6 Best Invoice Factoring Companies 2020

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 25 invoice factoring companies based on 18 factors to select the six best invoice factoring providers. Each company selected earns stellar reviews from small business owners.

Best Factoring Companies

*Last Updated: January 2020

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 six 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

FundThrough: Overall Best Invoice Factoring Company

Velocity powered by FundThrough is an innovative, self-service, invoice factoring solution. Small business owners can complete the process online and receive up to 100% of the invoice value. There is a flat fee that starts at 2.5%, and no need to go through a lengthy approval process or multiple calls. Applicants can receive an unlimited amount of funding the next business day after applying, with no minimum requirements.

FundThrough Invoice Factoring Rates & Fees

• Discount rate: Starting at 2.5%
• Expected annual percentage rate (APR): 7.5% to 50%
• Origination fee: None
• Additional fees: None

FundThrough offers a unique pricing package that is a single fee. Business owners know at the time that they factor how much it will cost them. FundThrough also doesn’t charge additional fees and only holds back the amount of the fee. This level of transparency means that business owners access the full invoice value and can plan their finances with certainty.

FundThrough Invoice Factoring Terms

• Funding amount: Unlimited
• Advance rate: Up to 100%
• Repayment term & schedule: Advances are repaid as customers pay their invoices
• Personal guarantee: No personal guarantee
• Speed to funding: As quick as one day

FundThrough is the only factoring company we evaluated that offers small business owners an unlimited amount of funding. It also offers business owners 100% of the invoice value upfront, granting small businesses access to all of their capital. FundThrough also provides next-day funding, and unlike many factoring companies with an automated process does not require a personal guarantee.

FundThrough Factoring Minimum Qualifications

• Credit score: No minimum
• Time in business: No minimum
• Annual revenue: No minimum

The minimum qualifications are another standout feature of FundThrough because there are no minimum requirements. The only exception to this is that businesses with less than six months of operations may require a further review by FundThrough and delay the approval process by a few hours.

FundThrough Invoice Factoring Features

• Customer interaction: Only initial introduction
• Assignment of invoices: Required
• Type of invoice financing agreement: Recourse

Businesses assign invoices to FundThrough and will connect directly with the debtor to make sure that the invoice is valid and still outstanding. Business owners can edit and revise the email, which grants them control over the communications process. While FundThrough offers recourse factoring, its official stance is that it will take the time to work with the borrower to come up with a solution.

What FundThrough Is Missing

FundThrough offers an all-around stellar invoice factoring facility. However, business owners that expect payment within a few days may pay more for financing with FundThrough but, for most terms, FundThrough will be the most affordable solution.

FundThrough Reviews

FundThrough reviews on the web are very positive. Most business owners that left a review for FundThrough were thrilled with the quick funding speeds and the simplicity of the process. At the time we wrote this article, we did not find any substantial negative reviews of FundThrough.

How to Apply With FundThrough

FundThrough has refined the application process to simplify for small business owners. Applicants must provide some form of verification to identify their business and themselves. After that, applicants can upload an invoice, approve an email to the debtor, and receive funding the next business day with Velocity powered by FundThrough.

Visit FundThrough

BlueVine: Best for Quick Funding

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.

BlueVine Invoice Factoring Rates & Fees

• Discount rate: 0.25% to 1.35% per week
• Expected APR: 13% to 70%
• Origination or maintenance fees: None
• Prepayment penalties or termination fees: None
• Additional fees: $15 wire fee; automated clearing house (ACH) is free

BlueVine’s weekly discount rate begins at 0.25% of the factored invoice value, which is the amount the company charges as its fee. A 0.25% discount rate on $10,000 of invoices equals $25. This equates to discount rates starting at 1% per month, which compares favorably to Paragon Financial Group’s 1.25% starting rate.

BlueVine Invoice Factoring Terms

• Funding amount: $5,000 to $5 million per month
• Advance rate: 85% to 90% on invoices with face values of $500 or more to business-to-business (B2B) customers
• Repayment term & schedule: Advances are repaid as customers pay their invoices
• Personal guarantee: Required
• Speed to funding: 10 minutes to apply with a decision and funding as soon as the next day; ongoing funding the next day is free via an ACH; same day is $15 via a wire

BlueVine offers an advance rate of 85% to 90%, which is set based on its evaluation of the company and customers. Applicants can receive advances on $5,000 to $5 million in invoices monthly. BlueVine’s minimum factoring amount is lower than most invoice financing companies making it a great option for business owners wanting a lower-cost alternative.

