I had to call the debtor and find out why the payment had not been made because we were being charged late payment fees and didn’t know it until I asked for money from the reserve account. It’s ridiculous how they treated us and I wouldn’t recommend them to anyone that works hard for their money.
We are in a situation where our factor company has been screwing up very often lately and would like to change. Does anyone know of a company that pays off the old factor company in order for you to switch companies. This company started out great then started changing personel almost as much as I pull different loads.
When a client wants to leave their current factoring company for a new one, it’s not unusual for the new company to buy the open invoices from the current company. Choose a company based on the qualities that are important to you, and whoever you choose will probably be able to accommodate you. When problems arise, it usually comes from whichever company you’re currently using, as they can make it difficult for the new company to buy out those invoices if they’re trying hard to keep your business.
If you run into trouble, use the Contact form on this site and I’ll do my best to help you out.
DO NOT US CARRIER FINANCIAL SERVICES FROM SOUTH CAROLINA THE WORST LIERS
Samuel
I have been trying to get agreements/contracts from most of these factoring companies. A RED flag goes up for me when they won’t give me one unless I fill out an application. Does this make sense to you?
Oak Hill and Thunder Funding seem to be worthy of your top 5 for me right now. We need to get this in place next week due to severe cash flow problems due to drivers and damages/breakages.
Any further insight into “standard” terms to expect would be appreciated.
Tom
Hey Samuel,
I factor my loads with thunderfunding and I am somewhat satisfied with them right now. The con is that they do hold a reserve and even though this is not their fault, sometimes you have to mail in the original BOLs. The pro’s, they do cover most of the loads, just check with them first before you load with a company that appears sketchy/new/not enough credit history, etc.
I responded to this comment in an email conversation a couple years ago, but given some recent interactions it clearly needs to be posted here:
YES! It’s a HUGE RED FLAG when a factoring company makes you fill out an application before showing you a contract. Dishonest factoring companies will use “applications” as an excuse to file on your UCC, essentially holding you hostage or forcing you to pay a termination fee if you decide not to work with them.
DON’T SIGN ANYTHING UNTIL YOU HAVE A FINAL CONTRACT!
interstate capital factoring please do not use them, please stay away. my business shutdown because of them. Ripoff , liar, not honest. please do not sign the contracts without reading it really good before you do anything. please please please stay away.
I MAKE BIG MISTAKE SIGN FOR FACTERING WITH OUT READING I SEE NOW UCC FILE 4% CHARGE $250 monthly charge no phone answer to solve push me out from my busneses my truck is going to reposet please please be careful read well before you sign this is my advice
Has anyone heard anything on JD Factors
JD is ok, but not good. They do same stuff as every other not-great factor. Their “reports” are near incomprehensible and they are not non-recourse, no matter what they say. They answer phones & emails quick but want you to do collections and invoicing. Ended being more work for less $$.
I have been factoring with Thunder Funding since the day they started very happy with them. I recommend that you. read and have some one review the agreement and advise you of your responsibility and liability then if you can live with that is the best company for you.
Hey guys don’t do ever deal with OTR CAPITAL they are bad people they are lies to me after I signed my aggrement with ten I found out a lot of things hidden so just be careful guys , if someone can get me a good factoring company I’ll be more thankful for
Thanks
Bro you are so right ,when they call me they say all the most lovely thing because they know what owner what to hear. But now i’m trying to leave them and they are talking about all kine of fees, the paperwork they send to me 1st they mark all what i would be getting . PLEASE RUN FOR YOUR LIFE
Any one experience with factoring company called fleet one plz let me know
If any one had been dealing with them and how u like there service thanx
Good Morning
I have fleet one and I STRONGLY DISLIKE THIS COMPANY. Please don’t use fleet one for factoring. I will share my story later.
Thanks. very informative ! Wex fleet one is bad. I confirm.
They do file Ucc and brokers can’t pay my invoices until I get a release letter. Read and write google reviews
They are AWFUL! Stay Clear of Fleet One/WEX.
