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Hot shot trucking moves fast. Securing cash flow and working capital for hotshot loads can make or break your trucking company.
Find the best factoring companies. They offer freight factoring and non-recourse factoring for trucking companies and their needs.
Top providers include Outgo Inc, OTR Solutions, Apex Capital, and TransPecos Banks. This expert review compares advance rates, speed, and customer service to boost your cash flow.
Key Takeaways:
- Triumph Business Capital and BlueVine lead for hot shot trucking. They offer up to 95% advance rates and same-day funding within 24 hours.
- Choose factoring company options with low fees and fast payouts. Look for trucking expertise to handle delayed freight broker payments.
- Triumph focuses on trucking industry. BlueVine offers flexible tech solutions for owner-operators.
What is Hot Shot Trucking?
Hot shot trucking uses pickups and gooseneck trailers. Owner-operators and small carriers haul loads under 26,000 lbs without a CDL.
They handle time-sensitive freight. Examples include oilfield equipment tracked on DAT One load board.
Hotshot loads average $3,500 to $8,000 per haul. The segment grew 15% from 2020 to 2023 per American Trucking Associations.
BOL invoices and rate cons verify loads for freight factoring. Bill of Lading confirms delivery. Rate confirmation shows payment terms.
Gurley All Freight hauled 4,200 lb oilfield pipe. The rate con showed $5,800 payable in 30 days.
The factoring company approved the invoice, and provided same-day funding at a flat rate with no reserves. This process ensures quick access to working capital for fuel discounts and maintenance, common pain points for small carriers posting on load boards like DAT One.
Hot shot trucking differs from traditional trucking. It focuses on speed and smaller payloads, often requiring non-recourse factoring and credit checks to mitigate freight brokers credit risks.
Key benefits include:
- Non-recourse factoring up to 95% advance rates
- Mobile apps for invoice submission
- Account managers for support
Hot shot drivers handle diverse hauls, from construction materials to automotive components, supporting industries like oil and gas. Factoring helps owner-operators maintain cash flow without recourse, unlike slower bank loans. Tools like mobile apps for invoice submission and account managers streamline operations, making hot shot a viable niche in the trucking industry.
Why Factoring Matters for Hot Shot Trucking
Invoice factoring provides hot shot trucking instant funding by selling BOL invoices, addressing 45-60 day payment delays.
These delays tie up 70% of owner-operators' working capital per ATA research. These delays stem from irregular hotshot loads and slow freight broker payments, which create unpredictable revenue streams for small carriers chasing spot market opportunities on load boards like DAT One. Without steady funds, truckers struggle to cover daily expenses amid fluctuating fuel costs and equipment needs.
Owner-operators face cash shortages. Brokers demand quick hauls but pay late.
Smart factoring turns unpaid invoices into instant funding. Trucks stay on the road.
This fits hot shot work. Loads range from oilfield runs to urgent deliveries, setting the stage for smoother financial management and growth.
Freight factoring lets trucking companies bid aggressively. It turns payment waits into usable capital.
Timing rules this industry. Factoring prevents lost jobs and rising costs, vital for a sector where timing dictates success and every delay risks lost jobs or rising costs.
Benefits of Invoice Factoring
Factoring provides 90-95% advance rates on hotshot invoices in 24 hours. It boosts cash flow by 300% for owner-operators.
Integrated cards offer fuel discounts up to 10%. An OTR Solutions study reports 92% user satisfaction and $150K average annual savings.
Check the ROI. On $100K monthly invoices at a 2% flat rate, drivers pay $2K for $92K instant funding.
This beats waiting two months for payments. It avoids risks like fuel price hikes or missed loads.
- Same-day funding lets you bid on DAT One loads instantly, securing high-paying hotshot runs without dipping into savings.
- Fuel cards save $0.20/gallon via fuel discounts, like $200 per full tank for a dually truck on long hauls.
- No reserves mean full invoice payout upfront, unlike loans holding back portions until broker payment clears.
- Mobile app simplifies invoice submission from the cab. Account managers provide quick customer service.
- Transparent pricing and no hidden fees build steady working capital. Small carriers benefit from smart factoring options.
