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 companies 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
- Clarify Capital: Best for multiple financing options
- Riviera Finance: Best for startups and smaller funding amounts
- Universal Funding Corporation: Best for long-term factoring
- Scale Funding: Best for flexible financing
- RTS Financial: Best for trucking companies
- altLINE: Best for large recurring factoring needs
- Triumph Business Capital: Best for non-recourse transportation factoring
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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 | 1-5 days | None |
| Varies | 0.5% per month and up | 100% | $120,000 | As fast as 24 hours | Varies |
 | $2 million | 2% | 95% | None | 4-7 days | 6 months |
 | $20 million | 0.55% | 95% | $300,000 | 48 hours | 12 months |
 | Not stated | 2% | 90% | $600,000 recommended | 1-4 days | None |
 | Varies | 1.5% | 97% | None | 24-48 hours | Not stated |
 | $4 million | 0.5% | 90% | $180,000 recommended | 48 hours | 12 months |
 | Varies | 1% | 100% | $100,000 recommended | 24 hours | Not stated |
FundThrough: Best Overall for Terms and Financing Costs
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Rates and Terms | |
Estimate of Fees |
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Estimated Annual Percentage Rate (APR) | 33% to 70% |
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 |
Why We Like FundThrough
We chose FundThrough as the best overall invoice factoring company because it offers competitive rates, flexible terms, and a streamlined process that allows for funds to be issued quickly.
It works best when linked with the accounting software you use. QuickBooks and OpenInvoice are two supported platforms. Once linked, you can select the invoices you’d like to have funded.
FundThrough then uses an AI-powered process to determine the maximum amount you can get funded. If eligible, you’ll receive payment as quickly as the next business day.
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.
Clarify Capital: Best for Multiple Financing Options
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Rates and Terms | |
Estimate of Fees | 0.5% per month |
Estimated Annual Percentage Rate (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 |
Why We 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
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Rates and Terms | |
Estimate of Fees | 2% and up per 30 days |
Estimated Annual Percentage Rate (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 |
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 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.
Universal Funding Corporation: Best for Long-term Factoring
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Rates and Terms | |
Estimate of Fees | 0.55% to 2% per 30 days |
Estimated Annual Percentage Rate (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? | 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 better 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.
Scale Funding: Best for Flexible Financing
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Rates and Terms | |
Estimate of Fees | Varies but typically 2% per 30 days |
Estimated Annual Percentage Rate (APR) | 24% and up |
Loan Amount | Not stated |
Repayment Term | Varies |
Advance Rate | 90% |
Time to Funding | 1 to 4 days after application |
Factoring Contract Required? | None |
Qualifications | |
Annual Revenue | $600,000 recommended |
Time in Business | None |
Why We 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.
RTS Financial: Best for Trucking Companies
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Rates and Terms | |
Estimate of Fees | 1.5% to 5% per 30 days (discounts available for US Veterans) |
Estimated Annual Percentage Rate (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
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
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Rates and Terms | |
Estimate of Fees | 0.5% to 3.5% per 30 days |
Estimated Annual Percentage Rate (APR) | 20% and up |
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 |
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. 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.
Triumph Business Capital: Best for Non-recourse Transportation Factoring
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Rates and Terms | |
Estimate of Fees | 1% to 4% per 30 days |
Estimated Annual Percentage Rate (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 | Varies, but $100,000 is recommended |
Time in Business | None |
Why We Like Triumph Business Capital
If your trucking business is looking specifically for non-recourse factoring, Triumph Business Capital is an excellent option. It made our list of the best non-recourse factoring companies thanks to its competitive rates, high advance rates, and fast funding speeds.
With non-recourse 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 non-recourse 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 considered the following 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 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.
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.
