Overview
5 Star Freight Factoring sells freight factoring to owner-operators, fleet operators and freight brokers. Its website says freight factoring is the only thing it does, and puts flexibility at the centre of its pitch: rates "as low as 1% based on your volume", month-to-month options you can cancel at any time, programmes with a $0 monthly minimum, a choice of recourse or non-recourse factoring, fuel advances and at-the-pump fuel discounts.
The company says little about itself. Its About page says its founders "had been working in the factoring industry for many years" but does not name them, give a founding year or list an office address. Its terms and conditions name the operator only as "5 Star Freight Factoring", with no state of incorporation or mailing address. The only contact details we found are a phone number, 855-859-0769, and a quote form. The site footer carries a 2018 copyright date, which tells you when the site was built rather than when the business started.
What its site also does not give is an advance percentage or a fee schedule, two of the numbers that decide how much cash reaches you. This review sets out what 5 Star publishes, what is missing, and the questions to ask.
5 Star Freight Factoring is not in our scored ratings, so it has no score under our methodology. Everything below comes from the company's own website as we found it in November 2026. We have not independently verified these terms.
What 5 Star Freight Factoring publishes
| Term | What the company states |
|---|---|
| Factoring rate | As low as 1% based on your volume |
| Advance rate | "High advance rates", no figure given |
| Funding speed | Account set up and funded "typically within 24 hours" once you accept a proposal |
| Contract length | Month-to-month options, cancel at any time |
| Monthly minimum | $0 minimum programmes available |
| Recourse structure | Both recourse and non-recourse offered |
| Fuel advances | Yes, an advance on expected fuel costs before you haul |
| Fuel card | At-the-pump fuel discounts |
| Invoice submission | Photo upload from your phone |
| Also serves | Freight brokers as well as carriers |
| Address | Not published |
Rates, advances and fees
"As low as 1%" is a floor, not a quote. The company ties the rate to volume, and the lowest rates in this market generally go to carriers with high monthly volume and strong broker credit, often on recourse terms. Ask what rate applies at your volume, on your broker mix, under the structure you actually want. If you are choosing non-recourse, ask for both prices side by side so you can see what the credit protection costs you.
No advance percentage is published. "High advance rates" is not a number. The advance matters as much as the rate: a lower fee on a smaller advance can leave you with less working cash this week than a higher fee on a larger one, because the reserve stays with the factor until the broker pays. Get the advance in writing next to the rate, and ask when the reserve is released and whether any part of it can be held against future disputes.
Ask how the fee is calculated. Some factors charge a flat percentage per invoice. Others charge a percentage for each block of days the invoice stays open, so a broker who pays in 45 days costs you more than one who pays in 15. A "1%" that applies per 10 or 15 days is a very different price from a flat 1%. 5 Star does not say which model it uses.
Ask for the full fee schedule. Wire, ACH and per-invoice charges are where a low headline rate turns into a higher real one. Our guide to hidden factoring fees lists what to look for, and our factoring calculator helps you compare quotes on the same basis.
Fuel advances and discounts carry their own terms. The site says you can get an advance on expected fuel costs before a load is hauled, and that its programmes offer discounts at the pump. It publishes no advance limit, fee or discount amount. Ask what share of the load you can draw for fuel, what each advance costs, and which fuel networks the discounts apply at.
Contract terms
Month-to-month terms with no monthly minimum sit at the flexible end of the market. Confirm two things before relying on them:
- Whether the $0 minimum applies at every rate tier. The lowest advertised rates may require volume commitments that bring back a minimum by another name. The site says only that it offers $0 minimum programmes, not that every programme has one.
- What "cancel at any time" means in the agreement. Ask whether there is a notice period, a termination fee, or a requirement to settle open invoices before you get a UCC release. Our guide to switching factoring companies explains the release process.
The choice of recourse or non-recourse is a real advantage. Factors that only sell non-recourse can push you into paying for credit protection you may not need. With a choice, you can price that protection against your own broker list. Under the non-recourse option, ask exactly which events are covered. In most agreements non-recourse covers a broker's insolvency, not disputes, short payments or missing paperwork. Our recourse versus non-recourse guide explains where the line usually falls, and our guide to reading a factoring contract shows where to find the definition.
