Switcher Guide 2026 · No ETF · No Long-Term Contract
No-Contract Trucking Factoring 2026: Switch in Days
Locked into Apex or RTS? Here's how to switch — and the only legit no-contract factoring company we recommend.
Affiliate disclosure: We earn a commission if you sign up through our link. Costs you nothing extra.
Yes — Outgo by DAT offers month-to-month trucking factoring with no long-term contract, no early termination fee, and no minimum invoice volume. OTR Solutions also offers month-to-month terms. Most owner-operators switching from Apex or RTS save $300–$800 per month.
TL;DR
Outgo by DAT offers month-to-month factoring with no long-term contract, no early termination fee, no minimum volume, and partial-invoice flexibility — meaning you can factor only the invoices you choose. Most owner-operators switching from Apex or RTS save $300–$800 per month after eliminating hidden fees and all-invoice mandates.
Why most factoring companies lock you in (and what you can do)
Factoring companies make money on volume. The longer they keep you — and the more invoices they process — the more they earn. Long-term contracts are not about your benefit. They exist to prevent you from leaving when you find a better deal. Here is how the major players structure their lock-in:
| Company | Contract | ETF | Notice to Leave | All-Invoice? |
|---|---|---|---|---|
| ⭐ Outgo (by DAT) | Month-to-month | None | None required | No — partial OK |
| Apex Capital | 1–2 years typical | Yes — varies by contract | 60 days written notice | Yes — all invoices required |
| RTS Financial | Multi-year typical | Yes — liquidated damages | 30–90 days | Yes — all invoices required |
| OTR Solutions | Month-to-month | None | 30 days | Yes — all invoices required |
| eCapital | 1 year typical | Varies | 60 days | Varies by agreement |
| Triumph Business Capital | 6–12 months | Yes | 30–60 days | Yes — all invoices required |
Contract terms confirmed as of Q2 2026. Always verify current terms directly with the provider before signing.
How to leave your current factoring contract
Switching is not complicated — but the order of operations matters. Do these steps wrong and you risk double-factoring fraud, missed payments, or losing your NOA with active brokers. Do them right and you can be fully switched in under a week (assuming you are month-to-month or out of contract).
- 1
Read your contract for the notice period
Find the termination clause — usually Section 8 or 10 of your agreement. Note the required notice period (most are 30–90 days written notice) and any early termination fee amounts. Check whether you are still inside your initial contract term or have rolled to month-to-month after expiry. If you are out of contract, you may owe no ETF at all.
- 2
Identify Notice of Assignment (NOA) revocation requirements
Your contract specifies how to revoke your NOA. Most require a written revocation letter sent via certified mail to the factor's legal or operations department — not to your account rep's email. Find the exact address. Some factors require 10–30 business days after receiving the revocation before the NOA is formally released.
- 3
Sign up with a new no-contract factor and get your fresh NOA
Complete your application with the new factor before you send any revocation letters. Outgo by DAT approves most carriers in 1–2 business days and issues your new NOA on approval. You need that NOA document in hand before you start contacting brokers — do not start the broker notification process without it.
- 4
Send NOA revocation to old factor + new NOA to all brokers
Send the certified revocation letter to your old factor. Simultaneously, send your new NOA to every broker and shipper in your carrier packet. Update your carrier packet template with the new payment address. Your old factor will continue collecting on invoices already submitted to them — do not interfere. Your new factor handles all new invoices from this point forward.
Outgo: the only flat-fee, no-contract factor we recommend
We have reviewed every major factoring company available to US trucking carriers. For carriers switching out of a locked-in contract, Outgo by DAT is the clearest choice — not because of hype, but because of specific structural advantages that matter when you are making a switch:
- ✓No long-term contract. Month-to-month. You can stop whenever you want, no ETF, no 60-day notice period. If something better comes along, you can leave without penalty.
- ✓Flat fee per invoice. Not a percentage of your gross — a flat fee. This means your cost is predictable and does not scale up when you run high-rate loads. Apex and RTS take more money when your load pays more.
- ✓Partial-invoice factoring. You choose which invoices to factor. You are not required to submit every invoice. Factor the slow-pay brokers, collect directly from the fast-pay brokers. No all-invoice mandate.
- ✓No minimum volume. You do not need to factor $10K/month or hit any usage floor. Seasonal carriers, part-time operators, and fleets in transition can use Outgo at any volume.
- ✓DAT-backed credibility. Outgo is built by DAT — the company behind DAT One, the most widely used load board in trucking. This is not a startup. Your NOA is recognized by brokers who already know the DAT brand.
- ✓Same-day funding. Submit your paperwork (rate confirmation + signed POD + invoice) and get funded the same business day. No waiting until 5 PM.
