6 Best Accounts Receivable Financing Companies 2020

Accounts receivable (A/R) financing companies can provide fast, affordable funding to smooth out a small business’s cash flow or provide access to short-term working capital. A/R financing is based on the value of outstanding receivables. We reviewed more than 20 invoice financing companies and selected the six best.

Best A/R Financing Companies 2020

*Last Updated: January 2020

How We Evaluated A/R Financing Companies

We considered a broad range of A/R financing companies to identify the six best providers of working capital. In establishing our review criteria, we considered the pain points we’ve heard small businesses express. This includes such things as how much business owners can borrow, how quickly they can access the needed funds, and how difficult it is to qualify for receivables financing.

FundThrough: Best Overall A/R Financing Company

FundThrough offers a financing option to small businesses that includes both the large range of funding and flexibility of invoice factoring and the convenience of invoice financing. Its flat-rate structure, 100% advance rate, no minimum requirements, and next-day funding make FundThrough the best invoice financing company.

FundThrough A/R Financing Rates & Fees

• Discount rate: Starting at 2.5%
• Expected annual percentage rate (APR): 7.5% to 50%
• Origination or maintenance fees: None
• Prepayment penalties or termination fees: None
• Additional fees: None

FundThrough has a flat-fee structure so that borrowers know exactly how much financing will cost them for each invoice. While the fee varies, it isn’t based on how long the invoice is outstanding, so borrowers need not worry if the invoice is repaid in a week or three months. FundThrough also doesn’t have additional fees, so business owners need not worry about unexpected fees.

FundThrough A/R Financing Terms

• Funding amount: Unlimited
• Advance rate: Up to 100%
• Repayment terms & schedule: Advances are repaid as customers pay their invoices
• Personal guarantee: Required
• Speed to funding: As quick as one day

FundThrough finances one invoice at a time and offers small business owners an unlimited amount of funding based on those invoices. Business owners also receive 100% of the invoice amount, less the fee and funding is available in as quick as one business day.

FundThrough Receivables Financing Additional Features

• Customer interaction: Only initial introduction
• Assignment of invoices: Required

FundThrough requires small business owners to email customers that informs them the invoice is being financed. Business owners can edit the template provided by FundThrough, and the lender doesn’t communicate with the customer after that. While businesses must assign the invoice, FundThrough will work with borrowers to find a solution if a customer does not pay an invoice.

FundThrough Accounts Receivable Loan Minimum Qualifications

• Credit score: No minimum requirement
• Time in business: No specific requirement
• Annual revenue: No specific requirement

FundThrough doesn’t set a specific requirement that small business owners must meet to get funding. The only requirement is an internet connection and an invoice from business or government customers. Businesses that have less than six months of operations may need to go through a deeper review process, which can delay funding up to a day.

What FundThrough Invoice Financing Is Missing

FundThrough offers the best accounts receivable loan option available to small business owners. While it has no minimum requirements, offers unlimited funding, and has a flat fee structure, small business owners with short-term invoices may find it expensive. A lender like BlueVine with weekly fees can offer lower costs for short-term A/R financing.

FundThrough Reviews

There are few FundThrough reviews available online, but most of them are positive. Customers receive excellent service, low rates, and quick funding. We didn’t find any negative reviews and expect that this is a testament to the stellar service that FundThrough offers.

BlueVine: Best for Short-term Invoices

BlueVine is a great option for businesses needing to borrow up to $5 million in receivables financing. Advance rates range from 85% to 90% with a discount rate starting as low as 0.25% and, unlike some of the other invoice financing companies, BlueVine won’t communicate with a borrower’s customers. BlueVine also offers a small business line of credit and short-term business loans.

BlueVine A/R Financing Costs

• Discount rate: Starting at 0.25% per week
• Expected APR: 15% to 70%
• Origination or maintenance fees: None
• Prepayment penalties or termination fees: None
• Additional fees: $15 wire fee; automated clearing house (ACH) is free

At 0.25% per week, BlueVine’s lowest available discount rate makes it potentially more affordable than accounts receivable financing through FundThrough, which has a fixed fee.

BlueVine A/R Financing Terms

• Funding amount: $5,000 to $5 million
• Advance rate: Typically up to 85% to 90%
• Repayment terms & schedule: Advances are repaid as customers pay their invoices
• Personal guarantee: Required from all business owners
• Speed to funding: 10 minutes to apply with a decision and funding as soon as the next day; ongoing funding the next day is free via an ACH; same day is $15 via a wire

As with FundThrough, BlueVine offers a fully electronic application system. It’s quick for business owners to approved and usually takes less than 10 minutes. Businesses that don’t use QuickBooks, Xero, or FreshBooks, may need to wait longer to receive approval.

