The best invoice factoring companies will have competitive rates and the ability to advance at least 90% of the amount of invoices owed to you from your customers. These companies should also be able to fund in less than three days.
Since the best invoice factoring company will vary depending on your unique business circumstances, we’ve selected factoring providers with a wide variety of terms and qualification requirements.
Here are our eight picks for the best factoring companies:
- FundThrough: Best overall for terms and financing costs
- eCapital: Best for transportation companies seeking fast funding
- Riviera Finance: Best for startups and smaller funding amounts
- altLINE: Best for businesses with large amounts of recurring factoring needs
- TCI Business Capital: Best flexible terms for high-revenue businesses
- Universal Funding Corporation: Best for affordable long-term financing
- RTS Financial: Best for trucking companies that need large financing
- Triumph Business Capital: Best for nonrecourse transportation factoring
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 | |
|---|---|---|---|---|---|---|
 | Varies | 2.75% and up | 100% | $100,000 | 2 to 5 days | None |
 | $30 million | 1% | 80% to 100% | None | 48 hours | Yes |
 | $2 million | 2% | 95% | None | 2 to 5 days | 6 months |
 | $4 million | 0.5% | 80% to 90% | $180,000 | 48 hours | 12 months |
 | $10 million | 2% | 90% | $600,000 | 1 to 4 days | None |
 | $20 million | 0.55% | 95% | $300,000 | 48 hours | 12 months |
 | Varies | 1.5% | 97% | None | 24 to 48 hours | Not stated |
 | Varies | 1% | 100% | $100,000 recommended | 24 hours | Not stated |
FundThrough: Best Overall for Terms and Financing Costs
 | |
Rates & Terms | |
Estimate of Fees |
|
Estimated Annual Percentage Rate (APR) | 33% to 70% |
Loan Amount | Varies |
Repayment Term | Up to 90 days |
Advance Rate | 100% |
Time to Funding | 2 to 5 days after application |
Factoring Contract Required? | No |
Qualifications | |
Annual Revenue | $100,000 |
Time in Business | None |
Why We Like FundThrough
While FundThrough’s rates may seem higher compared to the other companies we’ve selected, these rates are far easier to obtain. Other companies, by comparison, may advertise lower rates but require a business to be exceptionally well-qualified. FundThrough is highly transparent with rates and fees and also offers easy qualification requirements.
It states that its invoice funding is best suited for companies that regularly invoice a single customer $15,000 or more. With FundThrough, there is no set maximum amount that can be funded for its invoice factoring product. Rather, the amount will depend on the amount of your sales. As your company grows, so will your ability to get additional funding.
If you decide to work with FundThrough, you can connect your accounting software to easily choose the invoices you’d like to fund. It currently supports QuickBooks and Enverus. Following your initial account setup and approval, you can get subsequent funding in as little as 24 hours.
FundThrough does not issue funding for construction or real estate, but you can review our guide of the best construction factoring companies for these options.
To learn more or to apply, you can visit the FundThrough website.
eCapital: Best for Transportation Companies Seeking Fast Funding
| |
Rates & Terms | |
Estimate of Fees | As low as 1%, but can vary |
Estimated APR | Varies |
Loan Amount | Up to $30 million |
Repayment Term | Up to 90 days |
Advance Rate | 80% to 100% |
Time to Funding | Typically 48 hours after applying |
Factoring Contract Required? | Yes |
Qualifications | |
Annual Revenue | None |
Time in Business | None |
Why We Like eCapital
eCapital can work businesses in a wide variety of industries but can offer its best terms to those in the transportation industry. Funding speeds, for instance, can be offered in as little as 48 hours for transportation businesses. Nontransportation companies, on the other hand, may need to wait up to several weeks for approval and funding.
Like many other companies, eCapital determines specific pricing and terms on a case-by-case basis. Loan amounts and credit limits are based on a review of your company’s customers. Similarly, rates are determined by things like invoice volume, creditworthiness of your customers, and whether you want to get recourse or nonrecourse factoring.
You can head over to the eCapital website to learn more or to submit an application online.
Riviera Finance: Best for Startups and Smaller Funding Amounts
 | |
Rates & 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 | 2 to 5 days after application |
Factoring Contract Required? | Yes, minimum 6 months |
Qualifications | |
Annual Revenue | None |
Time in Business | None, but 3 months is recommended |
Why We Like Riviera Finance
Riviera Finance offers some of the lowest funding amounts in our 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 U.S. 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.
altLINE: Best for Businesses With Large Amounts of Recurring Factoring Needs
 | |
Rates & Terms | |
Estimate of Fees | 0.5% to 3.5% per 30 days |
Estimated APR | 20% and up |
Loan Amount | $4 million, but may vary |
Repayment Term | Typically up to 90 days |
Advance Rate | 80% to 90% |
Time to Funding | As fast as 2 days after application |
Factoring Contract Required? | Yes, minimum 12 months |
Qualifications | |
Annual Revenue | $180,000 |
Time in Business | None |
Why We 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 our 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.
