Factoring vs Net-30 for Dump Truck Invoices: When Factoring Pays
Factoring costs 2–4% of gross. Worth it only if you have 30+ days of cash gap and a truck payment due. If you have 60 days of reserves, Net-30 direct beats factoring every time.
Factoring feels like free money the first month and expensive money the twelfth. Run the numbers before you sign a 12-month contract.
The three factoring companies dump truck operators use
| Company | Advance % | Fee | Contract | Best for |
|---|---|---|---|---|
| RTS Financial | 95–97% | 1.5–3.5% | Month-to-month available | Newer operators, flexible |
| Apex Capital | 95% | 1.5–3% | 12-month typical | Larger fleets, best rates at scale |
| OTR Solutions | 97% | 2–4% | Month-to-month | One-truck ops with mixed customers |
When factoring makes sense
- You're running Net-30 GC invoices and can't cover next week's fuel
- Truck payment is due before your biggest customer pays
- You have <2 months of operating reserves
When Net-30 direct is cheaper
If you have 60+ days of reserves, factoring at 2.5% is a $6,000/year expense on $240k gross. That's a payment on truck #2. Build the reserve, kill the factor.
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