The best invoice factoring company will vary based on your specific company’s needs and circumstances. Many of the best factoring providers offer funding with low fees, quick funding of three days or less, and the ability to advance at least 90% of the amounts owed to you. You may also be able to find lenders with easy paperwork requirements and flexible eligibility criteria.
While the best factoring company will vary based on your circumstances, I’ve selected those that have a combination of all of the features mentioned above. As a result, you should be able to find one equipped to meet your needs. Here are my picks for the best factoring companies:
| Provider | Best for | Maximum funding amount |
|---|---|---|
| FundThrough | Best overall for terms and financing costs | Varies |
| Clarify Capital | Multiple financing options | Varies |
| Riviera Finance | Startups and smaller funding amounts | $2 million |
| Scale Funding | On-demand funding needs | Varies |
| Universal Funding Corporation | Long-term factoring | $5 million |
| RTS Financial | Trucking companies | Varies |
| altLINE | Large recurring factoring needs | $4 million |
- Best invoice factoring companies at a glance
- FundThrough: Best overall for terms and financing costs
- Clarify Capital: Best for multiple financing options
- Riviera Finance: Best for startups and smaller funding amounts
- Scale Funding: Best for on-demand funding needs
- Universal Funding Corporation: Best for long-term factoring
- RTS Financial: Best for trucking companies
- altLINE: Best for large recurring factoring needs
- How I chose the best factoring companies
- Alternatives to invoice factoring
- Frequently asked questions (FAQs)
- Bottom line
Best invoice factoring companies at a glance
| Maximum funding amount | Estimated fees per 30 days | Advance rate | Minimum annual revenue | Time to funding | Factoring contract requirement | |
|---|---|---|---|---|---|---|
| FundThrough | Varies | 1.9%-2.9% | 100% | $100,000 | 1-5 days | None |
| Clarify Capital | Varies | 0.5% per month and up | 100% | $120,000 | As fast as 24 hours | Varies |
| Riviera Finance | $2 million | 2% | 95% | None | 4-7 days | 6 months |
| Scale Funding | Varies | 2% | 90% | $600,000 | 1-4 days | None |
| Universal Funding Corporation | $5 million | 0.55% | 95% | $300,000 | 48 hours | 12 months |
| RTS Financial | Varies | Varies | 97% | None | 24-48 hours | Not stated |
| altLINE | $4 million | 1% to 5% | 90% | $180,000 recommended | 48 hours | 12 months |
FundThrough: Best overall for terms and financing costs
 | |
|---|---|
| Rates and Terms | |
| Estimate of Fees | 1.9%-2.9% per 30 days |
| Estimated Annual Percentage Rate (APR) | Varies |
| Loan Amount | Varies |
| Repayment Term | Up to 90 days |
| Advance Rate | 100% |
| Time to Funding | 1 to 5 days after application |
| Factoring Contract Required? | No |
| Qualifications | |
| Annual Revenue | $100,000 |
| Time in Business | None |
| Visit FundThrough | |
Why I like FundThrough
I selected FundThrough as the best overall factoring company because of its combination of its competitive rates, flexible funding terms, and its quick and easy funding process. Notably, its funding process stands apart from many competitors because of how simple it is to get funds.
FundThrough works best when linked with supported accounting software such as QuickBooks or OpenInvoice. You can then select the invoices you’d like to fund, and FundThrough’s built-in AI technology will instantly determine the funding amount you’re eligible to receive. Qualified invoices can be funded within 24 hours. If you do not use a supported platform such as QuickBooks or OpenInvoice, you still have the option to upload invoices manually.
FundThrough typically works with businesses invoicing large companies, such as big-box stores, located in Canada or the US. It does not issue funding for construction or real estate; check our guide to the best construction factoring companies for options.
To learn more or to apply, you can visit the FundThrough website.
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Clarify Capital: Best for multiple financing options
 | |
|---|---|
| Rates and Terms | |
| Estimate of Fees | 0.5% per month |
| Estimated APR | Varies |
| Loan Amount | Varies |
| Repayment Term | Varies |
| Advance Rate | 100% |
| Time to Funding | As fast as 24 hours |
| Factoring Contract Required? | May vary |
| Qualifications | |
| Annual Revenue | $120,000 |
| Time in Business | 6 months |
| Visit Clarify Capital | |
Why I like Clarify Capital
Clarify Capital is a business loan broker with over 75 lending partners in its network. This makes it a good option if you’re looking to get multiple financing options. It assigns a dedicated funding specialist to each loan application to match you with the right lender for your circumstances, needs, and goals.
Working with a broker can save you time and money because you’ll have more chances to get approved without the need to apply separately to multiple lenders. You’ll also have better odds of finding more favorable financing rates and terms. In addition to providing personalized recommendations and guidance, Clarify Capital can assist with completing loan paperwork.