TCI Business Capital: Best Flexible Terms for High-revenue Businesses
 | |
Rates & Terms | |
Estimate of Fees | Varies, but typically 2% per 30 days |
Estimated APR | 24% and up |
Loan Amount | $50,000 to $10 million |
Repayment Term | Up to 120 days |
Advance Rate | 90%, but can vary |
Time to Funding | 1 to 4 days after application |
Factoring Contract Required? | None |
Qualifications | |
Annual Revenue | $600,000 |
Time in Business | None |
Why We Like TCI Business Capital
TCI Business Capital requires no long-term commitment for its factoring products. You can choose to factor your invoices for as long or short of a period as you need, which can be well-suited for seasonal businesses whose cash flow needs may fluctuate throughout the year.
With that being said, TCI Business Capital does have the highest revenue requirement on our list, which can make it difficult to qualify for.
It offers complimentary services, which include a credit analysis and risk assessment of potential new customers. You can also get treasury services to assist with wire transactions and funding to third-party accounts. Accounts receivable (A/R) management is also provided to help with the collection of payment on your accounts.
To learn more about whether TCI Business Capital may be a good fit, check out the TCI Business Capital website. There, you can also submit an online application.
Universal Funding Corporation: Best for Affordable Long-term Financing
 | |
Rates & Terms | |
Estimate of Fees | 0.55% to 2% per 30 days |
Estimated APR | Varies |
Loan Amount | $25,000 to $20 million |
Repayment Term | Up to 90 days |
Advance Rate | 95% |
Time to Funding | As fast as 2 days from application |
Factoring Contract Required? | Yes, minimum 12 months |
Qualifications | |
Annual Revenue | $300,000, but can vary |
Time in Business | None |
Why We Like Universal Funding Corporation
Universal Funding Corporation offers one of the lowest rates available. However, because of its requirement for a 12-month minimum commitment to factor invoices, this may not be a good fit for businesses that only need short-term or intermittent factoring needs.
altLINE is the other provider in our guide that has more competitive pricing. Comparing these two companies, Universal Funding may be a better option for you if your factoring amounts vary greatly each month. By comparison, altLINE’s clients have more consistent needs at anywhere from $15,000 to $20,000 monthly.
Universal Funding Corporation retains an in-house underwriting team, so you can get quick responses to any questions you have. You’ll also have a dedicated account representative with minimal fees, which include the following:
- Credit approvals: $35
- Lockbox fee: $50
- Outgoing wire fees: $30
There are no costs for same-day funding, overadvances, or monthly access fees.
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 That Need Large Financing
| |
Rates & Terms | |
Estimate of Fees | 1.5% to 5% per 30 days |
Estimated APR | 24% to 60% |
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 |
Why We Like RTS Financial
If you need large funding amounts, RTS Financial can be a good option. It has no stated maximum funding amount, as it determines it based on the amount of your outstanding invoices and creditworthiness of customers. While trucking companies may be a more ideal fit, the company also works with those in oilfield services, textiles, staffing, distribution, and manufacturing.
By working with RTS Financial, you’ll also gain access to additional benefits that can save your business money. The company offers a fuel card program that can provide gas savings at over 2,400 locations across the nation. You’ll also get a weekly line of credit of up to $2,500 per truck that can be used for various vehicle expenses. Veterans may also qualify for additional discounts.
Other perks you’ll gain by using RTS Financial include the use of its account management software, which allows you to check the credit rating of companies to help you assess the risk level. You can also manage your 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.
Triumph Business Capital: Best for Nonrecourse Transportation Factoring
| |
Rates & Terms | |
Estimate of Fees | 1% to 4% per 30 days |
Estimated APR | 20% to 80% |
Loan Amount | Varies (no stated maximum) |
Repayment Term | Up to 90 days |
Advance Rate | Up to 100% |
Time to Funding | As fast as 24 hours from application |
Factoring Contract Required? | Not stated |
Qualifications | |
Annual Revenue | None, but $100,000 is recommended |
Time in Business | None |
Why We Like Triumph Business Capital
If your trucking business is looking specifically for nonrecourse factoring, Triumph Business Capital is an excellent option. It made our list of the best nonrecourse factoring companies thanks to its competitive rates, high advance rates, and fast funding speeds.
With nonrecourse funding, your company is not responsible for payment if your customer fails to pay the factoring company the amounts owed. This is different from recourse factoring, where your business would be liable for paying the factoring company in the event your customer defaults on its invoice. However, while nonrecourse factoring may be less risky for your business, it typically comes at a higher cost.
Triumph Business Capital also offers a fuel card discount program similar to RTS Financial. You can use the company’s online portal to run credit checks on new clients and select invoices to fund. Additional services include insurance and equipment financing.
If you’re interested in applying or learning more, visit the Triumph Business Capital website. There, you can complete an online form requesting a callback.
How We Chose the Best Factoring Companies
We took the following factors into consideration when selecting the best factoring companies:
- Rates and fees charged
- Contract requirement and minimum factoring period
- Qualification requirements
- Application, approval, and funding speeds
- Estimated APRs
- Advance rates
- Customer reviews and ratings
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 provider to consider, 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, then see our guides to the best working capital loans and the leading SBA lenders.
- Rollover for business startups (ROBS): If you don’t need funds quickly, you can consider a ROBS. This gives you tax- and penalty-free access to your retirement accounts. A ROBS isn’t a loan, so you won’t pay any interest charges. Check out 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 nonrecourse factoring. Nonrecourse 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 a few days. Factoring can be more expensive than other financing options though, so you should consider other types of loans if you’re not in a hurry to get funding.
