How to switch factoring companies — 7-step guide

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   Step 1: Read your current contract for the termination notice

   Open your factoring agreement and find the termination section — usually Section 8 or 10. Note the exact required notice period (30 days, 60 days, or 90 days). Check whether you are still inside the initial contract term or have already rolled to month-to-month after expiry. If you are out of contract, you may owe zero ETF and have no notice requirement at all.

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   Step 2: Calculate your switching cost — any ETF or fees?

   Add up every exit cost before you do anything else: early termination fee (often a flat amount or a percentage of monthly volume × remaining months), NOA revocation fee ($50–$200 at some factors), and account closure fee. Request a written payoff quote from your current factor. Also confirm when your reserve balance will be released — many factors hold it for 60–90 days after the last invoice settles.

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   Step 3: Sign up with Outgo — new factor approved in 1–2 business days

   Apply with Outgo by DAT before you send any termination letters. Outgo approves most carriers in 1–2 business days and issues your new Notice of Assignment (NOA) on approval. You need that NOA document in hand before you contact any brokers. Outgo is month-to-month with no ETF — you are not trading one locked contract for another.

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   Step 4: Get your new NOA — Outgo issues it on signup

   Once Outgo approves your application, download your new NOA. This document instructs all brokers and shippers to direct payments to Outgo. Keep a digital and printed copy. You will send this to every broker in your network. Do not start notifying brokers until you have this document confirmed and in hand.

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   Step 5: Send NOA revocation to your old factor

   Send the termination notice and NOA revocation letter to your old factor via certified mail — to the legal or operations address specified in your contract, not to your account rep's email. Using the wrong address means your notice is legally ineffective and your countdown never starts. Keep the tracking receipt. Your 30 or 60-day clock starts on the date the factor receives the letter.

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   Step 6: Update every broker with your new NOA and bank info

   The same day your new Outgo NOA is active, send it to every broker and shipper in your carrier packet. Update your carrier packet template with the new payment address. Do not wait — if a broker pays your old factor after your new NOA is active, you have a payment dispute. Send the new NOA immediately and follow up by phone with your highest-volume brokers.

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   Step 7: Let pre-switch invoices finish with your old factor — do not interfere

   Every invoice you submitted to your old factor before the NOA switch date is their receivable. They funded you upfront and are entitled to collect from the broker. Do not contact those brokers and try to redirect payment — that is a contractual violation. Let your old factor finish collecting those invoices. Your new Outgo account handles all invoices from the switch date forward.

Switching from Apex Capital

Apex typically requires 60 days written notice before you can terminate. Many carriers do not realize this until they try to leave — by which point the auto-renewal may have already triggered another year. Here is the exact sequence for Apex:

1. 1Locate your Apex contract — find the exact end date and required 60-day written notice provision.
2. 2Calculate your ETF exposure: Apex contracts often include an ETF equal to the average monthly factored volume × a multiplier × remaining months.
3. 3Send written termination notice via certified mail to Apex's legal/operations department (not your account rep). Day 1 of your 60-day clock starts on receipt.
4. 4During the 60-day notice period: apply and get approved with Outgo, obtain your new NOA.
5. 5On day 60 (or whenever Apex formally releases your NOA): send the new NOA to all brokers simultaneously.
6. 6Monitor Apex's collection of your pre-switch invoices and confirm your reserve release schedule.

Switching from RTS Financial

RTS contracts vary significantly by when you signed and what terms you negotiated. Some are 12-month, some multi-year. Some include liquidated damages clauses. Read your specific agreement before assuming any standard terms apply.

1. 1Pull your RTS agreement and identify your specific contract term — RTS contracts vary significantly; some are 12 months, some multi-year with liquidated damages clauses.
2. 2Read the exact termination section — notice periods range from 30 to 90 days depending on your specific agreement.
3. 3Check for a liquidated damages clause: some RTS contracts calculate ETF as lost future revenue, not just a flat fee — this can be material.
4. 4Request a total payoff quote in writing from RTS before sending any notice letter.
5. 5Send certified mail termination to RTS's legal address per your contract. Apply with Outgo in parallel.
6. 6Once RTS releases your NOA, distribute your new Outgo NOA to all brokers on the same day.

Switching from OTR Solutions

OTR Solutions is easier to leave than Apex or RTS — most OTR agreements are month-to-month with a 30-day notice period. The main reason carriers switch from OTR to Outgo is the all-invoice mandate (OTR requires all invoices) and to access Outgo's flat-fee pricing and DAT load board integration.

1. 1OTR Solutions offers month-to-month terms — confirm your agreement is month-to-month (most are, but verify).
2. 2Send a standard written termination notice. OTR typically requires 30 days notice.
3. 3Apply with Outgo immediately — you will be approved and have your new NOA before your OTR notice period expires.
4. 4On the notice expiry date: activate Outgo for new invoices and send the new NOA to brokers.
5. 5OTR still requires all invoices while you are under their NOA — factor any new loads through Outgo only after the formal switch date.

Money math: 5-truck fleet leaving Apex 2.5% → Outgo flat fee

Real scenario: 5-truck owner-operator fleet, $200,000/month gross revenue, factoring 85% of invoices ($170,000/month factored), switching from Apex to Outgo.

The biggest lever is partial-invoice factoring. Outgo lets you factor only the invoices you choose — meaning fast-pay brokers (net 7, or quick-pay at 1.5%) you collect directly, and the savings on that volume compound fast. At $500/month in net savings, that is $6,000/year per 5-truck fleet.