6 Best Invoice Factoring Companies 2019

With invoice factoring, your unpaid invoices are converted into immediate cash through an advance of 80% to 90% of the total amount owed. We reviewed invoice factoring companies to find the six best factoring companies. These companies are experienced at collecting payments for small businesses with the best advance and discount rates in the industry.

BlueVine offers fast factoring up to $5 million and a line of credit up to $250,000. See what you prequalify for without impacting your credit.

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6 Best Invoice Factoring Companies 2019

Which Invoice Factoring Company Is Best For You?

How We Evaluated the Best 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 you can receive and how quickly you can access the needed funds.

The criteria we used to evaluate the best factoring companies include:

• Funding amount: The minimum and maximum monthly factoring limits for each of the invoice factoring companies
• Advance rate: What percentage rate the invoice factoring companies will advance against your invoices
• Discount rate: What discount rate — similar to an interest rate — the invoice factoring companies will charge you to provide funding against your invoices
• Fees: How much in fees you can expect the invoice factoring companies to charge
• Qualifications: What factors the invoice factoring services consider when evaluating your business as a potential borrower
• Ease of application: How easy it is to apply for factoring with the invoice factoring company
• Speed of funding: How quickly the small business factoring company will provide you with access to the funds you need
• Customer reviews: What other business owners are saying about business factoring companies

After considering these criteria, we chose Paragon Financial Group as the best small business invoice factoring company. This is because you can select the invoices you want to advance against from $30,000 to $10 million monthly. Because of this wide limit range and its ability to help companies in many situations, even tax problems, Paragon Financial Group is good for most small businesses.

Paragon Financial Group: Best Overall Invoice Factoring Company for Small Businesses

Paragon Financial Group is great for small businesses as it can help in almost any situation, 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. If you need to factor less than $30,000 monthly, BlueVine is a better option.

Paragon Financial Group Invoice Factoring Rates & Fees

With Paragon Financial Group’s Invoice Factoring Calculator, you can estimate the cost of factoring given different variables. Its rates range from 1.25% to 2.5% per 30 days. Assuming you’re charged the lowest rate on a 90-day invoice, you would pay 3.75%. This results in a 16% starting annual percentage rate (APR), with a daily cost of capital of $4 for every $10,000 you factor.

The typical invoice factoring rates, costs, and fees you can expect from Paragon Financial Group are:

• 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 when you accept its factoring offer
• Additional fees: No additional fees are typically charged; all fees will be disclosed in your factoring agreement

Paragon declined to provide an APR range. However, we estimated its APR to be between 16% to 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 you’ll 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

Paragon Financial Group offers advance rates ranging between 80% and 90%. Only TCI Business Capital offers a larger maximum advance rate of 95%. Paragon Financial Group’s monthly funding limit of $30,000 to $10 million represents some of the largest maximum limits — TCI Business Capital is higher at $20 million — and lowest minimum limits — BlueVine is lower at $5,000.

The typical invoice factoring terms offered by Paragon Financial Group include:

• Funding amount: $30,000 to $10 million per month
• Advance rate: 80% to 90%
• Repayment term & schedule: Repaid as your invoices are paid
• Personal guarantee: Most likely required
• Speed to funding: Generally three to 10 business days for initial funding and less than 24 hours once your account has been established

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 you find a relationship with another provider if the amount you’re invoicing suddenly changes. If you don’t invoice at least $30,000 per month, BlueVine is one of the best invoice factoring companies with a $5,000 limit.

Paragon Financial Group Factoring Minimum Qualifications

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

To evaluate if your business qualifies for invoice factoring services, Paragon Financial Group considers:

• 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: You must factor at least $30,000 in invoices per month, which means your annual revenue likely needs to be at least $360,000 to qualify

Paragon Financial Group’s monthly factoring minimum of $30,000 is lower than some other top factoring companies as only BlueVine and Payability have a lower monthly minimum. Making sure you can meet the provider minimum is an important qualification step. Paragon has reciprocal arrangements with other business factoring companies, so if it can’t help you, it can refer you to someone who can.

