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Factoring With No Minimums and No Long-Term Contract: What Each Company Actually Says

By The Trucking Factoring Guide editorial team · How we check
Published October 26, 2026 · Fact-checked October 26, 2026

Disclosure: We don't currently earn money from any company mentioned on this page, and links to companies go to their official sites with no tracking. We may earn referral fees from some companies in the future; if we do, we'll label those links and update this notice. Payments will never change what we write, and when a fact comes from a company's own website, we say so.

If you've been burned by a factoring contract, or you just don't want to be tied down, you'll see "no contract" and "no minimums" all over factoring ads. Those phrases mean different things, and neither one means "no strings." This guide quotes what six factoring companies say on their own websites, then lists the fine print to check before you sign. Every company fact below was checked on October 26, 2026.

Three different promises

A factor can offer one of these without the others. Ask about all three.

What each company says on its own site

Company Contract and leaving Minimums Source
DAT Outgo "No annual contracts and no cancellation fees"; cancel with 15 days' notice after a buyout of open invoices "No minimum fees"; reviews your volume tier quarterly outgo.dat.com/rates
Apex Capital Says it doesn't "lock clients into long-term contracts, nor do we charge any monthly fees or cancellation fees" No monthly minimum volume fees Apex FAQ and factoring page
Porter Freight Funding Recourse: 1-year, 6-month or month-to-month. 1-year agreement: "no termination fees with 60 day notice" No minimum for 1–2 truck companies; larger fleets not published Porter application page and 1.5% rate page
Triumph Term and termination not published "No minimums" triumph.io factoring page
OTR Solutions Uses a factoring agreement; term, notice and fee not published "No monthly volume minimums" OTR FAQs
RTS Financial Not published Not published RTS FAQs

"Not published" means we couldn't find it on the company's site on the date we checked. It doesn't mean the term is good or bad. Ask for it in writing. The comparison grid has every company's published terms with links.

The strings that can still come attached

1. You may have to factor all of a broker's invoices

Apex says once you factor a customer, you factor all of that customer's invoices. OTR says that once you factor a broker, that broker's later invoices must be factored until a release is provided. That's normal, but it means "pick and choose" usually applies broker by broker, not load by load.

2. Exclusivity

OTR's switching guide says "most factoring agreements include exclusivity clauses." Even a no-contract factor will usually be your only factor while you're with them.

3. Notice still matters

Porter's no-fee exit on its 1-year agreement depends on giving 60 days' notice. OTR's FAQ says many contracts require written notice "30, 60, or 90 days before the renewal date." Find out how notice has to be sent, too. Our red-flag guide has a sample notice letter.

4. The lien and the Notice of Assignment don't disappear on their own

Even with no contract, your factor files a UCC-1 and sends your brokers a Notice of Assignment. When you leave, you still need release letters and a UCC termination. That's covered step by step in how to switch factoring companies.

5. Flexibility can be priced in

DAT Outgo is the only company in our grid that publishes a rate card: 3% under $18,000 a month of invoices, 2.5% from $18,000 to $80,000, and custom pricing above that, plus a $20 wire fee (ACH free). Porter's 1.5% intro rate, by contrast, is tied to a 1-year recourse contract with a 95% advance, for the first 60 days only, and doesn't apply to sprinter vans or box trucks. Porter doesn't publish its rate after the intro period. A lower rate with a longer contract can still cost more than a higher no-contract rate if you leave early or have slow months.

Worked example (illustrative numbers only)

These numbers are made up to show the math. They aren't any company's terms.

You factor about $20,000 a month, but some months drop to $8,000 when the truck's in the shop.

In a normal month, A costs $500 and B costs $600. In a slow month, A costs $200 + $250 = $450 and B costs $240. With two slow months a year, A costs 10 × $500 + 2 × $450 = $5,900 and B costs 10 × $600 + 2 × $240 = $6,480. A is cheaper, as long as you stay the full year. If you leave A after six months (with one slow month in that time), A costs 5 × $500 + $450 + $1,000 fee = $3,950, while B costs 5 × $600 + $240 = $3,240 for the same six months.

Put your own quotes in the Factoring Cost Calculator. It handles minimums, shortfall fees and the cost of leaving.

FAQ

Is there really factoring with no contract? Some factors say so on their own sites. DAT Outgo says "no annual contracts and no cancellation fees" (though cancelling takes 15 days' notice and a buyout of the invoices it has processed), and Apex says it doesn't lock clients into long-term contracts. You'll still sign a factoring agreement. Read it for notice periods and exclusivity.

What does "no minimums" mean? That you won't be charged for factoring less than a set volume in a month. Triumph, OTR, DAT Outgo and Apex say they have none. Porter says none for 1–2 truck companies.

Is month-to-month factoring more expensive? Sometimes. Porter's lowest advertised rate (1.5% for the first 60 days) is tied to a 1-year recourse contract. Compare total yearly cost, including what it would cost to leave.

Can I factor only some loads? Often only broker by broker. Apex and OTR say that once you factor a broker, you factor all of that broker's invoices.

Do I still need a release letter if there's no contract? Yes. Your brokers got a Notice of Assignment, and they'll keep paying the factor until they're told otherwise in writing.

Related guides: Factoring contract red flags · How to switch factoring companies · Trucking factoring rates and fees

Factors that publish flexible terms

We don't earn anything from these companies today (see the disclosure at the top). Confirm every term in your written agreement.

This article is general information, not financial or legal advice.

Sources

All sources last verified October 26, 2026.