Too many stories to share, but will share one. Factored an invoice June 28, 2017, 2 months later showed up on aging report, emailed customer service to tell them customer had not received any paperwork/invoice (I emailed POD to customer, but had to wait for Fleet One to send invoice)and December 15, 2017 they withheld money from a current schedule to cover the non-payment from the June 28, 2017 invoice. I called and screamed at them, there response was we will take care of it. Yea….sure you will. They are notorious for not getting the customer paperwork. Just stay clear……
I agree. We have had nothing but problems with them after about 2 months of signing. They withhold money without any communication. They make numerous mistakes that will cost your business. Not worth it. We, also, have had to resubmit paperwork to brokers/customers that they didn’t receive from Fleet One.
Anyone heard of Express Freight Finance? They are a newer company and I liked many things about them. They don’t have a contract but an agreement. You can opt out any time with no fees. I can’t seem to find any reviews for them though.
Needing info about Fleet One too,any info out there?
I’m also looking for a freight factoring company, has anyone had any experience with Triumph?
RUN from Pavestone Capital based in UT. They lock in those UCC filings as soon as you apply, without waiting for you to sign their 29 page contract. Plus no mention of a $100 fee to cancel those filings they never had permission to do.
Our online application that clearly states we can file financing statements (UCC’s) at the time of application. This is done so we can purchase invoices quickly and not wait for the state to record a UCC filing before funding. Factors have done this for years to be faster at funding the client. Some states take several days to record a UCC delaying funding to the client otherwise. Each state charges a different fee for recording a UCC so we use a round number that covers our cost of filing and the labor associated with filing and managing the file. The application doesn’t get processed until they check the box and agree to the terms shown in the photo below.
This also states the applicant will reimburse Pavestone for costs incurred if the applicant withdraws prior to funding. Our cost to underwrite an applicant is between $500-$2000 depending on the size of the applicant so with a $100 charge, we lost money on processing this application.
Finally, our contract is 16 pages. Any other pages sent are for setting up bank accounts for funding, signature authorizations for employees authorized to work with us or move money on behalf of the client. Without a good contract, we (us and the client) have to go to court and have a judge be the referee which is much more costly then reading a contract or paying an attorney to review and advise the applicant. A factoring company without a contract will not be in business for long.
Please review and take into serious consideration. Loves has Factoring and from I have been told is month to month.
I am currently with TAFS Trans Am Financial.
These guys are ridiculous, they tell you, you are denied access to speak with accountants and claim its forbidden. I have tried to file a formal complaint with the National Factoring Association and now my attorneys generals office. It is concerning that I am denied an administrative review over monies paid and received
They withhold reserves and claim there is a short payment yet when an overpayment comes in from same company they continue to hold the monie simply because the payment does not specifically dictate where the overpayment is to be applied. Rendering the short payment as non funded and needlessly charging fees
Do not become their puppet.
Tafs is terrible
Anyone heard of Transwest Capital out of Visalia, CA? Says month to month.
Does anyone have any experience with Accutrac? Can you tell me what is the difference is between recourse and non-recourse? I have been reading all your comments and they are quite helpful thanks. I don’t want to get sucked into something that we’ll regret. and I do read everything.
Hey AKors, good question about Recourse vs. Non-recourse. I’ll give you a quick definition and then explain a common misunderstanding.
Recourse: if you haul a load for a shipper/broker, send the documents to your factoring company for payment, and then the shipper/broker goes bankrupt before they pay your factoring company, you have to pay back the factoring company (because the invoice you sold them is no good).
Non-recourse: Same situation as above, but if the shipper/broker goes bankrupt before they pay your factoring company, your factoring company is responsible and you get to keep the money the factoring company already paid you.
This situation is somewhat rare. If you contact your factoring company about the shipper before hauling the load, they’ll look at the shipper’s credit to see if they’re a safe financial risk and let you know whether they’re willing to factor the invoice. Factoring companies don’t like to factor invoices from risky shippers — even if their own money isn’t on the line, they don’t want their client (you) to have to eat that loss… bad for their business relationship with the client.
Important fact that many people overlook about Non-recourse: non-recourse does not protect you if the shipper refuses to pay the invoice because of damaged product, late delivery, or whatever. Non-recourse only protects you when the shipper is unable to pay because they are financially unable to do so.
Take your time deciding on a factoring company. Don’t sign anything or fill out any “application forms” until you have a copy of the factoring contract that you agree with. It’s safe to fill out any of the quote request forms on our site, those can’t be used to lock you into any contracts.
