RTS vs TBS Factoring: Comparing Two Trucking Factoring Companies

You've done the math on factoring and decided it fits your operation. Now you're comparing companies and trying to figure out if RTS Financial or TBS Factoring Service is the right fit. Both are established freight factoring companies that work with owner-operators and small fleets. But they're not the same product, and the differences matter depending on your volume, your authority age, and how you want to run your relationship with a factoring partner.

This article breaks down what each company offers and where they differ.

A Quick Note on Rates

Neither RTS nor TBS publishes a single flat rate online — factoring rates are typically negotiated based on your volume, the brokers you haul for, your authority history, and whether you want recourse or non-recourse terms. The industry-standard range for freight factoring is roughly 1% to 5% of invoice value. Anything you see published as a "typical rate" for either company should be treated as a starting point for conversation, not a guarantee.

When you request a quote, ask specifically:

• What is the factoring rate on my invoice volume?
• What is the advance rate (how much comes to me upfront)?
• What is the reserve amount and how long before it's released?
• What fees exist beyond the factoring rate itself?

RTS Financial

RTS Financial (also known as RTS Carrier Services) is one of the larger freight factoring companies operating in North America, with a history of serving both small carriers and mid-size fleets. They offer a range of services beyond straight invoice factoring.

What RTS is known for:

• Fuel card program: RTS offers its own fuel card — the RTS Fuel Card — which gives discounts at certain truck stops. For carriers with high fuel spend, this can partially offset factoring costs.
• Load board access: RTS customers can access load board integrations as part of their service package.
• Credit checking: RTS provides broker credit checks before you accept a load, which helps avoid hauling for brokers who are slow to pay or have creditworthiness issues. This connects directly to how you can manage customers and payment history within your own operation.
• Scale: RTS handles a high volume of carriers. That can mean efficient back-office processing, but it also means your account may be one of thousands.

Potential drawbacks to ask about:

• Contract length and early termination terms
• Minimum monthly volume requirements (if any)
• Fees beyond the headline rate (ACH, wire, mailing, credit checks per broker)
• How they handle recourse when a broker is slow vs. when they actually default

TBS Factoring Service

TBS Factoring Service (formerly Transport Business Services) is based in Oklahoma City and has been serving small carriers and owner-operators for decades. Their positioning leans toward the smaller end of the trucking market — one- to five-truck operations where personalized service matters.

What TBS is known for:

• No long-term contract lock-in: TBS has historically offered month-to-month or flexible contract terms rather than requiring a 12-24 month commitment. This is significant if you're not sure how long you want to use factoring, or if your situation might change.
• Smaller-fleet focus: TBS is designed for owner-operators and small fleets rather than mid-market carriers. If you're a solo operator or running a couple of trucks, you're closer to their core market.
• Quick funding: Like most factoring companies, TBS aims for same-business-day or next-business-day funding after invoice submission.
• Non-recourse options: TBS offers non-recourse factoring for qualifying invoices and brokers, which protects against certain credit events.

Potential drawbacks to ask about:

• Rates for low-volume accounts compared to higher-volume carriers
• Which brokers qualify for non-recourse protection and what events trigger it
• Fuel card access and whether they partner with a fuel network

Key Comparison Points

This table is based on publicly known positioning; verify current specifics with each company directly before signing.

The Questions That Actually Decide It

Don't choose a factoring company based on branding or reputation alone. The contract details matter more than the company's size. Here's what to ask both companies in the same conversation:

Volume and rates:

• What rate do I qualify for at my current monthly invoice volume?
• Does the rate improve if my volume increases?
• Is the rate different for recourse vs. non-recourse?

Cash flow mechanics:

• What is the advance rate (what percentage do I receive immediately)?
• How is the reserve structured and when does it release?
• How do I submit invoices — online portal, email, or mobile app?

Contract terms:

• What is the minimum term? What's the early termination fee?
• Is there a minimum monthly volume? What happens in slow months?
• What is the notification process for my brokers?

Credit and collections:

• How do you handle a broker who is slow to pay but not in default?
• What specifically triggers non-recourse protection?
• Can I see a sample fee schedule before signing?

When Factoring vs. Invoice Management Is the Better Answer

Factoring solves the cash-flow gap between delivery and payment. But for some operations — particularly those with established broker relationships and decent cash reserves — tighter invoice management is a cheaper fix than a factoring contract.

If your brokers pay on net-15 or net-30, or if a handful of your brokers offer quick-pay programs, you may be able to close the cash flow gap without paying a factoring fee on every load.

Invoicing that generates instantly from load records — with rate confirmation data already in the system — gets invoices out the day of delivery instead of at the end of the week. That alone can compress the payment cycle by a week or more without giving up a percentage of every invoice.

Expense tracking and customer management give you a live view of cash in vs. cash out, and which brokers are running past their terms — so you're making informed decisions about which loads to take and whether factoring makes sense broker by broker, rather than committing your whole book.

Which One Should You Choose?

If you need a fuel card bundled into your factoring relationship and you're running a higher volume of loads, RTS Financial is worth evaluating seriously. The combined fuel discount and factoring relationship can simplify your financial stack.

If you're a smaller operation — one to three trucks — and want flexibility without a long contract commitment, TBS Factoring Service's positioning toward owner-operators and its historically flexible contract terms make it a natural starting point.

In either case, get quotes from both (and from one or two others — the market has many factoring companies) before signing. Factoring contracts are not short-term decisions, and the fee structure you negotiate now will shape your margins on every load you haul through the contract period.

Truck Command for Cash Flow Visibility

Whether you're using a factoring company or not, keeping clear records of what's owed, who's paid, and where each invoice stands gives you control over your cash flow instead of reacting to it.

Truck Command tracks loads, generates invoices, and gives you a payment history per customer so you know which brokers pay on time and which run late. That visibility helps you decide when factoring is worth the cost and when your own invoicing process can close the gap without a fee.

Plans start at $20/month with a 14-day free trial, no credit card required.