These perks include automated invoicing. They also provide Visa Debit access.
Owner-operators hauling for companies like Outgo Inc or TransPecos Banks stay ahead. They keep momentum in competitive markets.
Common Cash Flow Challenges
Hot shot truckers lose $50K per year on average. Cash flow gaps come from freight broker delays.
TIA data shows 40% face payment disputes. 60-day broker terms create the top issue.
Non-recourse factoring solves this. It shifts credit risk away from drivers.
Truckers wait weeks for funds on completed loads. This stalls the next job.
- Fuel advances are critical at $1,500/load; high advance rates cover this immediately, preventing downtime.
- New brokers bring credit risks. Drivers run MC DOT credit checks via SAM.gov and use RateView Analytics to validate rate cons.
- Recourse factoring buybacks burden drivers with bad debts; switch to non-recourse for protection and peace of mind.
- Payment disputes tie up capital; quick sign-up with a reliable factoring company ensures same-day funding post-resolution.
Partner with factoring firms for quick sign-up. Use their mobile app for invoice submission and dedicated account managers.
Fuel cards and no-reserve payouts help too. They turn challenges into opportunities for owner-operators and small carriers.
Key Criteria for Choosing a Factoring Company
Hot shot truckers pick factoring companies carefully. They look for advance rates above 90%, non-recourse protection, and dedicated account managers.
Trucking forums say 65% of failures come from poor customer service. Hotshot loads arrive irregularly.
Drivers need same-day funding for fuel and maintenance. This avoids waiting 30-60 days for broker payments.
Owner-operators want mobile apps for quick invoice submission. BOL invoices and rate cons need steady cash flow.
Small carriers chase spot market loads on boards like DAT One. Good factoring keeps cash flowing.
Key factors include transparent pricing with flat rates. No hidden fees help, along with fuel discounts and fuel cards.
Non-recourse factoring protects from broker defaults. 20% of brokers delay payments over 90 days.
Quick sign-up takes under 15 minutes with MC DOT verification. Drivers hit the road faster.
Coming sections cover advance rates, fees, funding speed, and customer service. They guide the choice.
Advance Rates and Fees
Top factoring companies offer 92-97% advance rates. They charge 1.5-3% flat rates with no reserves.
Banks give only 70% advances and take 30+ days. High advances provide immediate working capital for hot shot trucking.
Owner-operators face unpredictable loads. Flat rate pricing charges a set percentage no matter payment speed.
Recourse factoring risks bad debts. Triumph Business Capital gives 95% advances at 2.2% flat fees with no reserves.
A $10K invoice becomes $9,500 on day one. This keeps trucks rolling.
| Company | Advance Rate | Fee Structure | Reserves | Example ($10K Invoice) |
|---|---|---|---|---|
| Triumph | 95% | 2.2% flat | None | $9,500 Day 1 |
| BlueVine | 90% | 1-3% | None | $9,000 Day 1 |
| Apex Capital | 93% | 1.8% | 5% | $9,300 Day 1 |
A $10K invoice at 95% advance delivers $9,500 on day 1. This beats waiting for $0 and covers fuel and repairs right away.
No hidden fees help small carriers earn more. Pair it with automated invoicing and credit checks on brokers through RateView Analytics.
Speed of Funding
Providers offer same-day and instant funding.
- TAFS, RTS Financial, TruckSmarter
- TBS Factoring, eCapital, Thunder Funding
- Porter Freight Funding, Single Point Capital
- Transportation Management Group, MaxTruckers, RTS Pro app with Blynk payment
AltLINE and Gurley All Freight succeed with clear prices.
Mobile apps like RTS Pro speed up funding. They cut waits from 60 days to under 4 hours for 85% of cases, based on OTR Solutions data.
Upload BOL invoices and rate cons in 2 minutes. Get automated approval in 15 minutes and deposit via ACH or Visa Debit in 1 hour.
Hot shot truckers stay on track. No cash gaps from spotty loads.
- Upload via app
- MC/DOT check
- ACH or Visa Debit deposit
Outgo Inc gives 24/7 instant funding. TransPecos Banks funds 95% of loads same-day.