Lastly, Paragon Financial Group will consider your industry. It works with many industries, including manufacturing, wholesaling and distribution. Choosing a provider who is familiar with and specializes in your industry can make the process easier. Plus, your customers may already be familiar with Paragon Financial Group if it’s used by other businesses in your industry.

Paragon Financial Group Invoice Factoring Additional Features

Some additional features of invoice factoring with Paragon Financial Group are:

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

Paragon Financial Group offers contract and spot factoring on a nonrecourse basis. With spot factoring, you can pick and choose the invoices to factor. Since the factoring is nonrecourse, you aren’t responsible for paying back invoices or the personal guarantee if your customer becomes insolvent or files for bankruptcy.

The spot factoring option is an advantage as you have the flexibility to choose which invoices to factor, so long as you meet the $30,000 monthly minimum. Since your invoices are being purchased by the company, you can expect it to interact with your customers. Paragon Financial Group’s commitment is to treat your customers well and not act like a collection agency, similar to other top factoring companies.

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 your invoices were outstanding for 30 days with BlueVine, your rate would start at 1% compared to a starting rate of 1.25% with Paragon. The cost differential is attributed to the additional services you’re receiving from Paragon Financial Group.

Paragon Financial Group Reviews

We compiled user reviews from around the web and determined that Paragon Financial Group generally has positive ratings. 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. Read more on our Paragon Financial Group reviews page.

How to Apply With Paragon Financial Group

Applications for factoring are submitted to Paragon Financial Group electronically. With your application, you’ll also provide your most recent accounts receivable (A/R) aging report, accounts payable aging report, a customer list, and a sample invoice. A representative from Paragon will work with you to develop a custom factoring solution. The entire process typically takes three to 10 business days.

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BlueVine: Best Invoice Factoring Company for Quick Funding

Small businesses needing to quickly start factoring invoices from $5,000 to $5 million per month at starting 0.25% weekly discount rates will benefit from BlueVine. This is because BlueVine is quick to approve and fund — 10 minutes to approve, 24 hours to fund — businesses for factoring. Plus, it won’t directly interact with your customers, unlike many invoice factoring companies on our list, such as Paragon Financial Group.

BlueVine Invoice Factoring Rates & Fees

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.

The typical invoice factoring rates, costs, and fees you can expect from BlueVine are:

• 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 APR range of 13% to 70% was provided to us by the company, the only provider on our list that shared this information. When you factor $10,000 with BlueVine, you can expect to have a daily cost of capital that starts at about $4. This means that your expected APR will be at least 13%, which is among the lowest starting APRs on our list of the best invoice factoring companies for small businesses.

BlueVine Invoice Factoring Terms

BlueVine offers an advance rate of 85% to 90%, which is set based on its evaluation of your company and customers. You can receive advances on $5,000 to $5 million in invoices monthly. BlueVine’s minimum factoring amount is lower than all the invoice financing companies other than Payability, making it an excellent option for small businesses.

The typical receivables financing terms offered by BlueVine include:

• 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 or same day is $15 via a wire

The BlueVine approval process begins with a 10-minute online application, with a decision in as little as 24 hours. This is much quicker than most of the others on our list. As with the other invoice factoring companies, once approved you can expect to receive advances within 24 hours. You’ll have the option of receiving your funds via ACH transfers on the next day or bank wires on the same day for a small fee.

BlueVine Factoring Minimum Qualifications

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

To evaluate if your business qualifies for invoice factoring services, BlueVine considers:

• Personal credit score: At least 530 (check your score for free)
• Time in business: At least three months
• Annual revenue: At least $100,000

The process of qualifying with BlueVine begins with its 10-minute online application. If you connect BlueVine to your QuickBooks, Xero or FreshBooks accounts, that’s all the additional information it typically needs to get you qualified and approved. Compared to other top invoice factoring companies it has the quickest application process.

