Transportation factoring companies offer transportation businesses an opportunity to shorten the time it takes to collect on invoices. Transportation providers rely on other businesses to pay invoices, but it sometimes takes as long as 90 days. Factoring those invoices can help increase cash flow, which can be used to reinvest into additional vehicles and to onboard new customers.
The top five transportation factoring companies are:
- BlueVine: (Best overall) Quick, convenient, and affordable
- FundThrough: Simplest application
- altLINE: Short-term invoices
- Paragon Financial: Most factoring experience
- Triumph Business Capital: Large amounts of funding
What Is Transportation Factoring?
Transportation companies, which include freight, busing, and delivery services regularly invoice customers. While they wait for invoices to be paid, they continue to incur salary, gas, and maintenance expenses. Factoring these outstanding invoices gives transportation companies access to a large portion of the capital immediately for a small fee.
Using invoice factoring companies, transportation businesses can scale more quickly, onboard new customers, outsource receivables, and free-up cash flow. The best transportation factoring companies offer quick funding, flexible requirements, and low rates to business owners.
BlueVine: Best Overall
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Maximum Funding | $5 million | Advance Rate | 85% to 90% |
Discount Rate | 0.25% to 1.35% weekly | Minimum Annual Revenue | $100,000 |
Expected APR | 13% to 70% | Funding Speed | 1 day |
BlueVine offers transportation companies the most balanced factoring services. It has substantial maximum funding amounts and low minimum requirements. It also has an entirely online application with one-day funding and low weekly rates on outstanding invoices. Transportation companies also can access short-term loans and lines of credit (LOCs) with BlueVine.
FundThrough: Quickest Applications
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Maximum Funding | Unlimited | Advance Rate | Up to 95% |
Discount Rate | 1% or more per transaction | Minimum Annual Revenue | None |
Expected APR | 10% to 80% | Funding Speed | Next day |
FundThrough is a newer transportation factoring company offering an unlimited amount of funding with a flat discount rate per transaction. It also offers next-day funding and has comparable terms to other providers on our list. Small business owners should know that, in some cases, FundThrough may only provide factoring to business owners with at least $50,000 in monthly revenue.
altLINE: Invoices Repaid in Less Than 30 Days
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Maximum Funding | $5 million | Advance Rate | 90% |
Discount Rate | 0.75% to 3.0% per 30 days | Minimum Annual Revenue | $360,000 |
Expected APR | 9% to 55% | Funding Speed | Up to 7 days |
altLINE offers transportation invoice factoring to businesses with annual revenues in excess of $360,000. Its fees are structured to be advantageous for small businesses that factor invoices due in less than 30 days. This makes it the best provider for a transportation company that needs to factor invoices with short repayment terms and steady invoice volume.
Paragon Financial: Most Experienced Provider
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Maximum Funding | $10 million | Advance Rate | 80% to 90% |
Discount Rate | 1.25% to 2.5% per 30 days | Minimum Annual Revenue | $360,000 |
Expected APR | 16% to 55% | Funding Speed | Up to 10 days |
Paragon Financial Group is one of the most established factoring companies available to the transportation industry. It strikes a good balance of rates and terms and, while initial funding can take a little longer, small business owners can receive funds for ongoing invoices in as soon as 24 hours.
Triumph Business Capital: High Invoice Values
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Maximum Funding | Up to $20 million | Advance Rate | 90% |
Discount Rate | 1% to 4% per month | Minimum Annual Revenue | $100,000 |
Expected APR | 12% to 72% | Funding Speed | Up to 7 days |
Triumph Business Capital is best for transportation companies that need a very large amount of funding. While the discount rates tend to be slightly higher than some other factoring providers, Triumph Business Capital has reasonable terms and minimum qualifications. Small business owners can apply online and receive additional funding as soon as the same week.
Bottom Line
Transportation companies seeking to shore up their cash flow to take on new customers or expand their fleet should consider invoice factoring as a potential financing solution. The stability of revenues in the transportation industry makes it an appealing business for factoring companies to work with. Small business owners should take the time to shop around for the best rates and terms for their invoices.
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