The short answer
A trucking company with a brand-new MC number can factor its very first load. Factoring is not a loan to you. The factor buys your invoice and gets paid by the broker or shipper, so the credit that matters is the broker's, not yours. Thunder Funding's FAQ puts it plainly: because approval is "largely based on the credit quality of the broker being invoiced, startups and newly authorized carriers are often able to qualify" (Thunder Funding FAQ). TBS lists "No personal credit score minimum" among its non-recourse program terms (TBS Factoring), and OTR Solutions says there is no credit check to apply (OTR Solutions FAQ).
That is the opposite of how a bank line of credit works, which is why banks usually want two years of returns and a new carrier usually cannot get one. Our factoring vs. line of credit guide covers the difference. This page is about the practical question: what happens when a one-truck startup calls a factor, and what to watch for.
If you want the full setup walk-through for a new authority, including the FMCSA New Entrant program and how brokers vet new MCs, read freight factoring with a new authority. This page does not repeat it.
What a factor asks for on day one
The application is short because the factor is not underwriting you. Apex says it needs "a short factoring application, provide proof of your authority and your insurance" (Apex Capital FAQ). In practice, have these ready:
- Your MC and DOT numbers, active, with the FMCSA record showing your authority granted.
- A certificate of insurance showing liability and cargo coverage. The factor needs it because the broker will ask for it before tendering a load.
- A W-9 and a voided check so the factor can pay you by ACH or wire.
- Your first rate confirmation and a signed bill of lading once you have hauled a load. Thunder's FAQ lists the standard set: "Bill of Lading (BOL) or proof of delivery, rate confirmation, the freight invoice" (Thunder Funding FAQ).
- A notice of assignment that the factor prepares and sends to each broker, telling them to pay the factor instead of you.
Some factors also run a UCC search to confirm no one else has a lien on your receivables. For a brand-new company there is nothing to find, which makes setup faster.
What "no minimums" and "no contract" mean for one truck
Most factors that court new carriers advertise no monthly minimums and no long-term contract. Both matter more to a startup than to a fleet, and both deserve a second look.
No minimums means the factor will not charge you a fee for factoring too little. For a single truck that might run 8 to 12 loads a month and might sit for a week with a breakdown, that protection is real. Among the factors we profile, Apex publishes "No monthly minimum volume fees" (Apex Capital — Freight factoring), Riviera says "No monthly minimums" (Riviera Finance — Freight factoring), Triumph says "No Minimums/No Reserves" (Triumph — Carrier factoring) and BasicBlock says "No monthly minimums" (BasicBlock — Freight factoring). Viva Capital, Phoenix Capital Group and Factoring Express say the same on their freight pages.
Read the sentence after "no minimums", though. OTR Solutions has no monthly minimum but notes that once a broker is factored, that broker's invoices must be factored until the broker is released (OTR Solutions FAQ). That is a common rule: you can choose which brokers to factor, but not which loads from a factored broker. Apex is one of the few that says you are not required to factor every invoice (Apex Capital FAQ).
No contract usually means no fixed term, not no agreement. There is always a factoring agreement; the question is how long it binds you and what it costs to leave. The published terms vary widely:
| Factor | Published term | Source |
|---|---|---|
| Apex Capital | No long-term contract; no cancellation fee | Apex FAQ |
| Thunder Funding | 90-day agreement, then no long-term contract | Thunder FAQ |
| BasicBlock | No contracts; close the account any time | BasicBlock terms |
| Phoenix Capital Group | Month-to-month; no setup or termination fees | PCG FAQ |
| Riviera Finance | Six-month standard term, adjustable | Riviera FAQ |
| Bobtail | 90-day trial, then a long-term contract | Bobtail FAQ |
| Porter Freight Funding | One-year agreement | Porter FAQ (archived) |
A new carrier does not know yet what its lanes, brokers or volume will look like in six months. A short or month-to-month term keeps the option to change factors once you do. The company directory can be filtered to factors that publish no minimum, so you can compare those terms side by side.