BlueVine Invoice Factoring Additional Features

Some additional features of invoice factoring with BlueVine are:

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

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

Similar to some other providers, the contract type is spot factoring, meaning you pick and choose the invoices to factor. Since BlueVine is providing you with recourse factoring, you’re responsible for any invoices your customers don’t pay. BlueVine gives you the option of self-paying the invoice, or it will enroll you in an installment repayment plan.

What BlueVine Is Missing

One drawback to BlueVine is that to qualify, you 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 can approve you for funding amounts as low as $5,000. This limit is lower than most of the best invoice factoring companies. Plus, BlueVine allows you to maintain control of your A/R process, which is a plus.

BlueVine Reviews

We compiled user reviews from around the web. In so doing, we determined BlueVine 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. Read more on our BlueVine reviews page.

How to Apply With BlueVine

With BlueVine, you can get started on invoice factoring from $5,000 to $5 million by completing an online application. Preparing the application takes about 10 minutes. Potentially, you can get approved and funded in as soon as 24 hours.

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TCI Business Capital: Great Invoice Factoring Option With Month-to-Month Contracts

TCI Business Capital is best because it offers a month-to-month contract and re-evaluates your discount rate automatically every month to see if it can be reduced. If your factoring volume goes up or your customers pay their invoices quicker, your rate of 1% to 4% could decrease. This is great compared to altLINE, which locks in a yearly rate unless you request a re-evaluation.

TCI Business Capital Invoice Factoring Rates & Fees

The discount rate from TCI Business Capital is re-evaluated monthly based on your previous 30 days. The two most important factors for determining your rate are, how long invoices remain unpaid by customers and the amount you factor monthly. With TCI Capital you can expect an APR of 12% to 55% based on our calculations, and a daily cost of capital of $3 to $13 for every $10,000 factored.

The typical invoice factoring rates, costs, and fees you can expect from TCI Business Capital are:

• 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 you receive payments and advances via ACH or bank wires. These fees should be specified in your factoring agreement. It’s also possible that you could be charged a fee if you don’t meet TCI’s $50,000 factoring minimum. We always recommend reading your factoring agreement closely to make sure you understand all the possible charges, regardless of which invoice factoring companies you work with.

TCI Business Capital Invoice Factoring Terms

The typical invoice factoring terms offered by TCI Business Capital include:

• 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 your customers pay their invoices
• Personal guarantee: Possible, depending on the strength and age of your business
• Speed to funding: Three to four days for approval and initial funding; ongoing funding within 24 hours of request

The minimum monthly factoring limit with TCI Business Capital is $50,000. If you can’t meet this monthly minimum, then you should consider invoice factoring companies with lower minimums, such as BlueVine. With BlueVine, you can factor as little as $5,000 per month.

TCI Business Capital Factoring Minimum Qualifications

To evaluate if your business qualifies for invoice factoring services, TCI Business Capital considers:

• Credit score: Not a factor
• Time in business: Not a factor
• Annual revenue: You must factor at least $50,000 in invoices per month; this means your annual revenue likely needs to be at least $600,000 to qualify

The key to qualifying is the creditworthiness of your customers and not your financial condition. TCI might check your customers’ credit history but may not have to if your records show they pay on time or if TCI is familiar with your customer through other dealings. Lastly, your customers need to be B2B or B2G businesses with invoices due in 30 to 90 days.

As with several of the other providers on our best invoice factoring companies list, TCI Business Capital will consider your industry when qualifying you for factoring. While TCI works with some different industries, several of its top industries include trucking and freight, oil and gas, and telecommunications. When selecting invoice factoring companies, consider choosing one that specializes in your industry to make the process easier.

TCI Business Capital Invoice Factoring Additional Features

Some additional features of invoice factoring with TCI Business Capital are:

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

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

Once you choose a customer, then you must factor all of their invoices for that month. You can avoid factoring invoices for specific customers that may not like a third-party collecting their payments. Similarly, altLINE allows you to pick and choose, but all of your customer invoices must be paid directly to it regardless of whether the invoices are factored.