To learn more or to apply, visit the Clarify Capital website. Applications can be completed in just minutes, with no impact on your credit score. You can also check out the company’s other lending products, including term loans, credit lines, SBA loans, equipment financing, and merchant cash advances.
Riviera Finance: Best for startups and smaller funding amounts
 | |
|---|---|
| Rates and Terms | |
| Estimate of Fees | 2% and up per 30 days |
| Estimated APR | 24% and up |
| Loan Amount | Up to $2 million |
| Repayment Term | Up to 60 days |
| Advance Rate | 95% |
| Time to Funding | Typically between 4 to 7 days |
| Factoring Contract Required? | Yes, typically 6 months |
| Qualifications | |
| Annual Revenue | None |
| Time in Business | None, but 3 months is recommended |
| Visit Riviera Finance | |
Why I like Riviera Finance
Riviera Finance offers some of the lowest funding amounts in this guide. However, it is still an excellent option because of its competitive rates.
It serves clients in a wide range of industries. Most businesses are eligible as long as the terms for payment do not exceed 60 days. Some examples of industries served include trucking, personnel agencies, printing companies, manufacturers, wholesalers, and armed guard services. Riviera Finance typically works with clients that are newer businesses and those that earn up to $2 million in monthly revenue.
The company can also offer financing throughout the US and Canada. Other products offered include small business financing, payroll factoring, and financing for working capital.
Head over to the Riviera Finance website to learn more or to apply.
Scale Funding: Best for on-demand funding needs
 | |
|---|---|
| Rates and Terms | |
| Estimate of Fees | Varies but typically 2% per 30 days |
| Estimated APR | 24% and up |
| Loan Amount | Varies |
| Repayment Term | Varies |
| Advance Rate | 90% |
| Time to Funding | 1 to 4 days after application |
| Factoring Contract Required? | None |
| Qualifications | |
| Annual Revenue | $600,000 |
| Time in Business | None |
| Visit Scale Funding | |
Why I like Scale Funding
While most lenders require you to sign a contract agreeing to factor receivables for a minimum length of time, Scale Funding allows businesses to factor with month-to-month contracts. As a result, this can make the company an excellent option if you don’t have regular factoring needs.
Additional flexibilities and value-added perks you’ll get with Scale Funding include the ability to factor invoices that are up to 45 days past due, a complimentary credit analysis of customers, and the option to factor invoices for both business-to-business and business-to-government customers. Eligible customers can also take advantage of treasury services, fuel cards, accounts receivable management, and other discounts.
To learn more, visit the Scale Funding website. There, you can get a quote in under 15 minutes and get funded in as little as 24 hours.
Universal Funding Corporation: Best for long-term factoring
 | |
|---|---|
| Rates and Terms | |
| Estimate of Fees | 0.55% to 2% per 30 days |
| Estimated APR | Varies |
| Loan Amount | Up to $5 million |
| Repayment Term | Up to 90 days |
| Advance Rate | 95% |
| Time to Funding | 1 to 2 days |
| Factoring Contract Required? | 12 months |
| Qualifications | |
| Annual Revenue | $300,000 but can vary |
| Time in Business | None |
| Visit Universal Funding Corporation | |
Why I like Universal Funding Corporation
Universal Funding Corporation has a minimum time commitment of 12 months to factor invoices, but because it has one of the lowest starting rates, it can be an excellent choice for businesses with recurring factoring needs. It can work with clients in a wide range of industries but commonly works with those in manufacturing. Other common industries include those with lengthy payment cycles—such as construction, oil, and gas.
If you decide to work with Universal Funding Corporation, you’ll have a dedicated account representative to oversee your account and answer any questions you may have. The company also retains an in-house team of underwriters, which means you can get quick responses to applications for additional funding needs. Fees are minimal and are generally limited to the following:
- Credit approvals: $35
- Lockbox fee: $50
- Outgoing wire fees: $30
If Universal Funding Corporation sounds like it may be a good fit for your business needs, you can visit its website for more information. There, you can find a toll-free number you can call to learn more about its programs. You can also complete an online application to begin the process.
RTS Financial: Best for trucking companies
 | |
|---|---|
| Rates and Terms | |
| Estimate of Fees | Not stated |
| Estimated APR | Varies |
| Loan Amount | Varies |
| Repayment Term | Typically 30 to 60 days |
| Advance Rate | Up to 97% |
| Time to Funding | 1 to 2 days after having applied |
| Factoring Contract Required? | Not stated |
| Qualifications | |
| Annual Revenue | None ($150,000 for nontrucking companies) |
| Time in Business | Not stated |
| Visit RTS Financial | |
Why I like RTS Financial
RTS Financial offers a factoring product that can be especially helpful to those in the trucking industry. This is because it has partnered with outside companies to provide additional discounts to trucking factoring customers. Some examples include fuel savings with its fuel card and loyalty rewards programs.
