The best non-recourse factoring companies have competitive rates, low fees, and a track record of delivering excellent customer service. Many will also have a combination of high advance rates, large funding amounts, fast funding speeds, and flexible qualification requirements. Some options on our list have special perks and benefits to select types of companies, helping you get more competitive pricing.
We’ve selected lenders that offer non-recourse factoring products to most industries. Here are the six best non-recourse factoring providers:
- eCapital: Best overall for flexible terms
- OTR Solutions: Best for personalized service
- Triumph: Best for value-added services
- Riviera Finance: Best for smaller funding needs
- 1st Commercial Credit: Best for established businesses with stable cash flow
- RTS Financial: Best for trucking companies seeking fast funding
Best Non-recourse Factoring Companies at a Glance
Maximum Loan Amount | Estimated Fees Per 30 Days | Maximum Advance Rate | Required Annual Revenue | Application to Funding Speed | |
|---|---|---|---|---|---|
 | $30 million | 1%+ | 80%-100% | None | 48 hours |
 | Varies | 0.5%-4% | 90%-100% | None | 48 hours |
 | Varies | 1%-4% | 100% | None | 24 hours |
 | $2 million | 2%+ | 95% | None | 5-7 days |
 | $10 million | 0.69%-4% | 95% | $120,000 | 3-5 days |
 | Varies | 1.5%-5% | 97% | 24-48 hours | |
eCapital: Best Overall for Flexible Terms
| |
Rates & Terms | |
Estimated Fees Per 30 Days | 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%-100% |
Funding Speed | Typically 48 hours after applying |
Qualifications | |
Revenue | None |
Time in Business | None |
Why We Like eCapital
If you’re looking for the best overall combination of rates and terms, we recommend considering eCapital. It has separate products for freight factoring and invoice factoring, each with non-recourse options. Businesses invoicing over $1 million per month may also be able to utilize the company’s non-notification factoring package, which is helpful if you don’t want your business clients to be made aware of a factoring company’s involvement.
Customers can take advantage of additional services such as the company’s InstaPay and credit card products. InstaPay allows you to transfer money in real time with a small $10 fee for instant transfers. Its credit card product allows you to track and control employee spending. The company also has a digital platform that helps streamline payments to third-party companies.
To get the process started, you can visit the eCapital website and request a callback. The company states you can get a quote within five minutes, and you can also call its toll-free number if you prefer to speak with someone right away.
OTR Solutions: Best for Personalized Service
| |
Rates & Terms | |
Estimated Fees Per 30 Days | Typically from 0.5% to 4% |
Estimated APR | Varies |
Loan Amount | Varies |
Repayment Term | Up to 90 days |
Advance Rate | 90%-100%, but may vary |
Funding Speed | Within 48 hours of receiving the application |
Qualifications | |
Revenue | None |
Time in Business | None |
Why We Like OTR Solutions
During normal business hours, OTR Solutions (formerly branded as OTR Capital) adheres to a no-voicemail policy. In other words, if you call, you can speak with a live representative. The company also has a dedicated support team for carriers to assist with tasks involving operations, accounts receivables, and broker and shipper approvals.
It offers transportation and freight broker factoring products. Additional products and services you can utilize include its ELEVATE product, which can help create a website for your business, as well as tools that allow for fuel advances, fuel discounts, and lumper fee advances.
The company offers a safety score monitoring system that can track data from roadside inspections to ensure compliance with hazardous materials requirements, vehicle maintenance, and more.
To get the process started, you can visit the OTR Solutions website, where you can complete a form requesting a callback.
Triumph: Best for Value-added Services
 | |
Rates & Terms | |
Estimated Fees Per 30 Days | 1%-4% |
Estimated APR | 20%-80% |
Loan Amount | Varies (no stated maximum) |
Repayment Term | Up to 90 days |
Advance Rate | Up to 100% |
Funding Speed | As fast as 24 hours after applying |
Qualifications | |
Revenue | None, but $100,000 annually is recommended |
Time in Business | None |
Why We Like Triumph
Triumph has a wide range of additional products and services that your business may find useful. Some examples include equipment financing, fuel card programs, and insurance. As a result, it’s a good lender to consider if you’re looking to consolidate multiple business needs with the same company.
The company also has a web portal that allows customers to easily manage invoices, run credit checks, and handle other administrative tasks. It has factoring programs available for fleets, owner-operators, and freight brokers.
Head over to the Triumph website to start the application process. There, you can complete a form requesting a callback, after which you’ll be contacted by a lending representative to learn about your specific needs.
Riviera Finance: Best for Smaller Funding Needs
 | |
Rates & Terms | |
Estimated Fees Per 30 Days | 2% and up |
Estimated APR | 24% and up |
Loan Amount | Up to $2 million |
Repayment Term | Up to 60 days |
Advance Rate | 95% |
Funding Speed |
|
Qualifications | |
Revenue | None |
Time in Business | None, but 3 months is recommended |
Why We Like Riviera Finance
Riviera Finance offers the lowest amount of funding in this guide. It also requires a minimum of a six-month contract for factoring; that’s something to consider when determining the total cost of factoring. However, it’s an excellent choice for small recurring factoring needs because of its low rates, easy qualification requirements, and ability to advance up to 95% of an outstanding invoice.
With that said, the initial process of getting set up for factoring is one of the slowest on our list. It can take five to seven days from the time you apply until you receive funding. However, after you receive approval, funding typically occurs within 24 hours. You also have the flexibility to choose which invoices you’d like to factor in.