BlueVine Factoring Minimum Qualifications

• Personal credit score: At least 530
• Time in business: At least three months
• Annual revenue: At least $100,000

While the other providers on our list of the best invoice factoring companies are relying on the creditworthiness of an applicant’s customer, BlueVine is looking for its borrowers to meet minimum credit qualifications. In addition, it wants customers to be creditworthy. Unlike most of the other invoice factoring companies on this list, it doesn’t have any specific industry specializations.

BlueVine Invoice Factoring Additional Features

• Customer interaction: None
• Type of invoice financing agreement: Recourse

BlueVine offers invoice factoring on a recourse basis. While it still requires a business’s customers to pay invoices directly to a bank account it establishes, BlueVine will not communicate with customers directly. This differs from most of the other invoice factoring companies we reviewed.

What BlueVine Is Missing

One drawback to BlueVine is that to qualify, business owners need a personal credit score of at least 530. This is not a requirement for most of the other best invoice factoring companies. However, BlueVine offers funding amounts as low as $5,000. This limit is lower than most of the best invoice factoring companies.

BlueVine Reviews

We compiled BlueVine reviews from around the web and determined it has mostly positive ratings. Positive BlueVine reviews focused on BlueVine’s responsive customer support team and transparent pricing. Critical BlueVine reviews were from users unhappy at being denied funding or about BlueVine’s fees.

How to Apply With BlueVine

The BlueVine application process is simple and entirely online. Business owners can connect BlueVine to invoicing or accounting software and select the invoices that are a priority to finance.

Visit BlueVine

Paragon Financial Group: Best for Nonrecourse Factoring

Paragon Financial Group 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.

Paragon Financial Group Invoice Factoring Rates & Fees

• Discount rate: 1.25% to 2.5% per 30 days
• Expected APR: 16% to 55% or more depending on individual fees
• Origination fee: Small, one-time fee
• Additional fees: None

Paragon declined to provide an APR range. However, we estimated its APR to be between 16% and 55%. Paragon Financial Group’s discount rate includes credit protection and accounts receivable management. This service isn’t provided by some factoring companies like BlueVine. So, while business owners pay a little more—starting rates of 1.25% at Paragon compared to 1% with BlueVine—some businesses might find this value-added service beneficial.

Paragon Financial Group Invoice Factoring Terms

• Funding amount: $30,000 to $10 million per month
• Advance rate: 80% to 90%
• Repayment term & schedule: Repaid as invoices are paid
• Personal guarantee: Most likely required
• Speed to funding: Three to 10 business days

The minimum monthly factoring limit with Paragon Financial Group is $30,000. Paragon Financial Group has reciprocal relationships with other invoice funding companies, and so it will help applicants find a relationship with another provider if the amount factored changes.

Paragon Financial Group Factoring Minimum Qualifications

• Credit score: Not a factor; credit problems OK, such as slow-paying customers, IRS issues, payroll problems, and legal troubles
• Time in business: Not a factor
• Annual revenue: At least $30,000 in invoices per month

When qualifying a business for invoice factoring, Paragon Financial Group relies more on the creditworthiness of debtors than the business. It’s OK if applicants have serious credit problems, such as issues with the IRS and payroll troubles. Each customer must be individually approved by Paragon, which will run a Dun & Bradstreet credit check on them.

Paragon Financial Group Invoice Factoring Additional Features

• Customer interaction: Required
• Assignment of invoices: Required
• Type of invoice financing agreement: Recourse and nonrecourse available

Paragon Financial Group offers contract and spot factoring on a nonrecourse basis. With spot factoring, business owners can pick the invoices to factor. The spot factoring option is an advantage because business owners have the flexibility to choose which invoices to factor, so long as they meet the $30,000 monthly minimum. Since the company is purchasing the invoices, it will interact directly with customers.

What Paragon Financial Group Is Missing

Paragon Financial Group only offers nonrecourse factoring. While nonrecourse invoice factoring companies are known for being more expensive, Paragon Financial Group’s pricing remains competitive. If an invoice was outstanding for 30 days with BlueVine, the rate would start at 1% compared to a starting rate of 1.25% with Paragon.

Paragon Financial Group Reviews

We compiled user reviews from around the web and determined that Paragon Financial Group reviews are positive. Customers who recommend Paragon Financial Group were impressed with the responsive customer support team. There were no negative reviews found at the time this article was written.