TCI also takes over direct communications with your customers in regard to payment of factored invoices. TCI claims it won’t contact your customers unless it needs to but reserves the right to communicate with them about paying off their invoices as needed. Each customer must sign a notice of assignment to acknowledge they’ll pay TCI going forward.

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 you 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 if you want the security of knowing you have 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 generally has positive ratings. 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. Read more on our TCI Business Capital reviews page.

How to Apply With TCI Business Capital

To apply with TCI Business Capital, you’ll fill out an application online or by phone. You’ll most likely need to provide tax returns, an A/R aging report, and an accounts payable (A/P) aging report. The approval process takes three to four days before you’re initially funded, and then you can fund any invoice within 24 hours.

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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 your invoices are paid in less than 30 days — usually 15 — you 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

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

The typical invoice factoring rates, costs, and fees you can expect from altLINE are:

• Discount rate: 0.75% to 3.0% per invoice for up to 30 days, with discount rate increases every 15 days thereafter
• 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 shared an APR range of 9% to 36%, determined by annualizing the first month’s rate. But, if your invoices are repaid in more than 30 days, your APR may be higher, due to rate increases. This is why we estimated the highest APR to be in line with competitors at 55%. This means that a $10,000 invoice, will have a daily cost between $3 and $13.

altLINE Invoice Factoring Terms

The typical invoice factoring terms offered by altLINE include:

• Funding amount: $30,000 to $5 million per month
• Advance rate: About 90%
• Repayment term & schedule: Paid automatically as your customers pay their invoices
• Personal guarantee: Required
• Speed to funding: Two to seven days for initial approval; ongoing funding within 24 hours of you requesting an advance

If you don’t meet altLINE’s $30,000 factoring minimum, that doesn’t mean you shouldn’t apply. Unlike other providers, we reviewed you can qualify for altLINE invoice factoring even if you are a startup or are not yet generating enough revenue. This is because altLINE also evaluates your company’s potential for growth. If your company is growing quickly and you need invoice factoring, altLINE is a great solution.

altLINE Factoring Minimum Qualifications

To evaluate if your business qualifies for invoice factoring services, altLINE considers:

• Credit score: Not a factor
• Time in business: Not a factor
• Annual revenue: You are expected to factor at least $30,000 in invoices per month, within the first year of starting, which means your annual revenue likely needs to be at least $360,000 to qualify

The key to you qualifying is the creditworthiness of your customers, as with many of the other providers. To qualify for factoring with altLINE, you need to have creditworthy B2B or B2G customers with invoices due within 90 days. altLINE may pull your customers’ credit unless altLINE already knows them from another relationship or based on your experience with them.

As with many of the other factoring companies, altLINE will consider your industry. While altLINE works with some different industries, several of its top industries include staffing (payroll) companies, manufacturing and wholesaling, and distribution. Choosing a provider that specializes in your industry can make the process easier.

altLINE Invoice Factoring Additional Features

Some additional features of invoice factoring with altLINE are:

• Customer interaction: Required, but you can also contact your customers
• Assignment of invoices: Required
• Type of invoice financing agreement: Recourse

Nontraditional contract factoring is used by altLINE. While its preference is for you to factor all of your invoices with altLINE, it isn’t a requirement. You can pick and choose which invoices you factor. However, all of your customer’s invoice payments, whether you factor them or not, must be made to altLINE’s lockbox or payment account. You will be directly reimbursed within one to three days for any payments made on nonfactored invoices.

While altLINE requires an assignment of all invoices, its flexibility in communicating with your customers is one of its bright spots. You are allowed to communicate with your customers and let them know where to send their future payments. It won’t contact your customers at all unless they are past due, and you 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 your business isn’t large enough to meet this requirement, then you should consider an alternative, such as BlueVine, which offers a lower minimum threshold.

altLINE Reviews

We searched for reviews around the web about altLINE’s invoice factoring product. As of when this article was written, there aren’t any reviews available. If you have experience with altLINE you would like to share, we would love to hear from you, as would your fellow readers, so feel free to check out our altLINE reviews page.