BlueVine Receivables Financing Additional Features

• Customer interaction: None
• Type of invoice financing agreement: Recourse

While BlueVine requires customers to pay the invoice directly to a bank account set up in the business name, it will not communicate with a borrower’s customers directly. With BlueVine, business owners will be given the option of self-paying the invoice or be enrolled in an installment repayment plan.

BlueVine Accounts Receivable Financing Minimum Qualifications

• Credit score: At least 530
• Time in business: At least three months
• Annual revenue: At least $100,000

BlueVine is looking for its borrowers to meet its credit criteria and have creditworthy business-to-business (B2B) or business-to-government (B2G) customers. This differs from FundThrough, which has no minimum credit score requirements and allows business-to-consumer (B2C) customers. BlueVine also has a line of credit option available for small businesses with B2C customers.

What BlueVine Invoice Financing Is Missing

One drawback to BlueVine is that the business owner needs to have a 530 or higher credit score, which is not a requirement for FundThrough or most of the other providers on our list. The minimum score BlueVine requires is still low, meaning this drawback will impact only a few A/R financing borrowers.

What Users Think About BlueVine Accounts Receivable Loan

We compiled user reviews from around the web and determined that BlueVine reviews are positive. Customers who recommended BlueVine were impressed with its responsive customer support team. Customers also liked that BlueVine discloses all of its rates and fees. Some users weren’t happy that they were denied funding.

Payability: Best A/R Financing Company for Ecommerce & Amazon Sellers

With APRs ranging from 12% to 40%, Payability is a good option for ecommerce businesses who sell on marketplaces like Amazon and Walmart. With Payability, ecommerce businesses can borrow against future or daily marketplace A/R. The number of marketplaces Payability can serve continues to increase, meaning more businesses can use this service.

Payability Accounts Receivable Loan Costs

• Discount rate:
  • Daily invoices: Flat monthly rate starting at 1% to 2% of gross sales
  • Future invoices: Flat weekly fee starting as low as 0.75% of future receivables
• Expected APR: 12% to 40%
• Prepayment penalties or termination fees: None
• Additional fees: None

If Payability advances against future receivables and collects sooner than expected, it will provide business owners with a rebate equal to the number of weeks early the collection occurred. As an example, if a $100,000 invoice is repaid four weeks early, then the rebate would equal $3,000 or $750 for each week times four.

Payability A/R Financing Terms:

• Funding amount:
  • Daily invoices: No maximum; minimum advance is $100
  • Future invoices: Typically from $3,000 to $250,000; larger limits may be considered with additional approval
• Advance rate:
  • Daily invoices: Up to 80%
  • Future invoices: ~ 80% or 85%
• Repayment terms & schedule: Repaid as marketplace invoices are paid
• Personal guarantee: Likely required
• Speed to funding: Minutes to apply with a decision and funding within 24 hours

Payability offers the lowest minimum advance amount of $100. Most other providers require business owners to finance a greater amount than this except FundThrough, which has no minimum requirement.

Payability Receivables Financing Additional Features

• Customer interaction: Collection of receivables from an ecommerce marketplace
• Assignment of invoices: Required

Payability helps business owners with the collection of ecommerce marketplace A/R, daily or future. Depending on the A/R financing product business owners select, they’ll either borrow against daily receivables or future marketplace receivables. Unlike other A/R financing options where customers make payments to the provider, the customer payments will still process through an ecommerce account with Payability.

Payability Accounts Receivable Loan Minimum Qualifications

• Credit score: Not a factor
• Time in business:
  • Daily invoices: At least 90 days of sales history
  • Future invoices: At least six months of consistent sales history
• Annual revenue:
  • Daily invoices: $2,000 per month in sales
  • Future invoices: $5,000 per month in sales on multiple items

When qualifying applicants for A/R financing, Payability cares most about the performance of an ecommerce marketplace like Amazon, Walmart, or Etsy. Payability’s qualifications are focused on the marketplace sales volume and history. Besides sales history and volume, business owners must have good account health.

What Payability Invoice Financing Is Missing

The downside to Payability is that it’s only available to ecommerce marketplace sellers. However, given the growth in the ecommerce business, it’s a great niche product if the business fits the target profile. Plus, Payability keeps adding additional marketplaces where its financing is available.

What Users Think About Receivables Financing With Payability

We compiled Payability reviews from around the web and found that it has positive ratings. Users who gave Payability a positive review like that they can get their marketplace funds immediately. There weren’t many negative reviews for Payability, but some users experienced some miscommunication regarding how much it charges for its services.