Comparison: Apex vs RTS vs Outgo (contract terms)
| Contract Term | Apex Capital | RTS Financial | Outgo (by DAT) |
|---|---|---|---|
| Contract length | 1–2 years | Multi-year | None — month-to-month |
| Early termination fee | Yes | Yes (liquidated damages) | None |
| Notice to leave | 60 days written | 30–90 days | None required |
| All-invoice required | Yes | Yes | No — partial OK |
| Volume minimum | Varies by contract | $10K/month+ | No minimum |
| Rate structure | Percentage (1.5–3.5%) | Percentage (1.0–4.0%) | Flat fee per invoice |
| NOA issued on signup | Yes | Yes | Yes — same day |
| Fuel card tied to account | Often bundled | Often bundled | Separate |
Contract terms vary by negotiation. Always request and read the full agreement before signing. Data current as of Q2 2026.
Switching math: 5-truck fleet leaving Apex
Real example: a 5-truck owner-operator fleet running $180,000/month in gross revenue, factoring 85% of invoices ($153,000/month factored), switching from Apex to Outgo.
With Apex (current)
- Factoring rate: 2.8% (blended, all-invoice required)
- Monthly fee on $153K: $4,284
- ACH/wire fees (est.): $180
- Fuel card offset disputes: $200 avg
- Total monthly cost: ~$4,664
With Outgo (after switch)
- Flat fee: transparent per invoice
- Only factoring slow-pay invoices: ~$110K
- Estimated monthly cost: $3,200–$3,500
- No ACH fees, no fuel card disputes
- Estimated monthly savings: $1,164–$1,464
The biggest lever is partial-invoice factoring — Outgo lets you factor only the invoices you choose. Fast-pay brokers (net 7 or quick pay 1.5%) can be collected directly. On $40K of fast-pay invoices per month that you no longer have to factor, you save the full factoring fee on that volume.
Common reasons carriers switch factors
📈
Rates went up mid-contract
Many factors bury rate-increase clauses that let them raise your fee after 6–12 months. By the time you notice, you're locked in for another year.
💸
Hidden fees you didn't see coming
ACH fees, wire fees, same-day funding surcharges, monthly statement fees, fuel card fees — they add up. Carriers routinely discover their "2% rate" is actually 3.5% all-in.
⛽
Fuel card disputes
Some factors tie fuel card accounts to your factoring agreement and offset fuel card balances against your invoice payments without warning. Disputes are slow and painful.
⏱️
Slow funding
"Same-day" funding that arrives at 5 PM is not the same as same-day. Carriers with tight fuel margins need cash before noon. When funding slips, loads get missed.
📞
Support quality dropped
Growth-phase factors often onboard faster than their support teams can handle. Long hold times, lost NOA documents, and unanswered broker disputes are the result.
🔒
Trapped by the contract
You found a better deal but cannot act on it without paying an ETF. This is the most common reason carriers stay with a bad factor longer than they should.
Fees to watch when switching
Before you send your termination letter, understand what your current factor can charge you. These are the most common costs carriers discover mid-switch:
- ⚠Early termination fee (ETF). A flat fee or a percentage of your monthly average factored volume, multiplied by the remaining months in your contract. On a 2-year Apex contract with 8 months left and $100K/month in volume, this can be $5,000–$15,000+.
- ⚠NOA revocation fee. Some factors charge $50–$200 to formally release your NOA. This is usually buried in the fee schedule addendum, not the main contract.
- ⚠Account closure / buyout fee. Distinct from ETF — some factors charge a separate fee to close out your account and reconcile pending reserves. Ask for a total payoff quote before terminating.
- ⚠Outstanding reserve balance. If your factor holds a reserve (some hold 3–5% of each invoice), confirm the release schedule. Reserve funds may be held for 90 days after your last invoice is collected — you are owed that money, but you will not see it immediately.
- ⚠Fuel card balance. If your fuel card is tied to your factoring account, pay it to zero before you close the account or the balance will be deducted from your reserve.
What about my pending invoices?
This is the question carriers get most anxious about. The answer is straightforward:
Invoices already with your old factor
Your old factor continues to collect on every invoice you submitted before the switch. They funded you upfront — they are entitled to collect from the broker. Do not contact those brokers and try to redirect payment. That would be a contractual violation. Let the old factor finish collecting and release your reserve per schedule.
New invoices after the switch
Every invoice generated after your new NOA is active goes to your new factor. The new NOA tells brokers to pay the new factor. Submit your paperwork to the new factor only. Do not accidentally send a new invoice to the old factor — that would create a payment conflict.
The clean line: invoices submitted before NOA switch date → old factor. Invoices submitted after NOA switch date → new factor.
Common switching mistakes
- ✗Sending the NOA revocation to the wrong address. Most factors have a specific legal or operations address for termination notices — it is not your account rep's email. Using the wrong address means your notice is legally ineffective and your 60-day clock never starts.
- ✗Double-factoring the same invoice. Submitting an invoice to both your old and new factor is factoring fraud. Only submit new invoices to your new factor after the NOA is officially switched.