How to Apply With altLINE

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

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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. However, your customers’ creditworthiness is important. 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

Triumph Business Capital’s discount rates assume you’re using recourse factoring. However, some companies will find nonrecourse factoring beneficial as the provider takes most of the credit risk. Triumph Business Capital may provide you with nonrecourse factoring on a case-by-case basis, but you can expect higher rates. With recourse factoring, you can expect an APR of 13% to 55% with a daily cost of $3 to $13 for every $10,000 you factor.

The typical invoice factoring rates, costs, and fees you can expect from Triumph Business Capital are:

• 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: Review your accounts receivable financing agreement to make sure you understand any potential fees

All fees are specified in your factoring agreement, and Triumph Business Capital declined to provide specific fees and APR ranges. You could be charged fees specific to your 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 reading your factoring agreement closely to make sure you understand all the possible charges.

Triumph Business Capital Invoice Factoring Terms

You’ll get the best terms if you enter into a recourse factoring arrangement with Triumph Business Capital, meaning you’re responsible for invoices your customers don’t pay. If nonrecourse factoring makes sense for your circumstances, Triumph Business Capital can also help you. The trade-off is you’ll pay higher fees and receive a lower advance rate.

The typical invoice factoring terms offered by Triumph Business Capital include:

• Funding amount: Up to $20 million, with no stated minimum
• Advance rate: About 90%
• Repayment term & schedule: Repaid as your invoices are paid
• Personal guarantee: Possible
• Speed to funding: Five to seven business days to provide you with the initial funding, and less than 24 hours once your account has been established

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, you 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

To evaluate if your business qualifies for invoice factoring, Triumph business Capital considers:

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

To qualify, you need to work with B2B or B2G customers. Additionally, your 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

Some additional features of invoice factoring with Triumph Business Capital are:

• 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 you’re responsible if your customers don’t pay. The length of time Triumph Business Capital will hold an unpaid invoice before requiring you to pay will be established in your factoring agreement. If you need nonrecourse factoring Triumph Business Capital may be able to assist you with a lower advance rate.

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 your industry can mean a faster approval time. Additionally, your customers may already be familiar with the company too.

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 were unable to get approved for funding. To read more reviews like these, visit our Triumph Business Capital reviews page.

How to Apply With Triumph Business Capital

You can apply for Triumph Business Capital invoice factoring online. It takes roughly five to seven days to get your application approved and your first invoices funded. After you’re approved, all future invoices will take 24 hours. You can receive up to $20 million in invoice financing with advance rates around 90%.

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Payability: Best Invoice Factoring Company for Ecommerce Businesses

Payability is a good option for ecommerce businesses selling directly on marketplaces such as Amazon, Walmart, and Etsy. With Payability, ecommerce businesses can borrow against future or daily marketplace invoices, for as little as 1% of gross sales per month. The number of marketplaces Payability serves keeps increasing, which means more businesses can benefit from this service.

Payability Factoring Rates

The typical rates, costs, and fees you can expect from Payability are:

• Discount rate:
  • Daily invoices: Flat monthly rate starting at 1% to 2% of gross sales
  • Future invoices: Flat weekly fee starting as low as 0.75% of future receivables
• Prepayment penalties or termination fees: None
• Additional fees: None

In the event Payability advances against your future receivables and collects sooner than expected, you’ll get a rebate equal to the number of weeks early the collection occurred. For example, say collection happened four weeks early on $100,000 in receivables, then your rebate would equal $3,000 — $750 for each week times four.

