Businesses use invoice factoring to convert unpaid invoices into immediate cash through an advance of up to 90% of the invoice amount. We reviewed more than one dozen invoice factoring companies based on funding time, rates, terms, and customer service. Based on our review, here are our recommendations for the best invoice factoring providers.
BlueVine: Best Overall
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Maximum Funding | $5 million | Advance Rate | Up to 90% |
Discount rate | 0.25% to 1.35% weekly | Minimum Annual Revenue | $120,000 |
Expected APR | 13% to 70% | Funding Speed | 24 hours |
Time in Business | 3 months | Minimum FICO | 530 |
Why we like BlueVine: 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 doesn’t collect invoices on behalf of the business. However, unlike an invoice financing provider, BlueVine still requires the assignment of invoices. The BlueVine application process is simple and entirely online.
Riviera Finance: Fast Funding and No Minimum Requirements
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Maximum Funding | $2 million | Advance Rate | Up to 95% |
Discount rate | Starts at 2% per 30 days | Minimum Annual Revenue | None |
Expected APR | 24% to 70% | Funding Speed | 24 hours after approval |
Why we like Riviera Finance: Riviera Finance offers funding within 24 hours of approval and will advance up to 95% of your invoices. Riviera also offers nonrecourse factoring, which means you don’t have to repurchase an invoice if a customer fails to pay. While nonrecourse factoring can yield a higher discount rate, it does offer protection. An added perk is that there’s no monthly minimum revenue requirement, which is unusual in the invoice factoring industry.
TCI Business Capital: No Long-term Contracts
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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 3 days |
Why we like TCI Business Capital: TCI Business Capital ranks in our best invoice factoring companies article because it offers a month-to-month contract. TCI also re-evaluates the discount rate every month to see if it can be reduced. If factoring volume increases or customers pay their invoices quicker, the discount rate may decrease. Additionally, TCI doesn’t lock businesses into long-term contracts. Most invoice factoring companies will require a multimonth or longer agreement.
altLINE: Short-term Invoice Factoring
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Maximum Funding | $4 million | Advance Rate | Up to 90% |
Discount rate | 0.5% to 3.0% per 30 days | Minimum Annual Revenue | $180,000 |
Expected APR | 6% to 55% | Funding Speed | 2 days |
Why we like altLINE: altLINE is good for businesses with net terms of 30 days or less that need up to $4 million. altLINE offers lower rates for shorter terms; if invoices are paid in less than 30 days, business owners may receive a discount rate as low as 0.75%. Other than BlueVine, it’s offering the lowest discount rate by any of the factoring companies we reviewed. However, altLINE does require a one-year commitment.
Triumph Business Capital: Nonrecourse Factoring
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Maximum Funding | Up to $20 million | Advance Rate | Up to 90% |
Discount rate | 1% to 4% per month | Minimum Annual Revenue | $100,000 |
Expected APR | 12% to 72% | Funding Speed | Up to 7 days |
Time in Business | 1 year | Minimum FICO Score | 500 |
Why we like Triumph Business Capital: Triumph Business Capital offers both recourse and nonrecourse factoring. Triumph Business Capital offers advance rates up to 90%, factoring capacity of up to $20 million, and monthly discount rates as low as 1% to 4%. Unlike many other invoice factoring companies, Triumph requires that businesses have been operating for a year and that their owners have at least a FICO score of 500 to qualify.
Visit Triumph Business Capital
How We Evaluated Invoice Factoring Companies
When evaluating factoring companies, we considered the overall cost and terms that each of these companies offered. Those considerations included discount rate, advance rate on each invoice, and speed in receiving funding, followed by requirements like credit score and the time that a business needs to be in operation. Each of these providers also has positive customer service reviews through the Better Business Bureau (BBB) and online reviews.
Bottom Line
Invoice factoring is a good option for businesses that need to cover cash flow gaps while awaiting customer payments. Businesses that haven’t been in operation for very long, as well as those with poor credit, can qualify provided their customers have a history of paying invoices on time. Many invoice factoring companies also provide valuable services, such as accounts receivable (A/R) management and collections, at no additional cost. The best factoring companies we reviewed are good options for small businesses.