Because the company does not publish a legal entity, state or address, ask for the full legal name of the company you are contracting with and where it is registered. You will need that name to search UCC filings later, and it is the name that will appear on the notice of assignment your brokers receive.
Funding speed and service
5 Star does not publish a daily cutoff or a same-day funding promise. Its Get Started page says that once you review a proposal and decide to proceed, your account is set up and funded "typically within 24 hours". That describes onboarding, not the turnaround on each invoice after you are set up. Same-day and next-day funding are standard claims in freight factoring, so ask directly: what is the cutoff for same-day funding, is payment by ACH or wire, and what does a faster transfer cost?
Invoices are submitted by photographing paperwork on your phone and uploading it, according to the homepage. For freight brokers, the company says its programme lets brokers pay their carriers "as soon as they drop their load", and that qualifying for broker factoring is independent of your personal credit or payment history.
We could not find a BBB profile for 5 Star Freight Factoring, and the site lists no support hours. With no public complaint record and no independent review data we consider reliable, we cannot say anything about service quality either way. Testimonials on the company's own site praise timely funding and helpful staff, but a company chooses its own testimonials.
Who it's for
The flexible structure suits carriers who want to avoid long commitments, and the recourse option suits established operators hauling for brokers they know well, where paying for credit protection is poor value. Fuel advances help carriers who need cash before a load delivers. Freight brokers who need to pay carriers quickly are also a stated audience.
Low-volume carriers should be realistic that the headline 1% is unlikely to be their rate. New authorities should read our guide to factoring with a new authority for what else to check. Everyone should get the advance percentage, fee model and funding cutoff in writing before comparing 5 Star with the companies in our freight factoring ratings.
What to ask before you sign
- What is the legal name and registered address of the company I am contracting with?
- What rate applies at my monthly volume, for recourse and for non-recourse?
- Is the fee flat per invoice or charged per block of days outstanding?
- What is the advance percentage, and when is the reserve released?
- How fast is funding after setup, and what is the daily cutoff?
- Does the $0 minimum apply at my rate tier?
- What are the wire, ACH and per-invoice fees?
- How much notice do I need to give to leave, and is there any fee?
Pros and cons
Pros
- Month-to-month options the company says you can cancel at any time
- $0 monthly minimum programmes
- Choice of recourse or non-recourse factoring
- Fuel advances before you haul, plus fuel discounts at the pump
- Factoring for freight brokers as well as carriers
Cons
- No advance percentage or fee model published
- No per-invoice funding speed or cutoff time published
- The 1% headline rate is volume-dependent and unlikely to apply at low volume
- No address, legal entity details or BBB profile found
- Not yet scored, so no independent read on its complaint record
How it compares
Several freight factors we profile publish far more of their terms. BasicBlock states a 2.5% rate, a 2pm Central cutoff and a no-contract policy on its site. Bobtail publishes a 1.5% to 3.5% fee range, no reserve and an 11am Eastern same-day cutoff. TBS Factoring also offers both recourse and non-recourse plus an advance programme of up to 50% on a load you factor. Use their published terms as a benchmark when you read a 5 Star quote, and line quotes up on our compare page.
Frequently asked questions
What does 5 Star Freight Factoring charge?
The company advertises rates as low as 1% based on volume. That is a floor rather than a typical quote. Ask for a rate based on your own volume and broker mix, and ask whether it is flat or time-based.
Does 5 Star Freight Factoring require a long contract?
The company says it offers month-to-month options you can cancel at any time, along with $0 monthly minimum programmes. Confirm the notice period and any exit terms in your agreement.
Does 5 Star Freight Factoring offer non-recourse factoring?
Yes. It says it offers both recourse and non-recourse options and will explain the differences. Read the covered-event clause before assuming broad protection.
How fast does 5 Star Freight Factoring pay?
The company says new accounts are set up and funded typically within 24 hours of accepting a proposal. It does not publish a per-invoice cutoff, so ask whether ongoing funding is same-day or next business day.
Where is 5 Star Freight Factoring based?
Its website does not give an address or state. The only published contact is 855-859-0769. Ask for the company's legal name and registered address before signing.