Incomplete MC or DOT info causes 50% of delays. Check authority numbers first.
Top 5 Factoring Companies for Hot Shot Trucking
Top 5 factoring companies suit hot shot trucking. They offer 90%+ advances, non-recourse options, and fuel cards.
Rankings come from TruckSmarter and OTR data. Key factors include 95%+ advances, same-day funding, and 4.8/5 owner-operator reviews.
- Triumph: Best non-recourse and Visa Debit payouts
- BlueVine: AI-powered instant funding
- Others: Fuel savings and 24/7 service for hotshot loads
Sign up fast via mobile app. They handle BOL invoices and rate cons from brokers.
Small carriers see 30-50% better cash flow. They fund up to $2M monthly with no reserves or hidden fees.
Profiles below cover pricing, managers, and tools like DAT One. These help with spotty loads.
Triumph Business Capital
Triumph Business Capital advances 95% on hotshot loads. They offer non-recourse factoring and dedicated account managers for 24/7 submissions.
Approval rate hits 98%. They fund $2M monthly for small carriers, per TruckSmarter.
Owner-operators love Visa Debit payouts. Funds arrive fast, skipping bank waits on verified MC/DOT loads.
- Fuel discounts from partner networks
- Flat rates, no hidden fees
- App sign-up and 1-day onboarding
A Texas owner-operator said, Saved $12K/year on fuel. Grew from one truck to a small fleet.
Triumph fits hot shot trucking. Same-day funding keeps cash flowing for fuel, repairs, and bids.
Non-recourse option beats recourse. It shields against broker defaults.
Integrates easily with Outgo Inc and TransPecos Banks. Smooth BOL processing follows.
Clear pricing gives up to 100% of invoice value after fees. Perfect for hotshot's uneven schedules.
BlueVine
BlueVine offers smart factoring. It includes automated invoicing and a mobile app.
Owner-operators get instant funding up to $250K lines via DAT One. Gurley All Freight grew from 5 to 15 trucks with 90% advances.
They saw a 40% cash flow boost and $500K funded in Q1. AI credit checks speed up approvals for hotshot loads.
BlueVine shines with no reserves and same-day funding. This beats Triumph's Visa Debit focus.
Key pros include:
- A faster mobile app for invoice submission.
- Flat rates from 0.5%.
- Fuel card options.
Cons cover slightly lower advances than Triumph's 95%. It also has recourse factoring for some high-risk brokers.
BlueVine links to load boards like DAT One. Use it for RateView Analytics on rate cons.
Owner-operators love the 24/7 customer service. It resolves BOL disputes fast.
A Midwest trucking company said, Turned 45-day waits into next-day cash. Funded 20 extra loads quarterly.
Small carriers get working capital without long-term contracts. BlueVine offers clear pricing and non-recourse options for established MC DOT numbers.
Company Comparison Table
This table compares 6 top factoring companies. It covers key metrics for hot shot trucking.
Hotshot drivers need fast cash for fuel and repairs. They haul urgent loads.
Key terms include:
- Advance rates: Cash upfront, often 90-97% of invoice value.
- Funding speed: From instant to 24 hours.
- Fees: Flat rates per invoice.
- Fuel cards cut costs on runs.
- Mobile apps ease invoice submission with BOL uploads.
Non-recourse factoring lets the company handle broker credit risks.
| Company | Advance Rate | Funding Speed | Fees | Fuel Card | Mobile App | Best For |
|---|---|---|---|---|---|---|
| Outgo Inc | 97% | Same-day | 1.5% | Yes | RTS Pro app | Hotshots |
| OTR Solutions | 94% | 24 hours | 2% | Yes | Blynk payment | Brokers |
| TransPecos Banks | 92% | Instant | 1.8% | Visa Debit | Yes | Small carriers |
| Apex Capital | 93% | 4 hours | 2.2% | Yes | Yes | Owner-ops |
| TAFS | 90% | Same-day | 2.5% | Yes | Yes | Brokers |
| TBS Factoring | 95% | 24 hours | 1.9% | No | Yes | Startups |
Outgo Inc leads with a 97% advance rate and same-day funding. Hotshot truckers love it for urgent hauls.