How to Apply With Paragon Financial Group

Applications for factoring are submitted to Paragon Financial Group electronically. Business owners must provide the most recent accounts receivable (A/R) aging report, accounts payable (A/P) aging report, a customer list, and a sample invoice. A representative from Paragon will then contact approved applicants to develop a custom factoring solution. The entire process typically takes three to 10 business days.

Visit Paragon Financial Group

TCI Business Capital: Best for Monthly Contracts

TCI Business Capital is among the best invoice factoring companies because it offers a month-to-month contract and 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 rate of 1% to 4% could decrease. This is great compared to altLINE, which locks in a yearly rate.

TCI Business Capital Invoice Factoring Rates & Fees

• Discount rate: 1% to 4% per invoice monthly
• Expected APR: 12% to 55% or more depending on individual fees
• Origination fee: None
• Additional fees: $12.95 ACH fee; $19.99 wire fee

TCI charges an additional fee when businesses receive payments and advances via ACH or bank wires. It should specify these fees in the factoring agreement. It’s also possible that TCI may charge customers that don’t meet its $50,000 factoring minimum additional fees. We always recommend studying the factoring agreement to make sure all the charges are clear and easy to understand.

TCI Business Capital Invoice Factoring Terms

• Funding amount: $50,000 to $20 million per month
• Advance rate: About 90% on B2B or business-to-government (B2G) customers due in 30 to 90 days
• Repayment term & schedule: Paid automatically as customers pay their invoices
• Personal guarantee: Possible, depending on the strength and age of the business
• Speed to funding: Three to four days

The minimum monthly factoring limit with TCI Business Capital is $50,000. Businesses that can’t meet this monthly minimum should consider invoice factoring companies with no minimums, such as FundThrough.

TCI Business Capital Factoring Minimum Qualifications

• Credit score: Not a factor
• Time in business: Not a factor
• Annual revenue: At least $50,000 in invoices per month

As with several of the other providers on our best invoice factoring companies list, TCI Business Capital will consider the industry when evaluating an application. While TCI works with some different industries, several of its top industries include trucking and freight, oil and gas, and telecommunications.

TCI Business Capital Invoice Factoring Additional Features

• Customer interaction: Required
• Assignment of invoices: Required
• Type of invoice financing agreement: Recourse

TCI Business Capital offers recourse factoring. TCI also lets business owners pick which customer invoices to factor every month, with a mix of spot and contract factoring. For those invoices, TCI Business Capital requires an assignment of invoices.

What TCI Business Capital Is Missing

The main downside we found with TCI Business Capital is that it has a higher minimum monthly factor amount that businesses must hit than the other invoice factoring companies we reviewed. This puts TCI out of reach for those with less than $50,000 per month in invoices. A month-to-month contract can also be bad for some customers, particularly those needing the security of a long-term contract.

TCI Business Capital Reviews

We compiled user reviews from our website and around the web and determined that TCI Business Capital reviews are positive. Customers who gave TCI Business Capital positive feedback said that the company’s customer service team is professional and reliable. Customers who gave TCI Business Capital critical feedback said that trying to adjust the original terms can be difficult.

How to Apply With TCI Business Capital

To apply with TCI Business Capital, business owners fill out an application online or by phone. Applicants will most likely need to provide tax returns, an A/R aging report, and an A/P aging report. The approval process takes three to four days before initial funding.

Visit TCI Business Capital

altLINE: Best Invoice Factoring Company for Net Terms Under 30 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.

altLINE Invoice Factoring Rates

• Discount rate: 0.75% to 3.0% per invoice for up to 30 days, with discount rate increases every 15 days after that
• Expected APR: 9% to 55% or more depending on individual fees
• Origination fee: $350 one-time fee
• Additional fees: $30 wire fee; no monthly minimum fees

altLINE uses a tiered discount rate system. The quicker the invoices are paid, combined with the larger the amount factored on a monthly basis, the lower the fee is. The best rates are reserved for those factoring $300,000 or more per month, with clients paying in 15 to 30 days or less.

altLINE Invoice Factoring Terms

• Funding amount: $30,000 to $5 million per month
• Advance rate: About 90%
• Repayment term & schedule: Paid automatically as customers pay their invoices
• Personal guarantee: Required
• Speed to funding: Two to seven days for initial approval

Businesses that don’t meet altLINE’s $30,000 factoring minimum can still apply. Unlike other providers we reviewed, business owners can qualify for altLINE invoice factoring as a startup and with low revenue. This is because altLINE also evaluates the company’s potential for growth. If a company is growing quickly and needs invoice factoring, altLINE is a great solution.