The trade-offs a startup should expect
Factors say yes to new carriers because the broker pays, but a one-truck startup is still a smaller, riskier account than a fleet. That shows up in four places.
Rate tier. Published rates are usually tied to volume: Triumph says its rates "are based on the amount and volume of your loads" (Triumph — Factoring); BasicBlock publishes a flat 2.5% or less (BasicBlock); Factoring Express does not publish its own rate but cites an industry range of 1% to 5% (Factoring Express — Trucking). A single truck will not be at the bottom of any range. Ask for the rate at your realistic monthly volume, in writing, and run it through the factoring calculator.
Reserve. Many factors advance most of the invoice and hold the rest until the broker pays. Riviera publishes up to 95% (Riviera — Transportation factoring); Factoring Express up to 97% (Factoring Express); Phoenix 90% to 100% depending on the invoice (PCG — Freight factoring). Triumph and Saint John Capital advertise no reserve. A reserve is not a fee, but for a startup living load to load it is cash you do not have for 30 to 60 days.
Recourse. If the broker never pays, recourse factoring sends the invoice back to you. Non-recourse covers you for the broker's insolvency, but usually nothing else: Phoenix says its non-recourse covers bankruptcy or insolvency, not disputes (PCG FAQ), and Integra says it covers the insolvency of an approved customer, not slow payment (Integra FAQ). Thunder makes non-recourse its default (Thunder FAQ); TBS prices recourse lower because you carry the risk (TBS Factoring). Our recourse vs. non-recourse guide explains what the protection does and does not buy.
Broker credit checks that say no. The factor will not buy an invoice from a broker it does not trust. That is a feature, not a bug: Triumph says its broker checks tell you "what loads are preapproved for factoring" before you haul (Triumph — Carrier factoring), and Apex and BasicBlock publish free unlimited broker checks. But it means a load from a broker the factor declines is a load you must either skip or carry yourself. Check the broker before you accept the load, not after.
A first-90-days plan
- Before the first load. Compare factors on the freight factoring page or filter the directory to no-minimum factors, or answer three questions on the get-matched wizard and we will connect you with a factor that names trucking, serves your state and accepts your volume; the factor quotes your terms. Get the rate, advance, reserve, term and recourse definition in one email before you sign. Our contract guide lists the clauses to find.
- Week 1. Set up the factor's app or portal, send the notice of assignment to every broker you book, and run each broker through the factor's credit check before accepting.
- Weeks 2 to 8. Submit paperwork the day you deliver. Most same-day cutoffs are around midday; Thunder funds the same day if paperwork is in by 12 pm Pacific (Thunder FAQ). Track your effective rate per load, including any wire, advance or fuel-card fees.
- Days 60 to 90. Compare what you actually paid with what you were quoted, and with the published terms on the freight factoring page. If your factor has a 90-day term, this is when you decide whether to stay. If you switch, follow how to switch factoring companies so the buyout and notices do not interrupt your cash.
Frequently asked questions
Can I factor my first load before my authority is 30 days old?
Yes, as far as the factor is concerned. The factor is checking the broker's credit and your paperwork, not how long your MC has been active. The harder part is finding brokers who will tender a load to a new MC; that is a broker policy, not a factoring policy, and the new authority guide covers it.
Do I need good personal credit to factor?
Not for the factoring decision itself. TBS publishes no personal credit score minimum and OTR says there is no credit check to apply. Some factors do run a background check for fraud or outstanding liens, and a fuel credit line on a factor's fuel card may have its own approval.
Will the factor make me factor every load?
It depends on the agreement. Apex says clients are not required to factor every invoice. OTR lets you choose brokers but requires every invoice from a factored broker until that broker is released. Ask whether the agreement is whole-ledger, by broker, or by load.
What does a startup actually pay?
Published freight rates among the factors we profile run from about 1% to 3.5% of the invoice, usually tiered by volume, and a one-truck account sits toward the top of its factor's range. Add any reserve, wire fees and advance fees, then compare the total against the cash you would otherwise wait 30 to 60 days for. Use the calculator with the quote you are given, not the advertised minimum.