Best Factoring Companies for New Authorities (MC < 6 Months)
If your MC number is less than 6 months old, compare eligibility, costs and contract terms before choosing a factoring provider. The checklist below helps you request comparable written quotes.
The 3 things that actually matter for a new authority
Accepts brand-new MCs
Some factors require 6–12 months of MC history. Rule out the ones that will reject you before you apply.
Real funding speed
'Same day' with a 3-day first-invoice review isn't same day. Ask what happens on invoice #1.
True all-in cost
Sticker rate + reserves + ACH fees + termination penalty = the number that matters. Get all four in writing.
Side-by-side comparison
Current rates and contract terms have not been verified here. Request a binding quote and agreement from each provider.
| Provider | Rate | Funding | New MC OK | Reserves | Contract |
|---|---|---|---|---|---|
| ELD HUB partner offersPartner offer | Request a written quote | Subject to verification | Confirm eligibility | Confirm reserve terms | Review agreement and fees |
| TAFS | Request a written quote | Subject to verification | Confirm eligibility | Confirm reserve terms | Review agreement and fees |
| Apex Capital | Request a written quote | Subject to verification | Confirm eligibility | Confirm reserve terms | Review agreement and fees |
| RTS Financial | Request a written quote | Subject to verification | Confirm eligibility | Confirm reserve terms | Review agreement and fees |
| TBS Factoring | Request a written quote | Subject to verification | Confirm eligibility | Confirm reserve terms | Review agreement and fees |
| Bank line of credit | Request a written quote | Subject to verification | Confirm eligibility | Confirm reserve terms | Review agreement and fees |
Questions to ask before accepting a partner offer
- How is the factoring rate calculated, and what other fees apply?
- When can a verified invoice fund, including the first invoice?
- Which risks are covered by recourse or non-recourse terms?
- Are reserves, transfer fees or monthly minimums required?
- What notice period, cancellation fees and UCC release steps apply?
- What broker-credit checks and collections services are included?
Contract details worth checking
- Confirm whether funding claims include the onboarding and first-invoice review period.
- Compare the fee calculation basis and any additional transfer fees; reserve cash is distinct from a fee.
- Check renewal dates and the exact written cancellation notice requirement.
- UCC releases and intercreditor arrangements may be needed when switching providers.
Frequently asked questions
Can a new authority apply for freight factoring?
New carriers can explore factoring, but each provider has its own eligibility, underwriting and broker-credit criteria. Approval is not guaranteed.
What is the real factoring cost?
Request the rate, calculation basis, reserve requirements, transfer fees, minimums and cancellation terms in writing. A reserve is generally held cash, not automatically an additional fee.
What does non-recourse cover?
Covered risks depend on the agreement. Non-recourse may cover specific credit events on approved debtors, not disputes, fraud or every unpaid invoice. Compare the exclusions before signing.
How fast can my first invoice fund?
Timing depends on onboarding, invoice and delivery verification, broker approval, submission cutoffs and banking hours. Confirm first-invoice timing with the provider.
What documents are required?
Ask the provider for its current checklist, which may include authority details, business tax identification, banking information, W-9 and invoice documents. Additional underwriting material may be required.
Does factoring affect borrowing?
Factoring is different from a conventional loan, but agreements, guarantees and UCC filings can affect other financing. Discuss the arrangement with your lender and financial advisor.
Can I switch factoring providers?
Check notice periods, remaining commitments, outstanding invoices, UCC releases and any intercreditor arrangements. ELD Hub’s no-contract software offer does not determine a factoring provider’s contract terms.
Ready to factor your first load?
Request a partner quote and review rates, funding timing and contract conditions. Approval and pricing depend on your business and invoices.