With invoice factoring, a business can convert unpaid invoices into immediate cash through an advance of 80% to 90% of the total amount owed. We reviewed more than two dozen invoice factoring companies to select the six best invoice factoring providers. Each company selected earns stellar reviews from small business owners. We ranked the top invoice factoring companies based on accessibility, costs, terms, and requirements. Our analysis included more than 30 individual variables across over 50 factoring companies.
Invoice Factoring Companies | Best for |
|---|---|
Quick invoice factoring up to $5 million | |
Nonrecourse factoring up to $10 million | |
Monthly contract factoring up to $20 million | |
Short-term invoice factoring up to $5 million | |
Freight factoring up to $20 million |
*Last Updated: January 2021
How We Evaluated Invoice Factoring Companies
After considering some of the newest players in the invoice factoring space and the most popular invoice factoring companies, we chose the five best factoring companies. In establishing our review criteria, we considered the pain points we’ve heard small business owners express, such as how much they can receive and how quickly they can access funding based on assets.
Overview of the Best Invoice Factoring Companies
Learn More | Max Funding Amount | Expected APR | Minimum Annual Revenue | Speed |
|---|---|---|---|---|
$5 million | 13% to 70% | $100,000 | 1 day | |
$10 million | 16% to 55% | $360,000 | 3 days | |
$20 million | 12% to 55% | $600,000 | 3 days | |
$5 million | 9% to 55% | $360,000 | 2 days | |
$20 million | 13% to 55% | $100,000 | 5 days | |
Last updated on 05/01/20 | ||||
The best invoice factoring companies include BlueVine, eCapital, TCI Business Capital, altLINE, and Triumph Business Capital.
BlueVine: Best Overall
 | |||
Maximum Funding | $5 million | Advance Rate | 85% to 90% |
Discount Rate | 0.25% to 1.35% weekly | Minimum Annual Revenue | $100,000 |
Expected APR | 13% to 70% | Funding Speed | 1 day |
Small businesses needing to factor invoices from $5,000 to $5 million per month at starting 0.25% weekly discount rates will benefit from BlueVine. BlueVine doesn’t directly interact with customers and does not collect invoices on behalf of the business. However, unlike an invoice financing provider, BlueVine still requires the assignment of invoices.
eCapital: Nonrecourse Factoring
 | |||
Maximum Funding | $10 million | Advance Rate | 80% to 90% |
Discount Rate | 1.25% to 2.5% per 30 days | Minimum Annual Revenue | $360,000 |
Expected APR | 16% to 55% | Funding Speed | Up to 10 days |
eCapital is great for small businesses as it can help in most situations, including payroll or legal troubles. It offers factoring limits, from $30,000 to $10 million monthly and rates of 1.25% to 2.5% per 30 days. Only TCI Business Capital and Triumph Business Capital offer higher limits of $20 million.
TCI Business Capital: Monthly Contracts
 | |||
Maximum Funding | $20 million | Advance Rate | Up to 90% |
Discount Rate | 1% to 4% per month | Minimum Annual Revenue | $600,000 |
Expected APR | 12% to 55% | Funding Speed | Up to 5 days |
TCI Business Capital is among the best invoice factoring companies because it offers a month-to-month contract and reevaluates the discount rate every month to see if it can be reduced. If factoring volume increases or customers pay their invoices quicker, the rate of 1% to 4% could decrease. This is great compared to altLINE, which locks in a yearly rate.
altLINE: Net Terms Under 30 Days
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Maximum Funding | $5 million | Advance Rate | 90% |
Discount Rate | 0.75% to 3.0% per 30 days | Minimum Annual Revenue | $360,000 |
Expected APR | 9% to 55% | Funding Speed | Up to 7 days |
altLINE is good for businesses with net terms less than 30 days needing up to $5 million as it offers lower rates for shorter terms. If invoices are paid in less than 30 days—usually 15—business owners may receive a discount rate as low as 0.75%. Other than BlueVine, that is the lowest discount rate offered by the factoring companies we reviewed.
Triumph Business Capital: Freight Factoring
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Maximum Funding | Up to $20 million | Advance Rate | 90% |
Discount Rate | 1% to 4% per month | Minimum Annual Revenue | $100,000 |
Expected APR | 12% to 72% | Funding Speed | Up to 7 days |
Triumph Business Capital offers recourse or nonrecourse factoring, with 77% of its business coming from freight factoring. Triumph Business Capital requires at least a 500 personal credit score. Triumph Business Capital offers advance rates up to 90%, no minimum limits up to $20 million, and monthly discount rates as low as 1% to 4%.
Bottom Line
Invoice factoring is a good tool for businesses needing to cover cash flow gaps while waiting for customer payments. Even businesses with credit problems can qualify. Many invoice factoring companies provide valuable services such as accounts receivable management and collections at no additional cost. The best factoring companies we reviewed are good options for small businesses.
