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
On December 27, 2020, the federal government authorized an additional $284.5 billion in funding for the Paycheck Protection Program (PPP). Under this new allocation, PPP loans are available to first-time borrowers as well as businesses that have already received one PPP loan. Similar to prior funding rounds, this allocation will likely be depleted quickly. We recommend submitting an application through Lendio, a broker that has handled—and received funding for—thousands of PPP loans since the program’s inception.
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
 | |||
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
 | |||
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.
Jimmy Peebles
Looking for 2% first 30 days and 1% on each 30 afterwards up to 90 days based on 80% with 20% at end of factoring.
Amanda Norman
Hi Jimmy,
Thanks for visiting the site! You’ll need to contact one of the invoice factoring companies directly to discuss the invoice factoring rates, costs, and fees that you’re interested in.
Best wishes.
Mandy, Moderator
Charles Sheppard
Great article! Very thorough.
We actually wrote a similar article with particular advice for those in the trucking industry on how to choose the best factoring company (accutraccapital.com/resources/blog/how-to-choose-the-best-factoring-company-for-trucking). With so many companies out there it can be difficult to know what criteria to apply when selecting the right company to factor with. We too are a factoring company (Accutrac Capital Solutions Inc) exclusively servicing the trucking industry. Would love if you considered us the next time you write on this category. Thanks.
Amanda Norman
Hi Charles,
Glad you liked the article. We typically review and update our buyer’s guides once per year and can take a look at your service then!
Thanks for stopping by and sharing!
Mandy, Moderator
Scott Lanaway
Hi there. Great post! We work with Liquid Capital, would love to see them on your list. Check out their ‘Invoice Factoring Guidebook’. It gets in to the ins and outs of different Factoring providers, terms, options etc. They also offer ABL etc. They can work with smaller fundings all the way up to $10 million.
Crystalynn Shelton
Hi Scott, glad you enjoyed our article on the 6 Best Invoice Factoring Companies. We will definitely check out Liquid Capital when we update this article later in the year.
Best-
Crystalynn Shelton, CPA
Troy Cartmill
An amazing factoring company thats not on this list is Crown Financial . It’s a smaller company so customer service is amazing. They can fund up to 25 Million, offer low rates and can give funding in 24 hours.
Laura Handrick
Troy, Thanks for sharing your experience with Crown. We’ll check it out when we next update this article.
Best!
Laura, Staff Writer
Jason Krasick
We’re in the wholesale and distribution business and sometimes face cash flow issues with larger orders. Which company is the better choice for us?