- ✗Missing the notice deadline and triggering an auto-renewal. Many contracts auto-renew for another 1–2 year term if you do not send written notice 30–90 days before the contract end date. Missing this window by even one day can lock you in for another year.
- ✗Not telling brokers about the new NOA fast enough. If a broker pays your old factor after your new NOA is active, you have a payment dispute on your hands. Send the new NOA to every broker the same day you activate your new factor account.
- ✗Forgetting to update your carrier packet. Your carrier packet (sent to every new broker before your first load) must have the updated NOA and new payment address. An outdated carrier packet means new brokers send payment to the wrong place.
Why no-contract factoring is now standard
Five years ago, a 2-year factoring contract was standard practice. Every major provider required it. The reasoning was simple: factoring companies front capital and need predictable volume to manage their risk.
The market has shifted. Technology reduced underwriting costs. Competition from new entrants forced established factors to loosen terms. And when DAT — the company that runs the largest load board in the country — launched Outgo with month-to-month terms and a flat-fee structure, it set a new standard that the rest of the industry is now being measured against.
Carriers who signed 2-year Apex or RTS contracts in 2023 or 2024 are now comparing their locked-in rates against what Outgo offers — and many are waiting for their contract to expire before switching. If you are already month-to-month or out of contract, you have nothing to wait for.
The question is no longer "can I get no-contract factoring?" — yes, you can. The question is "why are you still paying ETF exposure and all-invoice mandates when you don't have to?"
Switching factoring FAQ
Is there factoring with no contract?
Yes. Outgo by DAT offers month-to-month factoring with no long-term contract, no early termination fee, and no minimum invoice volume. OTR Solutions also offers month-to-month terms. Most other major factors (Apex, RTS, eCapital) require 1–2 year contracts.
How do I leave my factoring contract?
Step 1: Read your contract for the required notice period (usually 30–90 days). Step 2: Identify what your contract requires to revoke the Notice of Assignment (NOA). Step 3: Sign up with a new no-contract factor and get a fresh NOA. Step 4: Send a NOA revocation letter to your old factor and send the new NOA to all your brokers.
What is the cheapest no-contract factoring?
Outgo by DAT offers a flat fee per invoice with no long-term contract — making it the most transparent no-contract option. Because there are no hidden fees, reserve clawbacks, or fuel card bundling, many owner-operators find the effective cost lower than percentage-rate competitors even when nominal rates appear similar.
Will my old factor charge a fee to leave?
Apex typically charges early termination fees if you leave before your contract end date. RTS contracts vary — some include liquidated damages clauses. Always read your contract's termination section before switching. If you are outside your contract term or in a month-to-month arrangement, termination fees usually do not apply.
What is a Notice of Assignment (NOA)?
A Notice of Assignment is a legal document your factoring company sends to your brokers and shippers, instructing them to pay the factor directly instead of you. Brokers are bound by the NOA — they cannot legally pay you directly once an active NOA is on file. When you switch factors, you must revoke the old NOA and file a new one.
Can I have two factoring companies at once?
No. Double-factoring — submitting the same invoice to two different factoring companies — is fraud. You can only have one active factoring relationship per invoice. During a switch, your old factor handles invoices already assigned to them, and your new factor handles new invoices going forward.
Do I have to factor every invoice?
It depends on your contract. Some factors (especially Apex and RTS) require you to submit all invoices — this is called an "all-invoice" or "full-recourse" commitment. Outgo by DAT allows partial-invoice factoring, meaning you choose which invoices to factor and which to collect yourself.
How fast can I switch factoring companies?
The timeline depends on your current contract's notice period. If you are month-to-month (or out of contract), you can complete the switch in 3–7 business days — sign up with the new factor, get your new NOA, send NOA revocations to old factor, send new NOA to brokers. If you are under a contract with a 60-day notice requirement, expect 60–90 days before you are fully transitioned.
What is partial-invoice factoring?
Partial-invoice factoring means you can choose to factor only selected invoices rather than being required to submit every invoice to the factor. This gives you flexibility to collect directly from brokers who pay quickly while factoring only the slow-pay invoices. Outgo by DAT supports partial-invoice factoring; Apex and RTS typically require all invoices.
Done waiting on your current factor?
Outgo by DAT: month-to-month, flat fee, no ETF, no all-invoice mandate. Switch in days.
Reviewed by Don Grazio · UC Bureau Compliance Lead
Don has 12+ years working with motor carriers on FMCSA compliance, including new entrant audits, MCS-150 filings, BMC-91 insurance setups, and ELD compliance. UC Bureau researches FMCSA regulations (49 CFR Parts 380–399) directly with carriers across the U.S. and Canada. Content is fact-checked against current federal regulations. UC Bureau is not affiliated with the U.S. Department of Transportation or FMCSA — we provide tools and guides to help carriers stay compliant. Learn more about UC Bureau →