Paragon Financial Group: Best Nonrecourse A/R Financing Company

Paragon Financial Group is great for businesses that want nonrecourse A/R financing. It’s also good for businesses with credit issues and can even help businesses with tax or legal issues. Paragon Financial Group lets business owners select specific invoices to advance against, and rates are competitive, ranging from 16% to 30% APR. As a bonus, it also offers purchase order (PO) financing to business owners that need cash to fill orders.

Paragon Financial Group Accounts Receivable Financing Costs

• Discount rate: 1.25% to 2% per 30 days
• Expected APR: 16% to 30%
• Origination fee: Small, one-time due diligence fee when accepting a financing offer
• Additional fees: Any additional fees will be disclosed in the A/R financing agreement

Unlike FundThrough and BlueVine, the discount rate charged by Paragon Financial Group includes credit protection and A/R management services. This is a value-added service that may be beneficial for small companies.

Paragon Financial Group A/R Financing Terms

• Funding amount: $25,000 to $10 million
• Advance rate: ~ 80% to 90%
• Repayment terms & schedule: Repaid as invoices are paid
• Personal guarantee: Most likely not required
• Speed to funding: Three to 10 business days

Paragon Financial Group offers accounts receivable financing of up to $10 million, which is the highest amount provided by any of the providers we have reviewed here. The next highest amount available is $7.5 million offered by Crestmark.

Paragon Financial Group Receivables Financing Additional Features

• Customer interaction: Required
• Assignment of invoices: Required
• Type of invoice financing agreement: Recourse and nonrecourse

Unlike providers like BlueVine and Payability, Paragon Financial Group is purchasing invoices, so business owners can expect them to interact with customers. It doesn’t, however, act like a collection agency, so it cares about making sure customers are treated well. As the company is well-established, many customers are accustomed to making payments to Paragon Financial Group.

Paragon Financial Group A/R Financing Minimum Qualifications

• Credit score: Not a factor; credit problems OK, including slow-paying customers, IRS issues, and payroll problems
• Time in business: Not a factor
• Annual revenue: At least $30,000 in invoices per month

Paragon is like FundThrough, in that neither company has a defined minimum credit score requirement. However, unlike most of the providers we have reviewed, Paragon will work with businesses that have more serious credit problems like IRS issues.

What Paragon Financial Group Invoice Financing Is Missing

One drawback to Paragon Financial Group is that it is purchasing the A/R, unlike BlueVine. However, it can work with customers with significant credit problems, which is a benefit.

What Users Think About A/R Financing With Paragon Financial Group

We compiled user reviews from around the web and determined that Paragon Financial Group reviews are positive. Users who recommend Paragon Financial Group were impressed with the responsive customer support team. Customers also said that the invoice factoring company has helped them solve cash flow problems. No negative reviews were found at the time this article was written.

Harper Partners: Best Recourse Accounts Receivable Financing Company

The A/R financing product offered by Harper Partners is good for businesses who want recourse factoring. Harper Partners offers advance rates up to 90% on a recourse basis, meaning borrowers are responsible if customers don’t pay. Plus, Harper Partners offers up to $400,000 in working capital financing, with rates ranging from 15% to 45% APR, for borrowers with bad credit, which is a bonus.

Harper Partners A/R Financing Costs

• Discount rate: 1% to 3% per month
• Expected APR: 15% to 45%
• Origination fee: A small one-time fee is possible
• Additional fees: None

Harper Partners’ fees are in line with other providers that offer the option of nonrecourse accounts receivable financing. While their upper limit of 3% exceeds Paragon Financial Group’s upper limit of 2%, Harper Partners offers borrowers the choice of recourse or nonrecourse financing. Overall, both Harper Partners and Paragon have very similar fee structures, and comparable expected APRs.

Harper Partners A/R Financing Terms

• Funding amount: $50,000 to $5 million
• Advance rate: Up to 90%
• Repayment terms & schedule: Repaid as invoices are paid
• Personal guarantee: Possible
• Speed to funding: Two to five business days

Harper Partners requires a minimum of $50,000 in accounts receivables per month be financed, which is the highest minimum requirement of any of the providers on our list. Paragon Financial Group is the second highest, requiring $25,000 per month. Harper Partners works with startup businesses and those that have had recent financial troubles, making it a good option for businesses that may not qualify for traditional financing.

