How to Compare Freight Factoring Companies
Every factoring company advertises fast pay and low rates. The differences that actually change what you keep per load live in the fee schedule: what the quoted rate assumes, how much is advanced, when payment is issued, what minimums apply, and how hard the contract is to leave. This page gives you the eight questions to ask any factor, alongside MJN Services' published answer to each one.
For deeper dives, see our full rate schedule, the factoring cost calculator, and the quick pay comparison.
The Eight-Question Comparison Checklist
| Criterion | What to ask any factor | MJN Services' published answer |
|---|---|---|
| Factoring rate | Is the rate variable or flat? What volume or term does the quoted rate assume, and is the full fee schedule published in writing before you sign? | Variable from 1.5%, or a flat 3% for 60 days. Every rate is published in writing before signing. First 30 days free for new accounts. |
| Advance rate | What percentage of the invoice do you receive up front, and what triggers a lower advance? | Up to 95% of invoice face value, depending on shipper credit, load volume, and invoice aging. The reserve is released when the shipper pays, less the factoring fee. |
| Payment speed | When does the factor issue payment, and is there a submission cutoff? (A factor controls when it sends payment, not when your bank posts it.) | Submit by 1:00 PM MST on delivery day and MJN issues your ACH the same day. Later submissions are paid the next business day. |
| Monthly minimums | Is there a minimum monthly fee or volume commitment, and when does it start? | No minimum for the first 90 days. After the initial period a $200 monthly minimum applies. Stated in the agreement, not discovered later. |
| Contract length and exit | How long is the initial term, what notice does cancellation require, and is there an early termination fee? | 90 days initial term, cancellable inside that window with no penalty. Afterward, 30 days written notice. No long-term lock-in. |
| Recourse terms | Is the arrangement recourse or non-recourse, what is the recourse period, and which debtors qualify for non-recourse? | Recourse with a 60 days period, working from pre-approved shippers. Non-recourse is available for approved debtors in cases of shipper bankruptcy. |
| Fees beyond the rate | Are there ACH fees, invoice processing fees, credit check fees, or setup fees on top of the quoted rate? | No ACH, credit reporting, or invoice processing fees. The published rate schedule is the complete cost. |
| Loads and funding together | Does the factor also broker freight, or will you manage separate load and funding relationships? | MJN is a licensed freight broker (since March 2000) and a factor: carriers can haul MJN loads and factor the same invoice with one company, with no cross-company verification delay. |
MJN's answers above are the published terms; see the rate schedule for the complete list. Rates are published in writing before you sign.
Why Size of Factor Matters for Small Carriers
Large national factors are built around volume: automated portals, account managers who change, and terms tuned for fleets. For owner-operators and small fleets, the practical questions are different: can you reach a person who knows your account, will a single slow-paying shipper trigger penalties, and does the factor understand loads like yours.
MJN Services has factored for small carriers since it began brokering freight in March 2000. The same family that founded the company still answers the phone, and because MJN is also a licensed freight broker, carriers can haul MJN loads and factor the same invoice through one relationship. Our guides on choosing a factoring company as a trucker and the seven factors that matter most walk through the decision in more detail.
Comparing Factoring Companies: Common Questions
How do I choose the best freight factoring company for a small carrier?
Compare on published numbers, not marketing claims: the factoring rate and what it assumes, the advance rate (up to 95% at MJN Services), payment timing and cutoffs, monthly minimums, contract length, and recourse terms. A factor serving small carriers should publish its full fee schedule in writing before you sign and answer the phone with a person.
Which factoring companies pay the same day?
Ask exactly when the factor issues payment and what the cutoff is. At MJN Services, invoices submitted with paperwork by 1:00 PM MST on delivery day are paid by ACH the same day; later submissions are paid the next business day. Note that when funds post to your account also depends on your own bank's processing.
Is there freight factoring without monthly minimums?
Most factors have some minimum; the honest question is how large it is and when it starts. MJN Services has no monthly minimum during the first 90 days; after that initial period a $200 monthly minimum applies, stated in the agreement up front.
What is the difference between quick pay and factoring?
Quick pay is a per-broker program: each broker sets its own fee and timing, and it only covers that broker's loads. Factoring covers invoices across your customers with one fee schedule. MJN factors at 1.5% variable or 3% flat with advances up to 95%. See our quick pay comparison page for a side-by-side breakdown.
What fees are easy to miss when comparing factoring companies?
Setup fees, ACH transfer fees, credit check fees, invoice processing fees, minimum monthly fees, and early termination fees. Ask for the complete schedule in writing. MJN Services charges no ACH, credit reporting, or invoice processing fees, and publishes every rate before you sign.
Is non-recourse factoring worth it for trucking?
Non-recourse shifts specific risks (typically shipper bankruptcy) to the factor, usually at a higher rate. For carriers hauling for credit-checked, pre-approved shippers, recourse factoring with a solid vetting process often costs less in practice. MJN offers recourse terms with a 60 days period and non-recourse for approved debtors in bankruptcy cases.
Compare Us Against Anyone.
Ask any factor the eight questions above, then call MJN and ask us the same ones. Rates from 1.5%, advances up to 95%, first 30 days free, and a person answers the phone.