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Checklist: How to Choose the Best Factoring Company

By 06.24.21November 29th, 2021No Comments
How to Choose the Best Freight Factoring Company For Your Business

You’ve made a great decision; to leverage your accounts receivable and access fast cash by factoring your invoices. The next step is to find the best factoring company for trucking to meet your financial needs. It is important to choose a factoring company that understands the trucking industry and provides freight factoring, specialized factoring services designed for carriers and brokers.

Choosing a financial partner is a critically important decision; know how to choose the best factoring company for transportation. Look for the truck factoring company that offers the best factoring rates, cost-saving services and exceptional customer service.

Why should your trucking business use freight factoring?

Factoring is the sale of invoices at a slight discount to a third party (the factor or factoring company) in exchange for immediate cash. This financial transaction eliminates the need to wait 30, 60 or 90+ days for your customers to pay and unlocks money you have already earned. Now you can put the funds to use right away to pay bills and keep your trucks moving.

Factoring invoices is a common business practice within numerous industries due to the many financial benefits it delivers. Freight factoring is a specialized form of factoring designed specifically for the transportation industry. It is considered a mainstream financial option for trucking companies to speed up cash flow and benefit from additional cost saving services.

Benefits of invoice factoring for the trucking industry

In addition to providing fast cash, factoring companies are specialists in credit analysis and invoice collection. When you partner with a reputable freight factoring company, you are able to concentrate on growing your business while the factoring company improves your collections and decreases your credit risk. Freight factoring companies offer online systems that allow you to submit invoices, track customer payments in real-time and verify customer credit information.

When you work with a freight factoring company, these basic benefits, along with value-added services such as a fuel discount program, increase cost savings.

Factoring offers real value for your trucking company

The trucking industry is uniquely different to all other businesses. If managed properly, trucking can be a profitable business; however, aggressive competition, driver shortages, low margins and high operating costs are daily barriers that threaten your bottom line. The best truck factoring companies know this and provide much more than just immediate access to working capital. A factoring company that understands your business needs can provide cost-saving and value-added services to increase operational efficiency and improve your bottom line. Look for a factoring company that provides real value with convenient, cost-saving services like:

It is very important to find a good fit when looking for a funding partner for your business. Factoring services provide easy and convenient access to working capital, but only if you have chosen a truck factoring company that works well with both your organization and your customers.

Use the following checklist to assist you in choosing the best factoring company for your trucking business:


  1. Does the freight factoring company provide full transparency with online accounting and regular reports?
  2. Are the factoring rates easy to understand and simple to calculate?
  3. Do the factoring services come with hidden fees or surprises?
  4. Are there any potential delays in the funding process?


  1. Check the factoring company’s website for reviews, testimonials or case studies.
  2. Ask the factoring company for references. Speak to their existing customers (your fellow truckers) and ask about their level of satisfaction.

Superior Customer Service

  1. Is their customer support service prompt and helpful?
  2. Does the factoring services include a dedicated Accounts Manager to work directly with clients and streamline services?
  3. Does the factoring company communicate with you and your customers in a courteous and professional manner?


  1. How long has the factoring company been in business?
  2. Does the factoring company truly understand trucking…not just from a lender’s perspective, but from actual hands-on experience?

Who is the right factoring company for you?

Choose an experienced freight factoring company, they understand your business. eCapital has been in business for over 25 years and specializes in providing the transportation industry with low-cost funding solutions to improve cash flow. Our cost- effective factoring services are convenient to use, simple to understand and easy to manage.

A dedicated Accounts Manager ensures you receive superior customer service. You’ll get trusted advice from industry experienced staff to help with credit decisions, expedite funding and to answer all queries. Our specialized truck factoring services include fuel discounts, access to an exclusive broker network and a free credit search tool to reduce risk and maximize your bottom-line.

For more information about convenient, cost effective freight factoring and cost-saving services to improve your profitability, contact us today.

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