Love's Financial Acquires Three More Freight Factoring Companies

Love’s Financial Acquires Three Freight Factoring Companies

Love’s has expanded its financial services business by acquiring three freight factoring providers. This deal strengthens Love’s Financial and adds more invoice funding options for trucking companies.

The companies acquired were TBS Factoring Services, Saint John Capital, and Financial Carrier Services. These firms operate in Oklahoma City, Oklahoma; Chicago, Illinois; and Charlotte, North Carolina.

The acquisition closed on December 19. Love’s did not disclose the financial terms of the agreement.

Love’s Statement on the Factoring Acquisition

The company said the move supports its long-term plan to expand services for trucking businesses. The focus is on owner-operators and small- to mid-sized fleets. These groups often face long waits for invoice payments.

“Love’s is committed to growing strategically as a trusted partner to meet professional drivers, owner-operators and fleets where they are, and providing fast and reliable freight factoring services is an important part of that vision,” said Shane Wharton, Love’s president. “We’re excited to welcome our new customers and Love’s Financial team members while learning from their factoring experience.”

Love’s Financial Customers and Service Continuity

The company stated that about 3,400 customers will move to Love’s Financial as part of the deal. These customers previously worked with the three factoring firms.

According to Love’s, customers should not see funding delays during the transition. Factoring services are expected to continue without interruption.

They also said customers may gain access to additional services across its nationwide travel stop network. These include fuel discounts and access to a no-fee credit line through the Love’s Express Billing card program.

Love’s Truck Care and Added Fleet Services

Customers may also qualify for discounts at Love’s Truck Care locations. These locations offer several services used by trucking fleets.

Services include tire sales, emergency roadside assistance, light mechanical repairs, lube services, and preventive maintenance. The company said these offerings are part of its effort to support fleets beyond fuel and parking.

Love’s Financial’s Role in Trucking Operations

Love’s Financial is part of a larger shift toward providing full-service support for trucking companies. Over time, they have expanded into maintenance, roadside service, and fleet payment tools.

Factoring services fit into this model. Many trucking companies rely on factoring to manage cash flow. This is especially true for smaller fleets with limited access to credit.

Long payment cycles remain common in trucking. Waiting 30 to 45 days for an invoice to be paid can create financial strain.

Basics of Truck Factoring

Truck factoring allows carriers to receive payment soon after delivering a load. Instead of waiting weeks, the carrier sells the invoice to a factoring company.

After delivery, the carrier submits the invoice. The factoring company reviews the paperwork and confirms the load. Once approved, most of the invoice value is advanced, often within 24 hours.

The factoring company then handles billing and collections. When the invoice is paid, a service fee is deducted.

Common Factoring Costs

Factoring comes with fees. These fees are usually a percentage of the invoice amount.

In many cases, fees range from about 1% to 6%. Rates depend on customer credit, invoice size, and the factoring agreement.

While factoring improves cash flow, fees can reduce profit over time. This is why carriers often compare providers before choosing a factoring partner.

Recourse vs. Non-Recourse Factoring

There are two main types of factoring agreements used in trucking.

With recourse factoring, the carrier is responsible if the customer does not pay. Because the risk is lower for the factoring company, fees are often lower.

With non-recourse factoring, the factoring company assumes certain non-payment risks. This option usually costs more. Some carriers choose it for added protection.

Both options are common across the industry.

Why Many Carriers Use Factoring

Trucking comes with steady expenses. These include fuel, maintenance, insurance, food, and lodging. Delayed payments can make these costs harder to manage.

Factoring provides more predictable cash flow. Carriers know when funds will arrive. This helps with planning and day-to-day operations.

Factoring can also reduce paperwork. The factoring company handles invoicing and collections. This can save time and lower stress.

Love’s Acquisition and Industry Impact

The acquisition highlights a broader trend in trucking. Large service providers are expanding into financial services.

Travel stop chains are offering more than fuel and parking. Maintenance, roadside help, and payment tools are now part of the mix. For carriers already using Love’s locations, combining these services may offer added convenience.

RELATED: Love’s Media Group Is The Pioneering Retail Ad Network, More ELP Rules in Texas: Strong Warning for Truckers, More Nikola Hydrogen Trucks Coming to the Logistics Industry