altLINE Factoring Minimum Qualifications

• Credit score: Not a factor
• Time in business: Not a factor
• Annual revenue: At least $30,000 in invoices per month

As with many other factoring companies, altLINE will consider the industry applicants are in. While altLINE works with some different industries, several of its top industries include staffing and payroll companies, manufacturing and wholesaling, and distribution.

altLINE Invoice Factoring Additional Features

• Customer interaction: Required
• Assignment of invoices: Required
• Type of invoice financing agreement: Recourse

While altLINE requires an assignment of all invoices, its flexibility in communicating with customers is one of its bright spots. Business owners can communicate with customers and let them know where to send their future payments. It won’t contact customers at all unless they are past due, and business owners will be kept in the loop on all customer communications.

What altLINE Is Missing

altLINE requires its clients to factor at least $30,000 per month or be growing quickly toward this minimum. If a business isn’t large enough to meet this requirement, then it should consider an alternative, such as FundThrough, which doesn’t have a minimum threshold.

How to Apply With altLINE

To get approved for invoice factoring with altLINE applicants begin by speaking with a representative of the company about their needs. Business owners can get the process started by submitting a request for a free quote on altLINE’s website. Business owners most likely need to provide tax returns and A/R and A/P aging reports. The entire application and approval process typically takes two to seven days.

Visit altLINE

Triumph Business Capital: Good Invoice Factoring Option for Freight Factoring

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%.

Triumph Business Capital Invoice Factoring Rates

• Discount rate: 1% to 4% per month
• Expected APR: 13% to 55% or more depending on individual fees
• Origination fee: A small one-time fee is possible
• Additional fees: None

All fees are specified in the factoring agreement, and Triumph Business Capital declined to provide specific fees and APR ranges. Business owners may be charged fees specific to their agreement. However, fees and rates are determined on a case-by-case basis. This is similar to most other providers and why we always recommend studying the factoring agreement.

Triumph Business Capital Invoice Factoring Terms

• Funding amount: Up to $20 million, with no stated minimum
• Advance rate: About 90%
• Repayment term & schedule: Repaid as invoices are paid
• Personal guarantee: Possible
• Speed to funding: Five to seven business days

There is no stated minimum monthly factoring with Triumph Business Capital. This is especially valuable for smaller trucking companies that have one to five trucks and only $10,000 in monthly invoices to factor. Although this is the only provider that offers no minimums, business owners will typically still need to have at least $10,000 in invoices to factor for Triumph Business Capital to justify the cost.

Triumph Business Capital Factoring Minimum Qualifications

• Personal credit score: Typically at least 500, with some exceptions
• Time in business: One year or more
• Annual revenue: At least $100,000

To qualify, business owners must work with B2B or B2G customers. Additionally, invoices must be due and payable within 90 days and not pledged to another lender. Unlike most of the best factoring companies, Triumph Business Capital requires a minimum credit score. However, exceptions are made for businesses with well-qualified debtors. Typically, if Triumph Business Capital works with them already and has experience of on-time collections.

Triumph Business Capital Invoice Factoring Additional Features

• Customer interaction: Required
• Assignment of invoices: Required
• Type of invoice financing agreement: Recourse is standard; nonrecourse possible with a higher discount rate and lower advance rate

The standard invoice financing product offered by Triumph Business Capital is recourse. This means borrowers are responsible if customers don’t pay. The length of time Triumph Business Capital will hold an unpaid invoice before requiring a business to pay will be established in the factoring agreement.

What Triumph Business Capital Is Missing

Although Triumph Business Capital offers factoring solutions to many industries, it may not have the same experience as other lenders outside of freight factoring. Although this typically isn’t an issue, working with a factoring company that has experience in the industry can mean a faster approval time.

Triumph Business Capital Reviews

We compiled user reviews from around the web and determined that user reviews of Triumph Business Capital are generally positive. Positive Triumph Business Capital reviews noted its level of service, quick funding, and professionalism. Some users left negative reviews of Triumph Business Capital because they could not get approved for funding. To read more reviews like these, visit our Triumph Business Capital reviews page.

How to Apply With Triumph Business Capital

Business owners can apply for Triumph Business Capital invoice factoring online. It takes five to seven days to get approval and funding. After Triumph Business Capital approves the application, all future invoices will take 24 hours.

Visit Triumph Business Capital

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.