What's the actual cost difference between TBS and RTS on a $20K/mo factored book?

At $20K/mo volume both factors typically quote 2.5 – 3.5% factor. On $20K/mo that's $500 – $700/mo in factoring fees, plus ACH and same-day fees of $25 – $75/mo, plus fuel card monthly fees of $0 – $15. All-in monthly cost typically runs $550 – $800. Differences between TBS and RTS at this volume usually fall in a $20 – $80/mo band — meaningful but not decisive. Pick on service quality and contract flexibility, not headline factor.

Do TBS or RTS require long-term contracts?

Both default to 12 – 24 month contracts with termination fees if you leave early. OTR Capital is the standout with month-to-month options. If you're new to factoring and want to test the relationship first, OTR's month-to-month is a safer first-year choice than TBS or RTS lock-ins, even at a slightly higher headline factor.

Can I switch from TBS to RTS mid-contract?

Yes, but you'll pay TBS's termination fee (typically $500 – $2,500) plus a notice period (often 30 – 60 days). Switching mid-contract usually only makes sense if RTS is materially cheaper on your specific volume or if you're consolidating onto ProTransport TMS. Run the 12-month all-in cost math before triggering the switch.

TBS Factoring Service vs RTS Financial — honest comparison 2026

Both fund small businesses. They solve different problems. Here's the honest side-by-side, then five use-case verdicts so you don't have to guess.

The specs

TBS Factoring ServiceRTS Financial

Product typeMulti-productMulti-product

Amount range$500 – $5M+ in invoices factored (no hard cap)$500 – $5M+ in invoices factored (no hard cap)

Cost (factor / APR)Factor rate 1.5 – 5% of invoice value (volume-tiered; lower at higher monthly factored volume)Factor rate 1.5 – 4% of invoice value (volume-tiered)

Speed to fundSame-day funding on verified invoices (often within 4 hours)Same-day funding on verified invoices

Min time in business0 months0 months

Min monthly revenueVolume-based (typically $10K+/mo factored); accepts new-authority MC carriersVolume-based; accepts new-authority MC carriers

Min credit scoreNo FICO floor — underwrites against broker / shipper credit, not carrier creditNo FICO floor — underwrites against broker / shipper credit

Products

Freight factoring (recourse standard, non-recourse optional)
Fuel card with TA/Petro discounts
Free broker credit checks
Dispatch and back-office services

Freight factoring (recourse + non-recourse)
RTS Fuel card
ProTransport TMS software
Equipment financing referrals

Verdicts by use case

Owner-operator with 1 – 3 trucks needing same-day pay on freight invoices — Winner: TBS Factoring Service. TBS has the longest tenure (since 1968) and the most established same-day funding workflow for single-truck operators. Free broker credit checks plus a fuel card with TA/Petro discounts make TBS one of the most complete owner-operator packages on the market.
Mid-size fleet (10 – 50 trucks) wanting one back-office stack — Winner: RTS Financial. RTS bundles factoring + RTS Fuel card + ProTransport TMS under one platform. For fleets that need dispatch, settlement, and IFTA reporting alongside factoring, the single-vendor consolidation saves real ops time — typically 4 – 10 hours/week of admin at 10+ trucks.
Lowest factor rate at $50K+/mo factored volume — Winner: Tie. Both publish volume-tiered factor rates that compress to roughly 1.5 – 2.5% at $50K+/mo factored volume. Headline rates are similar; effective cost depends on ancillary fees (ACH, same-day surcharge, chargeback). Always request the all-in rate quote in writing from both before deciding.
New-authority MC carrier (0 – 90 days) — Winner: Tie. Both accept new-authority MC carriers from day one — most general working-capital lenders won't. Either factor will fund your first verified load. Decision usually comes down to which fuel card network (TBS's TA/Petro vs RTS's broader network) fits your typical routes.
Non-recourse factoring needed (broker default protection) — Winner: RTS Financial. Both offer non-recourse but RTS's non-recourse program is more visibly priced and more frequently used. If you want explicit broker-default protection, RTS or Apex Capital is the more natural path. TBS's default-recourse posture means you eat unpaid invoices unless you specifically negotiate non-recourse.

The honest takeaway

TBS Factoring Service and RTS Financial solve overlapping but distinct problems. The right choice depends on three things you already know about your business: how fast you need the money, how long you've been operating, and whether the capital need is one-time or recurring.

Frequently asked questions

What's the actual cost difference between TBS and RTS on a $20K/mo factored book?: At $20K/mo volume both factors typically quote 2.5 – 3.5% factor. On $20K/mo that's $500 – $700/mo in factoring fees, plus ACH and same-day fees of $25 – $75/mo, plus fuel card monthly fees of $0 – $15. All-in monthly cost typically runs $550 – $800. Differences between TBS and RTS at this volume usually fall in a $20 – $80/mo band — meaningful but not decisive. Pick on service quality and contract flexibility, not headline factor.
Do TBS or RTS require long-term contracts?: Both default to 12 – 24 month contracts with termination fees if you leave early. OTR Capital is the standout with month-to-month options. If you're new to factoring and want to test the relationship first, OTR's month-to-month is a safer first-year choice than TBS or RTS lock-ins, even at a slightly higher headline factor.
Can I switch from TBS to RTS mid-contract?: Yes, but you'll pay TBS's termination fee (typically $500 – $2,500) plus a notice period (often 30 – 60 days). Switching mid-contract usually only makes sense if RTS is materially cheaper on your specific volume or if you're consolidating onto ProTransport TMS. Run the 12-month all-in cost math before triggering the switch.