Customers also get access to the company’s mobile and web app, RTS Pro. This allows you to upload invoices for funding, locate fuel savings, run credit checks, search and book loads, and more. Other tools available from RTS Financial allow you to manage invoices and other aspects of your trucking business, including dispatch, accounting, reporting, and driver communications.
Head to the RTS Financial website to learn more or to request a callback to begin the application process.
altLINE: Best for large recurring factoring needs
 | |
|---|---|
| Rates and Terms | |
| Estimate of Fees | 1% to 5% |
| Estimated APR | Varies |
| Loan Amount | $4 million but may vary |
| Repayment Term | Typically up to 90 days |
| Advance Rate | 90% |
| Time to Funding | As fast as 2 days after application |
| Factoring Contract Required? | Yes, typically 12 months |
| Qualifications | |
| Annual Revenue | $180,000 recommended |
| Time in Business | None |
| Visit altLINE | |
Why I like altLINE
altLINE works mostly with clients who can commit to factoring a large amount of receivables regularly. It also offers a high advance rate and low fees, making it my pick as the best provider for businesses seeking large recurring factoring products.
If you expect to factor at least $15,000 monthly, altLINE could be a good fit for you. Many of its clients factor a significantly larger amount each month, and you’ll be required to commit to a minimum of 12 months for factoring. Otherwise, it’s relatively easy to qualify as there’s no time in business requirement.
If you meet altLINE’S requirements, you could get $4 million in funding up to 90% of the outstanding invoice. Customers have up to 90 days to pay the invoice, and rates start as low as around 0.5% for the first 30 days.
You can visit altLINE’s website to learn more or to start your application. There are no application fees, and you can get a free online quote. If you decide to move forward with your application, you can prepare certain documents to expedite your funding. Commonly requested documents include copies of invoices you want to have funded, an accounts receivable aging report, and business bank statements.
How I chose the best factoring companies
I considered the following when selecting the best invoice factoring companies:
- Rates and fees charged: I compared factoring fees, discount rates, and additional charges to identify providers with competitive and transparent pricing.
- Contract requirements and minimum factoring period: I evaluated contract terms, including long-term commitments, minimum volume requirements, and early termination penalties.
- Qualification requirements: I reviewed eligibility criteria such as time in business, monthly invoice volume, customer creditworthiness, and industry restrictions.
- Application, approval, and funding speeds: I assessed how quickly companies can process applications, approve accounts, and provide access to funding.
- Estimated APRs: I compared estimated annual borrowing costs to help determine the overall affordability of each factoring provider.
- Advance rates: I examined the percentage of an invoice’s value that businesses can receive upfront, as higher advance rates can improve cash flow.
- Customer reviews and ratings: I considered borrower feedback and third-party ratings to evaluate customer service, reliability, and overall satisfaction with each provider.
Alternatives to invoice factoring
Unlike getting other types of small business loans, it can be easier to qualify for invoice factoring since it doesn’t rely as heavily on your own credit or income profile. However, fees for this type of financing can add up, and it may not be the most economical way to solve cash flow issues. Here are some alternatives you can consider:
- Small business line of credit: This is a revolving line of credit that allows you to draw funds on an as-needed basis. Bluevine is an excellent option, as it can approve your loan and fund within 24 hours. Visit Bluevine to see its competitive rates.
- Small business term loan: Term loans can be a good choice if you know how much funding you need and don’t anticipate recurring needs for more funds. Term loans can include many different types of loans, including working capital loans and SBA loans. If you need a place to start, see our guides to the best working capital loans and the leading SBA lenders.
- Rollover for business startups: If you don’t need funds quickly, you can consider a rollover for business startups (ROBS). This gives you tax- and penalty-free access to your retirement accounts. A ROBS isn’t a loan, you won’t pay interest charges. Visit Guidant Financial, an excellent provider that can walk you through the process.
Our guide on how to get a small business loan will walk you through the process. We also included a few things you can expect after applying.
Frequently asked questions (FAQs)
In addition to finding a company that has qualification requirements you can meet, you should consider the fees and terms offered. Think about how often you may need to factor, as some companies require a minimum time commitment. If you don’t have frequent factoring needs, choosing a provider with a lower rate could end up costing you more if it also requires a contract to factor for longer than you need.
If you’re waiting for payment from customers, invoice factoring advances you a percentage of the amount you’re owed. This is a way to get funding more quickly before your customers have issued payment to you. You can read more about this in our guide on how invoice factoring works.
With invoice factoring, you could be liable for payment if your customer does not pay the factoring company. This risk can be mitigated if you opt for non-recourse factoring. Non-recourse factoring, however, tends to carry higher fees.
Bottom line
If you’ve issued invoices to customers but need the money more quickly, invoice factoring can help you get an advance on those funds. Factoring companies can typically provide anywhere from 80% to 100% of the outstanding amount of your invoices in just a few days. However, factoring can be more expensive than other financing options, so you should consider other types of loans if you’re not in a hurry to get funding.