Payability Invoice Factoring Terms

The typical invoice factoring terms offered by Payability include:

• Funding amount:
  • Daily Invoices: No maximum; minimum advance is $100
  • Future Invoices: Typically from $3,000 to $250,000; larger limits may be considered with additional approval
• Advance rate:
  • Daily Invoices: About 80%
  • Future Invoices: About 80% or 85%
• Repayment term & schedule: Repaid as your marketplace invoices are paid
• Personal guarantee: Likely required
• Speed to funding: Minutes to apply with a decision and funding within 24 hours

Payability Factoring Minimum Qualifications

To evaluate if your business qualifies for factoring, Payability considers:

• Credit score: Not a factor
• Time in business:
  • Daily Invoices: At least 90 days of sales history with your ecommerce marketplace
  • Future Invoices: At least eight months of consistent sales history with your ecommerce marketplace
• Annual revenue:
  • Daily Invoices: About $2,000 per month in sales with your ecommerce marketplace
  • Future Invoices: About $7,500 per month in sales on multiple items with your ecommerce marketplace

When qualifying you for invoice factoring, Payability is mostly concerned with your performance on your ecommerce marketplace like Amazon, Walmart, and Etsy. Because of this, Payability’s qualifications are focused on your marketplace sales volume and history. In addition to your sales history and volume, your account health needs to be good.

Payability Invoice Factoring Additional Features

Some additional features of invoice factoring with Payability are:

• Customer interaction: Collection of receivables from your ecommerce marketplace
• Assignment of Invoices: Required

Payability helps collect your ecommerce marketplace accounts receivable, daily or future. Depending on the invoice factoring product you choose, you’ll either borrow against daily receivables or future marketplace receivables.

What Payability Is Missing

The downside to Payability is that it’s only available to ecommerce marketplace sellers. So, if this isn’t you, then Payability isn’t the right provider, and you should choose one of the other best factoring companies. Given the growth in ecommerce and the number of people engaging in this type of business, it’s a great niche product if you fit the target profile.

Payability Reviews

We’ve compiled available Payability reviews and found generally positive ratings. Positive Payability reviews came from ecommerce sellers who like getting funds from their marketplace immediately instead of the usual biweekly timeline. There were few negative Payability reviews. Those that existed dealt with miscommunication over how much Payability charges. Read more on our Payability reviews page.

How to Apply With Payability

If you’re looking for Amazon seller financing, you can apply with Payability online in minutes. The main step is to connect Payability with your marketplace accounts like Walmart, Amazon, eBay, and Etsy. If approved, funding can happen as soon as the next business day.

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Alternatives to Invoice Factoring Companies

There are several alternatives to invoice factoring if it turns out it’s not right for you. Examples of when invoice factoring might not be appropriate include if you don’t have B2B or B2G accounts receivable, your business is creditworthy with an abundance of collateral, or your company is very small. Check out our article on invoice financing companies, which is similar in many regards but offers lower limits and business-to-consumer (B2C) options.

Some of the best alternatives to invoice factoring include the following:

• Business line of credit: A small business line of credit (LOC) allows you to make advances against a pre-established credit limit and only pay interest on the amount advanced; check out this article about some Best Small Business Lines of Credit.
• Fast business loans: With a fast business loan, you can get access to short-term financing in as soon as one to three business days; as a trade-off to the speed with which you can get the funds, you’ll typically pay a high-interest rate.
• Working capital loans: Working capital loans can be used to buy inventory, cover payroll, or pay for other day-to-day operational expenses; there are lenders that can provide you with quick working capital funding in a matter of days.
• Business credit card: A business credit card is a good option for businesses that are very small and want capital to manage employee expenses or earn rewards.
• SBA CAPLine: With the Small Business Administration (SBA) CAPLine program, your small businesses can get up to $5 million in short-term and cyclical working capital financing.

Bottom Line ― Best Invoice Factoring Companies

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 typically qualify. Furthermore, 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.

We recommend Paragon Financial Group as the overall best small business invoice factoring company out of those reviewed. Paragon can even help if you are experiencing credit issues. Further, you can select the invoices to factor, expect competitive advance rates of 80% to 90% up to $10 million and expect monthly discount rates starting at 1.25% to 2%.

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