Overview
Bobtail is a freight factoring and fleet card company based in Maryland. Its BBB profile lists the business as Bobtail, also known as Bobtail Capital, started on 16 July 2015, with Gurvir Singh as founder and CEO. Its website lists two offices: Bobtail Capital in Silver Spring and Bobtail Wallet in Columbia, Maryland.
Bobtail builds its own technology, including a factoring app, a transportation management system and the Bobtail Mastercard fleet card, and it markets itself on transparent pricing and same-day payment. Its factoring page claims more than 8,000 carriers have factored with it, more than $1 billion funded and more than 1 million invoices factored. Its homepage says the service is available in English, Spanish and Punjabi.
Bobtail is not in our scored ratings, so it has no score under our methodology. Everything below comes from Bobtail's own website and BBB profile as we found them in November 2026. We have not independently verified these terms.
What Bobtail publishes
| Term | What the company states |
|---|---|
| Factoring fee | Usually 1.5% to 3.5% per invoice (FAQ); "negotiable rates, max 3.24%" (homepage comparison) |
| Reserve | No reserve requirements |
| Funding speed | Submit before 11am Eastern, Monday to Friday, for funding the same day by 6pm Eastern |
| Faster options | Expedited payment for an extra fee; standard same-day and next-day payments are free |
| Contract | Cancel without penalty in the first 90 days; then a long-term contract |
| Other fees | "No hidden fees"; no fee schedule beyond the factoring rate published |
| Fuel advances | Not offered; a fleet card instead |
| Fleet card discounts | Up to $3.00 a gallon, 59 cents a gallon on average, at 1,000+ locations |
| Broker checks | Credit check on every broker and shipper |
| Recourse | Not stated |
| Support hours | 9am to 5pm Eastern, Monday to Friday |
Rates, advances and fees
Bobtail's FAQ says a small factoring fee, "usually 1.5%–3.5%", is charged per invoice, varying with volume and credit risk. It contrasts this with factors that charge extra for processing and ACH transfers on top of the rate, and says Bobtail is "proud to have no hidden fees". Its homepage comparison table describes its rates as "negotiable rates, max 3.24%", against an "old school" factor charging as much as 5% plus fees for setup, minimums, invoices and credit checks. The FAQ and homepage ceilings do not match, so ask which applies to your account and get it in writing.
No reserve is the strongest claim on the list. Most factors advance part of the invoice and hold the rest until the broker pays. Bobtail's FAQ says its contract has "no reserve requirements", which means you receive the invoice value less the fee up front. That makes Bobtail's effective advance close to 100% less the fee, which is worth more to cash flow than a lower rate with a 10% reserve. Confirm that the no-reserve term appears in your agreement.
Same-day funding is free with an early cutoff. Invoices submitted before 11am Eastern on weekdays are funded the same day by 6pm Eastern. The FAQ says expedited payments carry an additional fee, while all other same-day and next-day payments are free. Bobtail does not publish the expedited price, so ask what it costs if you regularly deliver late in the day.
The fleet card is the fuel offer. Bobtail does not offer fuel advances against a booked load. Instead, the Bobtail Mastercard, issued by The Bancorp Bank, N.A., advertises fuel discounts of up to $3.00 a gallon and 59 cents a gallon on average at more than 1,000 locations, with no monthly, transaction or setup fees, and a five-minute approval. Discounts apply only to cardholders at participating locations, so check the network against your lanes. Bobtail links a separate fee schedule for the card.
"No hidden fees" is checkable. Ask for the full fee schedule in writing. If the claim holds, the document costs nothing to send. Our guide to hidden factoring fees lists the charges to look for, and our factoring calculator lets you compare a no-reserve quote against one with a reserve.
Contract terms
This is the term to press on. Bobtail's factoring page is headlined as factoring with no long-term contracts, and says you can cancel at any time in the first 90 days without penalty. Its homepage comparison describes "no long-term commitment for the first 90 days". Its FAQ says that "after a 90-day trial period, Bobtail moves you into a long-term contract". Both statements can be true at once: there is no commitment during the trial, and there is one after it.
Before the trial ends, ask:
- How long the contract runs after day 90
- What notice it requires and whether it renews automatically
- Whether there is a termination fee, and how it is calculated
- How quickly Bobtail releases its UCC filing if you leave
The recourse structure is not stated in the published material we found. That is the most important term after price, so ask directly whether your agreement is recourse or non-recourse and what counts as a covered credit event. Bobtail's practice of running a credit check on every broker and shipper reduces the risk of a non-paying customer, but does not tell you who bears the loss if one fails. Our recourse versus non-recourse guide explains the difference, and our guide to reading a factoring contract shows where to find it.