Popular industries that Riviera Finance works with include transportation, oil and gas, renewable energy, staffing agencies, telecom services, and utility and cabling contractors. Startup companies are also eligible for financing, as there is no set minimum period of time in business required.
To begin the process, the lender offers an online application that you can complete. You can also choose to call its toll-free number if you have any questions.
1st Commercial Credit: Best for Established Businesses With Stable Cash Flow
| |
Rates & Terms | |
Estimated Fees Per 30 Days | 0.69%-4% |
Estimated APR | 18%-70% |
Loan Amount | $10,000-$10 million |
Repayment Term | Typically up to 90 days |
Advance Rate | 95% |
Funding Speed | 3-5 days |
Qualifications | |
Revenue | $120,000 annually recommended, but can vary |
Time in Business | Minimum 12 months recommended, but can vary |
Why We Like 1st Commercial Credit
1st Commercial Credit has the highest revenue requirement listed here and typically works with clients who have a prior history of being in business. However, it can offer competitive rates and large funding amounts, which is why we’ve selected it as a good option for established businesses.
Rates range from 0.69% to 4%, although the provider states that most of its clients will see an average fee of 2.25%. This fee can vary based on your clients’ qualifications and financing terms. Invoices that are repaid more quickly typically see lower costs.
1st Commercial Credit can work with a wide variety of industries. Its most popular industries include staffing agencies, trucking companies, construction, distributors, medical providers, manufacturers, and security guard companies.
To learn more or start the process, you can complete the lender’s online form to request a callback or a quote. You can also call the company’s toll-free number 24/7.
RTS Financial: Best for Trucking Companies Seeking Fast Funding
 | |
Rates & Terms | |
Estimated Fees Per 30 Days | 1.5%-5% |
Estimated APR | 24%-60% |
Loan Amount | Varies (no stated maximum) |
Repayment Term | Typically 30-60 days |
Advance Rate | Up to 97% |
Funding Speed | 24-48 hours |
Qualifications | |
Revenue | None ($150,000 monthly for non-trucking companies) |
Time in Business | Not stated |
Why We Like RTS Financial
RTS Financial has one of the fastest funding speeds on our list at 24 hours. It typically works with trucking companies but also serves those working in oilfield services, textiles, staffing, distribution, manufacturing, and more. The lender has no stated maximum funding amount, so there is flexibility depending on your customer’s creditworthiness and qualifications.
It also provides a number of additional benefits to save your business money, and these money-saving perks include a fuel card program. This gives you savings on gas at over 2,400 locations nationwide. You’ll also get a weekly credit line of up to $2,500 per truck that can be used for repairs or unexpected expenses. Businesses that opt for bundling fuel and factoring products can save even more money. Veterans are also eligible for additional discounts.
To manage your account, RTS Financial offers mobile and web software solutions. These tools can be used to check the credit rating of freight brokers and manage invoices for your factoring account. It can also help with various aspects of your trucking business, such as dispatch, accounting, reporting, and driver communications.
If you’re interested in learning more or applying, you can complete the provider’s online form to request a callback.
How We Chose the Best Non-recourse Factoring Companies
We looked at the following items in choosing the best non-recourse factoring companies:
- Advance rates and funding amounts
- Estimated fees and rates
- Repayment terms
- Qualification requirements
- Application to funding speed
- Additional benefits such as money-saving programs or discounts
- Customer reviews and ratings
Alternatives to Non-recourse Factoring
If you’re thinking about factoring as a way to solve temporary cash flow issues, there are some potentially cheaper and more flexible options to consider.
- Recourse factoring: With recourse factoring, your business is liable if your customer fails to pay the invoice to the factoring company. It may represent a higher risk for your company, but rates and fees tend to be lower.
- Working capital loan: This type of loan is designed to give you funding to cover daily expenses, such as payroll, rent, and other operational costs. It can come in many forms, such as a term loan and a line of credit. See our guide to the best working capital loans.
- Small business credit card: With a small business credit card, you’re given a revolving line of credit with which you can make purchases. Many providers offer 0% introductory rates and rewards programs to reduce the effective cost of purchases. View our list of the best small business credit cards.
Frequently Asked Questions (FAQs)
Non-recourse factoring can be more difficult to get compared to recourse factoring. Since the factoring company is at greater risk of losing money if your client defaults, credit and finance requirements are typically more strict to reduce the likelihood of non-payment.
With non-recourse factoring, your company is not responsible for the debt if your client fails to pay the factoring company. Meanwhile, with recourse factoring, the financial responsibility falls on your business if your client defaults. Between these two options, non-recourse factoring tends to be more expensive.
Invoice factoring allows you to get an advance on invoices you’ve issued to clients but have yet to receive payment. The invoice is assigned to a factoring company, which then collects payment from the client on your behalf. Once that payment has been made, you’ll receive the remainder of the invoice minus the factoring company fees. Learn more in our guide on how invoice factoring works.
Bottom Line
If you have outstanding invoices to clients and need payment more quickly, non-recourse factoring can be a good option, as the best providers can get you funded in as little as 24 to 48 hours. However, it tends to be more expensive than recourse factoring since the factoring company takes on the risk of your client defaulting.
If you’re certain this is the best option for your company, the providers we’ve selected can provide you with the funding you need at competitive rates.
