If you're a trucking business owner or owner-operator relying on freight factoring, you know how important reliable cash flow is. But what happens when your current factoring company no longer meets your needs? Whether it's slow funding, poor communication, or unexpected fees, switching factoring companies could be the right move to keep your business running smoothly. Here’s what to look for, how the process works, and how Single Point Capital can help ease the transition.
Signs It’s Time to Switch Factoring Companies
If you're considering switching, here are some common red flags:
- Delayed or inconsistent funding
- Lack of transparency in fees
- Limited access to customer service
- No value-added services (like fuel advances, insurance support, free credit checks, etc.)
- Rigid contract terms or hidden penalties
Staying locked into a factoring company that doesn't support your growth can limit your success. The good news? Making a switch doesn’t have to be complicated.
What to Look for in a New Freight Factoring Partner
When searching for a new factoring company, keep these key features in mind:
- Fast, Reliable Funding: Look for same-day or next-day funding options to keep your cash flow consistent
- Transparent Pricing: Avoid companies with vague fee structures. A trustworthy factoring company should clearly explain their rates and terms upfront.
- Dedicated Support: You deserve to work with a team that knows your business. Ask if you'll have a dedicated account rep and whether bilingual support is available if needed.
- Added Services: Beyond factoring, the best companies offer tools to help you grow—like fuel cards, dispatching support, and insurance assistance.
- Flexible Contracts: Watch for long-term commitments and automatic renewals. The best partners offer fair, flexible agreements that put your business first.
How the Switching Process Works
Switching factoring companies might sound overwhelming, but when you find the right company to switch they can make the process more straightforward than most expect. Here’s how it generally works:
Review Your Current Agreement: Check your termination clause, required notice period, and any early termination fees. This helps you plan your exit strategy.
Get a Payoff Letter: Request a payoff statement from your current factoring company showing any outstanding advances. In many cases, your new factoring company can also buy out your existing open invoices from your current factor, helping you transition smoothly without disrupting your cash flow.
Submit Application to New Factor: Apply with your new factoring partner. They’ll typically perform a credit check on your customers and assess your business. A good factoring partner will have a dedicated team to assist you throughout this process.
Transfer Account Debtors: The new factor will send a “Notice of Assignment” to your brokers or shippers, redirecting payments to their system.
Begin New Funding: Once set up, you can start submitting invoices and receiving fast funding—often within the same day.
How Single Point Capital Makes Switching Easy
Our team of industry experts specialize in making transitions simple and stress-free for trucking professionals. Here’s how we help:
Personalized Support from Day One: You’ll start by working with a personal Business Development Rep who will guide you through the application and buyout process. Next, our onboarding team walks you through every step of getting started—no confusion, no pressure. Once you’re set up, you’ll be introduced to your dedicated Account Rep, who will work with you one-on-one throughout your partnership with us. We’re here to make sure you always have the support you need—every step of the way.
Fast Funding with No Hidden Fees: We offer same-day funding, transparent terms, and no surprise charges. From the start, we walk you through exactly how our pricing works—so you’ll always know what to expect. No fine print, no guesswork—just honest, upfront communication.
Added Perks to Keep You Rolling: From fuel advances and discounts to dispatching support and insurance down payment assistance, we’re more than just a factoring company—we’re your platform for expansion.
Flexible Contracts: We earn your business every day. Our contracts are designed and customized to work for you and your business—not tie you down or set you back. From day one our team of industry experts work to get you the most competitive rate and bundled offers.
Ready to Make the Switch?
If you're ready to work with a factoring company that puts your needs first, Single Point Capital is here to help. We’ll handle the details, guide you through the transition, and make sure you never miss a beat—or a payment. Learn more about switching and get started with a free consultation.