5 Best Non-recourse Factoring Companies

Triumph Business Capital is our pick as the overall best non-recourse factoring company. It has the best combination of fees, advance rates, and funding speeds. It also does not have a specified maximum financing amount and determines eligibility based on your specific business qualifications.

This provider offers factoring services for fleets, owner-operators, and freight brokers. You also have flexibility with deciding which invoices to factor. There are no financing minimums, and once approved, you can get same-day funding. After approval, you can manage your account through a web portal. Features include the ability to select and submit invoices to factor, run credit checks, and view payment status.

Some of the added benefits you can get by working with this lender is access to fuel discounts through its fuel card program. Triumph also offers insurance and equipment financing, and you can speak with the team to be matched with these additional products and services.

To start the application process, you can visit the Triumph Business Capital website and submit an online form. You will then be contacted to learn more about your needs and will be given further instructions to complete a loan application.

eCapital has the ability to work with companies in a number of different industries. However, it offers its best terms, fastest funding speeds, and flexibility in qualification requirements to transportation companies.

As an example, transportation companies typically can get approved within 48 hours of applying. Once you have received an approval, funding can be issued immediately. For businesses in a different industry, approvals can sometimes take several weeks, with a 24-hour turnaround time for funding.

If you choose eCapital’s freight factoring product, you can also get pre-approved for its line of credit product. This can be used on an as-needed basis for bills, repairs, or other unexpected expenses. You can get a credit limit of up to $2,500 per truck.

Other benefits of working with this provider is its credit card product, ability to instantly transfer money from factoring invoices, and an online portal to manage your account. Combined, these tools allow you to track and organize your expenses and give you easy access to funding.

To apply, you can visit the eCapital website and complete a form requesting a callback. You can also call the company’s toll-free number to speak with a representative.

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.

1st Commercial Credit has the highest revenue requirement listed here. It also typically works with clients who have a prior history in 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 the qualifications of your clients and the 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 get the process started, you can complete the lender’s online form requesting a callback or a quote. You can also call the company’s toll-free number 24/7.

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 in 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.

Popular industries that Riviera Finance works with include transportation, oil & 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.

Recourse factoring would leave your business liable for the debt if your customer fails to pay the factoring company. With non-recourse factoring, the factoring company takes that risk and your business would not be liable in the event of default.

If you have issued an invoice to a client but need funds more quickly, you can assign the invoice to a factoring company in exchange for an advance payment. When your client pays the factoring company, you’ll receive the remainder of the invoice minus the factoring company fees. Learn more in our guide on how invoice factoring works.

Non-recourse factoring typically costs 2% to 4% per month for the amount you need advanced. It tends to be more expensive than recourse factoring because the factoring company takes on the risk that your customer may default on the amount due.