Harper Partners Receivables Financing Additional Features

• Customer interaction: Available upon request
• Assignment of invoices: Required
• Type of invoice financing agreement: Recourse is standard; nonrecourse possible with a higher discount rate and lower advance rate

Harper Partners will only contact customers if borrowers want them to do so. It will send invoices in the business. If customers are paying slowly, and it comes time to collect, Harper Partners is available to support business owners through polite customer service representatives. It directs all invoice payments to an account in the business name.

Harper Partners A/R Financing Minimum Qualifications

• Credit score: Not a factor, but must not have a history of serious legal or tax issues
• Time in business: Not a factor
• Annual revenue: At least $50,000 in invoices per month

Similar to BlueVine, to qualify, applicants must work with business-to-business (B2B) or business-to-government (B2G) customers. The invoices must be due and payable within 90 days and not pledged to another lender. Unlike some other providers, a credit score is not a factor for Harper Partners. However, Harper Partners does not fund businesses with serious legal issues. If a business has legal troubles, Paragon may be a good fit.

What Harper Partners Invoice Financing Is Missing

Harper Partners does not require a minimum credit score. However, unlike Paragon Financial Group, it cannot work with the business if it has a history of serious tax or legal issues. If this is the situation, then a company like Paragon Financial may help.

What Users Think About Accounts Receivable Financing With Harper Partners

We considered user reviews from around the web and determined that there are too few customer reviews of Harper Partners because it is a relatively new company. We expect that businesses will like the transparency that appears to be offered by this company. A drawback might be that it doesn’t offer factoring to businesses with a history of serious tax or legal issues.

Crestmark: Another Accounts Receivable Financing Company for Growing Companies

Crestmark’s A/R financing has customized pricing making it suitable for a wide range of borrowers, from startups to those with annual revenues in the millions. With invoice financing up to $7.5 million, this means there is room for the relationship with Crestmark to grow. As a business grows, Crestmark has a wide variety of options to help it, including business lines of credit and Small Business Administration (SBA) loans.

Crestmark A/R Financing Costs

• Discount rate: Customized for each borrower
• Additional fees: Any additional fees will be disclosed in the A/R financing agreement

Similar to Harper Partners, Crestmark offers both recourse and nonrecourse invoice financing. Business owners can expect to pay a higher fee for nonrecourse financing because the invoice financing companies have to spend more time working on the account. The fee Crestmark charges is related to the service provided to the business, with recourse invoice factoring offering the lowest rates.

Crestmark A/R Financing Terms

• Funding amount: Up to $7.5 million
• Advance rate: Up to 90%
• Repayment terms & schedule: Repaid as invoices are paid
• Personal guarantee: Possible
• Speed to funding: Three to five days

The time Crestmark will hold an unpaid invoice before requiring a business to collect on it will depend on the specific A/R financing agreement. If a business needs nonrecourse A/R financing, then Crestmark may assist it, but it will require a lower advance rate and may be more expensive. Paragon and Harper Partners are also options for nonrecourse financing.

Crestmark Receivables Financing Additional Features

• Customer interaction: Depends on the receivables financing arrangement
• Assignment of invoices: Required
• Type of invoice financing agreement: Recourse or nonrecourse

Compared to other providers like BlueVine and Paragon, Crestmark offers a more customized A/R financing experience. Crestmark will work with business owners to determine the receivables financing arrangement that works best. As it offers both recourse and nonrecourse A/R financing, the level of interaction it has with customers will vary. One service it can provide includes investigating and approving a customer for credit terms and collections.

Crestmark A/R Financing Minimum Qualifications

• Credit score: Not a determining factor
• Time in business: Not a determining factor
• Annual revenue: Not a determining factor

Crestmark can provide financing to companies as small as startups in most industries, making it great for growing companies wanting to develop a relationship. As with Harper Partners and most invoice financing companies we reviewed, it relies more on the qualifications of the debtors than it does on the applicant.

What Crestmark Invoice Financing Is Missing

The most traditional of the A/R financing companies we reviewed, Crestmark isn’t as transparent about its pricing and qualifications as the others on our list. This may show that Crestmark is more focused on providing custom solutions than it is on making sure its customers fit within a specific credit box.

What Users Think About A/R Financing With Crestmark

We considered user reviews from around the web and determined most Crestmark reviews are positive. Some pros include the fact that Crestmark has no or only limited restrictions on the industries in which it will work, and that its customer service representatives are helpful. A negative is that Crestmark offers its best discount rates with recourse financing. However, this practice is not surprising.

Bottom Line

All six of the accounts receivable financing companies reviewed are good options for filling short-term cash flow gaps. Selecting the right A/R financing provider depends on the volume of invoices a business plans to factor and the familiarity of the lender with the specific industry.