What is
Freight Factoring?

Turning invoices into immediate cash.

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Get a free quote in minutes.

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The Scoop On Freight Factoring

In simple terms, factoring is a financial transaction that turns your invoices into immediate cash. It is a widely accepted method that eliminates the wait and worry of getting paid. Factoring unlocks money already earned, so you can put the funds to use right away.

Transportation businesses turn to eCapital to help manage receivables collection and billing. We simplify every step of getting paid, so you can focus on what is needed to run a better business.


  1. Sign Up
    Set up is fast and easy. Get approved right away.
  2. Upload Paperwork
    Submit your documents with our handy app showing the work was completed.
  3. Get Paid Fast
    Receive up to 98% of your invoice in just 24 hours. Get the rest once your customer pays (minus a small fee).



Fast Cash

Get your invoices paid in 24 hours. Use the money to buy fuel, cover expenses and fund growth.



Factoring is not a loan. This is money you already earned. You simply get access to it sooner.



You never know when a broker or shipper will pay. eCapital eliminates the uncertainty, putting cash in your hands in hours, not weeks.



If you want to expand your business, you need cash flow. eCapital provides the funds you need to put more trucks on the road and haul higher-paying loads.



With eCapital, you have the freedom to factor on your terms. You decide when you want to factor and who you want to factor. Start or stop any time.



Factoring is the only source of business financing that grows automatically with you as your freight business expands. More loads mean additional invoices and more cash – immediately.

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What Types of Transportation Businesses Use Factoring?

trucker factoring

Owner Operators

Fleet factoring


Broker factoring


Is Factoring Expensive?

The first question you might be asking yourself is how much it costs. Determining your rate is quite straight forward. All factoring companies use a few basic criteria to calculate the rate:

  • Total dollar volume you factor each month
  • Average invoice amount
  • Collection period
  • Diversity base of your customers (referred to as “concentrations”)
  • Type of freight

Based on these criteria, rates are typically 1%-5% of the amount invoiced. The benefits of receiving immediate cash typically far outweigh the fee.

A Typical Factoring Scenario

Invoice Value


Factoring Rate


Total Cost To You



Why would I factor my invoices?

Good question! Companies often turn to factoring for an immediate source of cash. In the transportation industry, waiting weeks or even months to get paid is normal (ouch!) but most companies can’t afford to wait that long. Factoring provides quick, affordable cash and eliminates the hassle of trying to collect from customers on your own.

What is the difference between factoring and a bank loan?

With a bank loan, it’s a lengthy and difficult application process, with a mountain of debt and monthly interest fees – yikes, that doesn’t sound fun to us either. While this is what you can expect with a bank loan, factoring serves as a smart alternative. With factoring you get a simple, streamlined application process with approval in hours. Best of all, you incur zero debt! Because of this – big, medium and small businesses alike benefit from factoring.

How factoring rates determind?

Determining rates isn’t quite as complicated as it may seem. All factoring companies use the same basic criteria to calculate their rates:

  • Total dollar volume you factor each month
  • Average invoice amount
  • How long it takes your customers to pay
  • Diversity of your customer base

What is the difference between recourse and non-recourse factoring?

In a non-recourse factoring arrangement, the factoring company (eCapital) will cover the loss if your customer files bankruptcy. While in a recourse arrangement, you always remain responsible for non-payment. eCapital offers both non-recourse and recourse programs tailored to meet your specific needs.

How will I receive my money?

We have a variety of methods like wire transfer, ACH, Money Code, T-check, paper check or through your eCapital Fuel Card. You can choose whichever way is easiest for you!

Are there benefits to factoring apart from fast cash?

Oh yeah, there are plenty of benefits to factoring! Many of our clients have found that factoring has helped improve their company’s credit rating since factoring allows them to avoid debt while giving them the cash they need to pay their bills on time! Factoring also provides back office support, free credit checks and professional A/R management services at zero additional cost to you!

Will the signup process be time consuming?

Not at all! It’s a simple process – you contact us to get started and from there, you’ll need to fill out a short application and provide some basic information. Then, our internal team goes to work to get you all setup in a matter of days!

Do you offer a trial period?

Yes! Our clients love that our 90-day trial gives them the flexibility to see if factoring is the right choice for them.

If I'm already working with another factoring company, can I switch?

If you’re unhappy with your current factoring company, we can help with that! The options for switching to a new factoring company vary on a case by case basis. The best thing to do is jump on a quick call with us so we can determine the best way for you to transition to eCapital.

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