Getting paid fast is a priority for any trucking company, especially when you’re still finding your footing. But when it comes to choosing a factoring partner, speed alone shouldn’t be the deciding factor. There’s a difference between a company that cuts checks and one that actually helps you grow. The best factoring relationships go beyond cash flow. They offer guidance, tools, and support that keep your business running smoother every day.
In Episode 4 of the Miles and Mentors Podcast, Rob McCutcheon, Vice President of Strategy and Growth at TAFS, broke down what really matters when evaluating a factoring partner. Rob has worked with thousands of small carriers and owner-operators, and he’s seen both sides — what happens when people rush into the wrong deal, and what it looks like when they choose wisely.
This article highlights what to look for in a factoring company, with practical advice to help you avoid red flags and build relationships that support your long-term success.
Experience in the trucking industry matters
Not every factoring company understands trucking. Some are general financial providers that treat every invoice the same, regardless of industry. But Rob emphasized that trucking is different. It moves fast, involves multiple parties, and relies heavily on timing, paperwork, and communication. A factoring partner that doesn’t understand those dynamics is more likely to frustrate you than help you.
Rob encourages carriers to look for companies that specialize in freight. If they’ve been serving carriers for years, they’ll understand the realities of detention pay, quick pays, broker relationships, and the day-to-day pressures of running a small fleet. That kind of experience translates into fewer issues, faster resolutions, and better tools built for the way you work.
Transparency protects you in the long run
One of the biggest mistakes Rob sees new carriers make is not reading the fine print. They’re focused on getting paid fast and don’t always ask the right questions about fees, terms, or exit clauses. Some companies advertise low factoring rates but make up the difference with hidden charges like monthly minimums, credit check fees, transaction charges, or early termination penalties.
Rob’s advice is simple. Ask for a clear breakdown of the cost structure. Make sure you understand what happens if a customer pays late or if you need to factor fewer invoices than expected. If the company can’t explain things plainly, that’s a red flag. You’re entering a financial partnership. Clarity should be part of the deal.
Support and service should be part of the package
Factoring isn’t just about financing. It’s also about service. Rob pointed out that the best factoring companies act like an extension of your back office. They help verify credit on brokers, track payments, chase down collections, and make sure your paperwork is in order. That frees you up to focus on running and growing your business.
Rob recommends looking for companies that offer 24/7 support, real human contact when you need it, and a dedicated account rep who knows your operation. When things go wrong — and in trucking, they sometimes will — you want someone who picks up the phone, not just an online portal.
Extra benefits can make a good deal even better
While cash flow is the core of factoring, Rob emphasized the value of the extras. Some factoring companies provide fuel cards with built-in discounts, compliance services to help keep your authority in good standing, or access to business consulting. These extras can help small carriers punch above their weight.
Rob made it clear that TAFS, for example, doesn’t just process invoices. They offer tools that make it easier to run the business. That includes flexible funding options, transparent terms, and experienced reps who can guide you through decisions beyond just factoring. When you’re building a business, those resources matter more than a slightly lower rate.
Reputation and relationships still count
In an industry where everyone is selling something, trust still matters. Rob advises carriers to check reviews, ask other carriers for recommendations, and look for partners who’ve been around long enough to prove they can weather the ups and downs of the market.
You don’t want to switch factoring companies every six months. Each time you do, it disrupts your cash flow and adds complexity. Rob’s advice is to take the time upfront to choose someone you can grow with. The right factoring company isn’t just a service provider. It’s a strategic partner that helps stabilize your business and keep you moving forward.
Need more mentor advice?
Choosing a factoring partner is more than picking who pays you fastest. It’s about finding a company that understands trucking, supports your goals, and gives you the confidence to operate without second-guessing your finances.
At Miles and Mentors, we believe that relationships, like revenue, should be built with intention. If you’re looking for help evaluating factoring partners or want to connect with trusted providers like TAFS, fill out the form below. Or subscribe to the podcast to keep learning from voices like Rob McCutcheon, who’ve helped countless carriers make smarter financial decisions.
