Quick answer
Compare the total dollars deducted, cash advanced, broker eligibility, unpaid-invoice responsibility and exit terms using the same invoice example. Ask for written fees and a transition plan if you already factor. Start a TruCore factoring request with your name and email; other business details are optional.
Choosing a freight factoring company starts with the cash you actually receive, the invoices it will fund, and what happens when a broker pays late. A low advertised percentage is only one part of the decision. Ask each provider to show the same invoice example and put the full terms in writing.
If you want TruCore to review your request, use our short factoring sign-up form. Start with your name and email; company, phone and operating details are optional. The request goes to TruCore for personal follow-up.
What a freight factoring company does
A factoring provider purchases eligible freight invoices under an agreement and pays the carrier according to the agreed advance and fee structure. The broker or shipper then pays the provider. A reserve may be held and settled later. Funding depends on invoice eligibility, verification and the agreement; submitting a website form does not approve financing.
First decide what problem you are solving. Is the business waiting too long for broker payments, spending too much time on collections, or short of cash before the next fuel purchase? Faster invoice payment does not change an unprofitable load into a profitable one. Keep total-mile load costs separate from the cost of receiving payment earlier.
Compare factoring companies using one invoice example
Ask for a written illustration using a $2,000 eligible invoice. The following is arithmetic, not a Thunder Funding or TruCore quote:
- At an illustrative 2% fee, the factoring charge is $40.
- At an illustrative 3% fee, the charge is $60.
- If either example adds a $15 transfer charge, the total becomes $55 or $75.
- If a reserve applies, ask how much is held and when it is released. A reserve is different from a fee.
A provider with the lower headline rate can still cost more when transfer charges, minimums or time-based increases apply. Compare the total dollar deduction and the timing of the money, using identical invoice and payment assumptions.
| Compare | Ask for |
|---|---|
| Fees | Invoice charge, transfer costs, minimums, extra services and any charge that changes over time. |
| Cash received | Advance amount, reserve and an example of the final settlement. |
| Broker approval | How you check an individual broker and what happens if a load is ineligible. |
| Timing | Document requirements, verification steps, cut-off times and the payment method. |
| Exit | Contract term, renewal, notice, cancellation costs and release process. |
Understand recourse and non-recourse before signing
With recourse factoring, the carrier may have to repurchase or replace an unpaid invoice under the agreement. Non-recourse protection generally covers specified credit events rather than every reason an invoice remains unpaid. Documentation errors, load disputes and fraud may be excluded. Read the definitions and exceptions in the actual proposal.
Use a concrete question: “If this broker disputes delivery, who carries the unpaid amount, what evidence is required, and when could it be charged back?” Ask the same question about broker insolvency. Do not treat a marketing label as the complete answer.
Check the process your dispatcher will actually use
Before choosing, ask how your team verifies broker eligibility, submits an invoice and proof of delivery, sees a rejected document, and contacts a person about a missing payment. Confirm who owns each step. Dispatch support and factoring are different services, even when the paperwork connects them.
Request a sample workflow using synthetic records. You can assess the process without emailing a bank statement or live customer file to several sales teams. Ask how corrections and disputed deductions are recorded, then decide whether the reporting will work for your business.
Switching factoring companies needs a transition plan
If you already use factoring, tell the new provider before moving any invoices. Review the existing agreement, outstanding balances, notice requirements and release process. Ask both providers who will coordinate notices and any required releases. Avoid submitting the same invoice to two providers while trying to move quickly.
Keep a dated list of invoices and the party responsible for each. A clean transition is more useful than a promised start date that ignores unfinished obligations.
Review the first settlement before comparing savings
Ask for a sample settlement statement alongside the proposal. Start with the invoice face value, identify the advance, list each deduction, and show any reserve still outstanding. Then check when the remaining balance becomes available. Two proposals can advertise the same fee while producing different amounts of immediately available cash.
For example, a hypothetical $2,000 invoice with a 95% advance produces a $1,900 initial advance before any applicable deductions. The remaining $100 is not automatically an extra fee. Ask whether the factoring fee is deducted from that balance or from the advance, and when the balance is released. Do not add the reserve to the fee and call the sum the cost without checking the settlement mechanics.
Also ask what appears in the portal when an invoice is rejected, partially paid or disputed. Who explains the reason, how do you correct the record, and what information will your bookkeeper receive? A clear answer can reduce avoidable follow-up after the first invoice.
Decide which services you actually need
Separate essential funding requirements from optional conveniences. Record the brokers you commonly use, expected invoice sizes, preferred payment method and the person who prepares delivery records. Ask whether the proposed package changes when volume falls or when you choose not to factor a particular invoice.
Do not compare an introductory offer with another provider's ongoing terms as if they are identical. Request the conditions that apply after the offer, plus any notice needed to change or end the arrangement. Keep the written comparison with the date and representative's name so you can resolve a later difference against the actual proposal.
Ask TruCore about Thunder Funding
Thunder Funding is a freight factoring provider you can ask TruCore about. We work with a Thunder Funding representative and personally coordinate requests. Thunder Funding confirms its own eligibility, rates, agreement and funding terms. This guide does not rank it as the best provider for every carrier or promise a particular rate.
Use the factoring request form to reach TruCore. Your name and email are enough to start. Our team reviews the request and follows up; the website does not automatically forward your information to Thunder Funding. You do not need to join the dispatch trial to send a factoring inquiry.
Sources and next steps
Provider explanations checked October 15, 2026: what freight factoring is, rates and fees, and recourse versus non-recourse. Your written agreement controls the actual terms.
Frequently asked questions
How do I compare freight factoring rates?
Use the same invoice amount, payment timing and service assumptions for each written proposal. Compare the total fee in dollars, any reserve, transfer charges, minimums and contract obligations. An advertised percentage alone is not the full comparison.
Does non-recourse factoring cover every unpaid invoice?
No. Coverage depends on specified events and exclusions in the agreement. Ask how broker insolvency, documentation problems, disputes and fraud are handled, and which responsibilities remain with the carrier.
How much information does TruCore need for a factoring request?
Start with your name, email and permission for TruCore to contact you. Company, phone and further business details are optional. TruCore reviews the request personally; the website does not automatically forward the information to a factoring provider.