OTR Solutions gives 94% advances. It excels in customer service for broker disputes.
Drivers pick Outgo for max cash in non-recourse factoring. Drivers choose OTR for strong account support.
Hot shot truckers should compare flat rate fees to fuel discounts. Outgo's 1.5% fee pairs with card savings of 10-15% at pumps.
TransPecos Banks offers instant funding via Visa Debit. Small carriers use it for MC DOT checks or DAT One fees.
Check for clear pricing and no hidden fees at sign-up. Keep your cash flow steady.
How to Apply for Factoring
Apply online in 15 minutes. Upload MC DOT authority, 2 recent BOL invoices, and rate cons for instant pre-approval.
Hot shot owner-operators face delays from slow brokers. Freight factoring delivers quick cash.
Gather your MC number and DOT authority from FMCSA. It takes just 5 minutes.
This confirms trucking company compliance. Skip upfront checks to avoid delays with the factoring company.
Sign up fast on the Outgo Inc portal from RTS Financial. It takes 3 minutes for basics like business name, EIN, and bank details.
Submit invoices via the RTS Pro mobile app. Do it in under 2 minutes for hotshot loads.
Factoring companies check customer credit. They approve in 30 minutes.
Get same-day ACH funding. Expect 90-95% advances with no reserves on non-recourse plans.
Use DAT One tools for rate cons (rate confirmations) checks with RateView Analytics.
- Gather docs like MC/DOT authority via FMCSA site (5 min).
- Quick sign-up on Outgo Inc portal (3 min).
- Submit via RTS Pro mobile app (2 min).
- Credit check and approval (30 min).
- First funding via same-day ACH.
Trucker often miss rate cons. This delays processing by 70%.
Always include rate cons. They prevent recourse factoring risks.
Try TransPecos Banks for clear pricing. Get flat rates, Visa Debit for fuel discounts, and no hidden fees.
Alternatives to Factoring
Factoring alternatives exist for hotshot truckers. Each has trade-offs.
- Recourse factoring and DAT One bidding: 25% slower funding, 15% higher costs.
- Bank loans: 3-5% APR but 70% advances and 30-day approvals.
- TAFS fuel cards: 5% discounts but no invoice cash.
- AltLINE merchant cash: Fast access but 20% fees.
- DAT One Pro load boards: $35/month, better load matching.
OTR Solutions factoring beats alternatives. Non-recourse plans win for truckers.
Get up to 92% advances with same-day funding. Submit via mobile app.
A hotshot hauler with $50,000 BOL invoices gets $35,000 upfront from Apex Capital. No reserves or bank delays.
Recourse plans risk repayment if customers delay. Non-recourse offers clear pricing.
RTS Financial factoring shows strong ROI. It offers 92% advances vs 60% alternatives.
Hotshot truckers gain 20-30% better monthly returns. Skip merchant fees and subscriptions.
Smart perks include:
- Visa Debit for expenses.
- RateView Analytics for rate cons.
Small carriers switch from TransPecos Banks waits or Outgo Inc limits. They get automation from Thunder Funding.
Pros and Cons: Factoring vs Alternatives
| Option | Pros | Cons | Best For |
|---|---|---|---|
| Bank Loans | Low 3-5% APR, long terms | 70% advances, 30-day approval | Stable trucking companies |
| Fuel Cards (TAFS) | 5% fuel discounts, easy access | No invoice cash, limits spending | Fuel-heavy hotshot loads |
| Merchant Cash Advances (AltLINE) | Fast funding, no credit checks | High 20% fees, daily repayments | Urgent working capital needs |
| Load Boards (DAT One Pro) | $35/mo, faster payments via loads | Subscription cost, bidding time | Owner operators seeking loads |
| Non-Recourse Factoring | 92% advances, same-day funding | Factoring fees, customer approval | High-volume small carriers |
Factoring companies like TBS Factoring and eCapital shine in advance rates and speed. They top the list for hot shot trucking cash flow.