Getting started is light on paperwork. The FAQ says you need a driver's licence and an insurance document, sometimes with incorporation documents, and that each invoice needs a signed bill of lading and a rate confirmation. If you are moving from another factor, the FAQ says the switch typically takes about two days, depending on your current provider. Our guide to switching factoring companies explains the buyout and UCC release steps.
Funding speed and service
The funding promise is specific: submit before 11am Eastern, Monday to Friday, and the money is sent the same day by 6pm Eastern. The FAQ says Bobtail provides same-day funding to all clients, and its homepage lists same-day and next-day cash with no extra charge. The 11am Eastern cutoff is early for carriers in the western time zones, where it falls at 8am Pacific, so drivers who deliver in the afternoon will usually be paid the next business day unless they pay for expedited payment.
Support runs from 9am to 5pm Eastern, Monday to Friday, on (410) 204-2084, according to the FAQ. There is no published weekend support for factoring.
Bobtail's BBB profile, checked in November 2026, shows an A+ grade, BBB accreditation since 8 December 2022 and no complaints filed in the last three years. The profile shows only three customer reviews. Those raise difficulty ending the relationship, a company that did not answer its phone, and delays in getting paid for loads. Three reviews are too few to call a pattern, but the cancellation theme lines up with the contract question above.
Who it's for
The single fee range, no reserve and free same-day funding suit carriers who value predictable cash flow and can submit paperwork in the morning. The 90-day trial is a useful way to test the service, as long as you decide before it ends. Spanish- and Punjabi-speaking owner-operators get support in their language, which few factors offer.
Carriers who need fuel advances before delivery, or who want non-recourse cover confirmed up front, should get both answered before signing. New authorities should read our guide to factoring with a new authority. Compare Bobtail against the scored companies in our freight factoring ratings.
What to ask before you sign
- What happens at the end of the 90 days: how long is the contract, and what does it cost to leave?
- Which rate ceiling applies to me, 3.24% or 3.5%?
- Is there genuinely no reserve, and is that in the agreement?
- Is this recourse or non-recourse, and what is a covered credit event?
- What does expedited payment cost?
- Can I have the full fee schedule in writing?
Pros and cons
Pros
- Published fee range of 1.5% to 3.5% and a "no hidden fees" promise
- No reserve requirements
- Free same-day funding for invoices submitted before 11am Eastern
- Cancel without penalty during the first 90 days
- Fleet card with published average fuel discounts
- A+ BBB grade with no complaints filed in the last three years
Cons
- A long-term contract after the 90-day trial, with no published length or exit fee
- Two different published rate ceilings
- No fuel advances, only a fleet card
- Recourse structure not published
- Early same-day cutoff and weekday-only support hours
How it compares
BasicBlock is the nearest alternative: a published 2.5% rate, no contracts at all and a later 2pm Central same-day cutoff, plus fuel advances of up to 50% of a load, which Bobtail does not offer. RTS Financial also bundles a fuel card with factoring, but on a 12-month term with an exit fee our editors recorded at about $5,000. 5 Star Freight Factoring advertises month-to-month terms but publishes far less about its pricing. See them side by side on our compare page.
Frequently asked questions
What does Bobtail charge for factoring?
Bobtail's FAQ says its fee is usually 1.5% to 3.5% per invoice and that it has no hidden fees. Its homepage describes its rates as negotiable with a maximum of 3.24%.
Does Bobtail require a contract?
Bobtail says you can cancel without penalty during the first 90 days. Its FAQ says that after the 90-day trial, customers move into a long-term contract. Ask for the term, notice period and any termination fee.
How fast does Bobtail pay?
Invoices submitted before 11am Eastern, Monday to Friday, are funded the same day by 6pm Eastern. Expedited payment is available for an extra fee; other same-day and next-day payments are free.
Does Bobtail hold a reserve?
No. Its FAQ says there are no reserve requirements. Make sure your agreement says the same.
Does Bobtail offer fuel advances?
No. Bobtail offers the Bobtail Mastercard fleet card, which advertises fuel discounts averaging 59 cents a gallon, rather than cash advances against a booked load.