DO NOT USE ACCUTRAC PLEASE…I USED TO BE WITH SIENNA FUNDING NO PROBLEM UNTIL LAST DECEMBER ACCUTRAC BOUGHT IT, THAT WHEN MY NIGHTMARE BEGUN. I AM DOING INVOICES, THEY CHANGED MY NON RECOURSE TERMS TO RECOURSE WITHOUT TELLING ME, THEY ARE DOING CHARGE BACKS THAT THEY ARE NOT SUPPOSED TO AND I EVERY SINGLE WEEK I AM DOING 1 OR 2 CALLS FOR COLLECTION ON SOME BROKERS WITH THE “PRESSURE” IF THEY DO NOT PAY IN A FEW DAYS THEY WILL CHARGED ME BACK…PLEASE DO NOT USE ACCUTRAC.
I was with Sienna funding also. I purchased a truck and trailer thru Sienna. I too had no problems with Sienna. I was truly pissed off when I was informed that Accutrac had purchased them and the fired my rep then the next rep I had, now almost all of Sienna people are gone. I paid my truck and trailer off in Feb 2019. I had more trouble with Accutrac over the payments due date and grace period I had with Sienna than anything. I have had a broker that was later paying and found out within a timely manner they wanted a physical BOL etc mailed to them to pay off of not via electronic pay..
I was never given a contract with Accutrac but it all ways seemed funny that I hardly ever had to cover more than $500 on my $2,250 truck payments, until Accutrac took over then I was short around $1200 a month when my payments came due. I have been running the same volume since I started with Sienna. Now the engine is out of my truck and I’m looking at another purchase. I haven’t funded anything for a month and I’m about to zero with them. I’m looking at alternatives to factoring. I’m happy enough but I have been looking at options!
What about rts financial or corefunding or ecapital
After reading all of the comments, I am very thankful that I havnt had any of these issues! I own a small trucking business here in Amarillo Tx. Fortunately enough, I have never had a need to use a factoring company! Waiting on my invoices is not an issue. I do have my local bank that will factor for me if needed, but my best advice is to arrange quick pay with your customers. You may say to yourself, not possible! However, most folks you do business with, would rather have that arrangement, than deal with factoring services! For example, my main customer is Seaboard, and I work direct, no brokers involved! They pay me every 8th day, simply for not using a factoring company. I only ask them once, worked out great! Next, I refuse to haul broker freight, or for any customer that want pay me within 14 days! Beyond that, staying financially fit, will reduce the risk of loosing everything. Covering your a## every step of the way is very important! this info, or advice may not work for everyone, and there are some who will ridicule me for saying! This coming from a man with one truck and 3 refrigerated trailers, and pays NO money to get my MONEY! If you must uses factoring companies, because your finances force you to, CYA!!
Do not factor with Vero Capital from Memphis, TN. Reasons -they will keep
your customers payment for a week in their account before it gets processed and deposited into your account. They send the invoices a week late, and they don’t do collections like they claim they do, the longer your customers take to pay the better for them.Also they will change your fees contract;
I find out they were changing me $20 per invoice for 60 minute pay( I don”t know why they called it 60 minute,because it takes 3 hours for them to pay you the money,I guess so they can charge you $20.00). I specifically told the agent same day pay
because is free. As soon as my contract is over I will be looking for another
Factoring Co. Any suggestion for a honest one.hahaha
Has anyone had any experience with Steelhead Factoring out of Southern Oregon? Reviews look pretty good and I am looking for a more local company, somewhere I’ll be more than a # on a page. Any insight would be much appreciated, thanks!
What did you think about TBS factoring
Factoring companies are owned by middle eastern scam artists.
Has anyone heard of “Pay4Freight” ? I wanted to see if there was anything bad about it.
Actually went to see Jim and Robert at Pay for freight. they are less than truthful and wasted my time. small time, with very little practical knowledge of the industry. Stay away from this outfit. Based in Flower Mound Texas.
Step 1. Find a guy in a leather jacket with slicked back hair. Step 2. Get a loan. Step 3. Pay off said loan in 1-3 months. Step 4. Enjoy movement of arms and legs. Step 5. Be thankful you didn’t use a factoring company.
Seriously though it sounds like IF you were considering using a factoring company, the 500 bucks your lawyer will charge you to go over the “agreement” is money WELL spent and your local Italian banker is a better option. lol
Has anybody done business with Triumph Business Capital. I just now received the contract and there is a lot of stuff in here that they are basically saying “they can basically control my business assets and personal assets if they want to.”
I lost my insurance for 8 months. And after starting again and being FFG customer for 5 years. Here is what I got from them.
“Ben,
Although we are honored that you would like to work with FirstLine again, I think it best if you found an alternative company to finance your accounts receivable.
Below is what is owed to FirstLine from days gone by.
You may make arrangements with Lisa to settle the debt and then we can release you of your obligations which will allow you to find another Factor.
BK EXPEDITED DEBT TO FIRSTLINE FUNDING:
$640.88 Negative Reserve Balance
$970.00 97 days of Negative Reserve
$500.00 Exit Fee
Total due $2110.88”
Has anyone had any issues with Loves? They aren’t wanting to process one of our BOS due to a problem we had FMSCA that put us as inactive even though we were active. We paid $80 to fix the issue which wasn’t our fault. So know Loves says we need to bill the company direct. Why would they approve the company before we accepted the load and now don’t want to process the work. I’m very frustrated.
Financial carrier service is not Good stay away from them,has 2,000 dollars holing on me with no reason.
Hello
I changed my factor company last year from “Core Found Capital” to “WEX Fleet One” for the reason that Core Found rejected most of new brokers. It was my big mistake. “WEX Fleet One” buy out all my old invoices from my previous factoring company and wasn’t fully paid from “Core Found” for more than year for unknown reasons. Now the “WEX Fleet One” charge me all this amount , also they charge my unpaid current balance with brokers without explication. I contacted the most of brokers and i was surprised that “WEX Fleet One” never send them invoices for payment. They hold in reserve about 15k of my money for unknown time…I do not recomend to work with this company, they have just a few account managers who will answer on your calls once a month and unprofessional staff who will tell you that you have to send yourself invoices to brokers. Please recommend me a factor company that cares about their customers and that will work with me without letter of release from previous factoring company.
Thanks in advance
I am having the same problems with Apex . When I talk to Molley she was supper nice and everything was find at first. As time go by all of a sudden they don’t get paid for some of those load and now they want their money from me 2 months after its almost $6000
that was what happen to me and i went to OTR which is my worst move
Have you guys ever heard of RTS Carrier Services Factoring? Just starting a new business & was considering a good factoring company but after reading all the reviews I’ve gotten a little nervous about doing business with any of them…
Hi have anyone heard of Assist Financial Services out of Madison ,SD… been reading all the comments , was co- owner of another company and going solo .we use Tafs before , not using them again, searching for another decent factoring company..
Thanks for all this Information. Any company that will buy your bol and pay you < if customer donot pay thats not your problem. i hear of custumer not paying and the truck driver has to pay it back. Thank you
I really like ecapital. Used to be a broker and did not use factoring but I paid a lot of them. We are hotshot now and factor with ecapital get our money so easy and they are so helpful
Well after 2 years with Thunder Funding we switched to MHC, and it looks like we will be going back to Thunder, or to Triumph. RUN from MHC. They got rid of fuel advances last night at 5:10pm (after my office was closed, so I didn’t see the email till this morning) AND didn’t honor the one I requested at 1:21pm yesterday afternoon. I may not need fuel advances often, but it is a requirement and I did tell the salesperson this when researching companies. Fuel advances show in their own rate sheet attached with contract paperwork, yet they are now trying to say it’s not a part of their contract. Looks like we’ll have to get our lawyer even though MHC breached their own contract. Will update if this turns out not to be the case. But, point is, if they are willing to take a service away with no notice, what changes next? Jump their percentage to factor? Take away fuel cards with no notice? Maybe stop offering to fund to anything but fuel card? No thanks.
Tafs put a UCC on my company for applying. RTS did the same thing. Accutrac has completely destroyed my business. First, they locked me out of my account, and suddenly nobody could tell what was wrong. SEcond, they refused to fund our new shipper, because my husband had never signed a contract with them. Third, they are claiming that I owe them $18,000! for ‘non-factored’ invoices, but yet they were holding $18,000 in our AR account, and guess what those supposedly nonfactored invoices amount to $18,000! Someone was counting on a nice bonus for that one.
Has anyone ever worked with Axle payments, any suggestions on a good factoring co for new owner operators?