The best non-recourse factoring companies have competitive rates, low fees, flexible qualification requirements, and quick access to funding. Many will also have a track record of delivering excellent customer service, high advance rates, and large funding amounts.
I’ve selected providers that offer non-recourse factoring products to most industries. Some options on the list even have special perks and benefits to select types of companies, helping you get more competitive pricing.
Here are my recommendations for the seven best non-recourse factoring providers:
- eCapital: Best overall for flexible terms
- Triumph: Best for value-added services
- OTR Solutions: Best for personalized service
- Riviera Finance: Best for long-term factoring needs
- 1st Commercial Credit: Best for established businesses
- 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 | 1%-4% | 100% | None | 24 hours |
 | Varies | 1%-4% | 90%-100% | None | Same day |
 | Varies | 2%+ | 95% | None | 5-7 days |
 | $10 million | 0.69%-1.59% | 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 I Like eCapital
If you’re looking for the best overall combination of rates and terms, consider eCapital. It has separate freight and invoice factoring products, each with non-recourse options. Businesses invoicing over $1 million per month may also use the company’s nonnotification factoring package, which is helpful if you want to limit exposure to business clients knowing of a factoring company’s involvement.
eCapital also offers additional services, such as InstaPay, which allows you to transfer money in real time with a small $10 fee for instant transfers. Its credit card products also allow you to track and control employee spending. The company also has a digital platform that helps streamline payments to third-party companies.
You can visit the eCapital website and request a callback to get started. The company states you can get a quote within five minutes or call its toll-free number if you prefer to speak with someone immediately.
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 I 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 if you’re looking to consolidate multiple business needs with the same company.
It is also one of the providers in our guide that offers up to a 100% advance rate alongside eCapital and OTR Solutions. 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.
OTR Solutions: Best for Personalized Service
| |
Rates & Terms | |
Estimated Fees Per 30 Days | Typically from 1% to 4% |
Estimated APR | Varies |
Loan Amount | Varies |
Repayment Term | Up to 90 days |
Advance Rate | 90%-100%, but may vary |
Funding Speed | As soon as the same day |
Qualifications | |
Revenue | None |
Time in Business | None |
Why I Like OTR Solutions
OTR Solutions makes the list as the best pick for personalized service. This is because it adheres to a no-voicemail policy during normal business hours. 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.
Whereas eCapital simply offers freight factoring, OTR Solutions offers both transportation and freight broker factoring products. Additional products and services you can use include its ELEVATE product, which can help create a website for your business, and other resources to help manage your business, such as its video library and API integrations.
The company offers a safety score monitoring system that can track roadside inspection data to ensure compliance with hazardous materials requirements, vehicle maintenance, and more.
To get started, visit the OTR Solutions website and complete a form requesting a callback.
Riviera Finance: Best for Long-term Factoring Needs
 | |
Rates & Terms | |
Estimated Fees Per 30 Days | 2% and up |
Estimated APR | 24% and up |
Loan Amount | Varies |
Repayment Term | Up to 60 days |
Advance Rate | 95% |
Funding Speed |
|
Qualifications | |
Revenue | None |
Time in Business | None, but 3 months is recommended |
Why I Like Riviera Finance
Riviera Finance requires a minimum of a six-month contract for factoring, which is why it made the list as the best option for long-term factoring needs. However, this is an important factor to consider when determining the total cost of factoring. Even so, it’s also 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 compared with other companies on this list. It can take five to seven days from the time you apply until you receive funding.
Riviera Finance works with popular industries, including transportation, oil and gas, renewable energy, staffing agencies, telecom services, and utility and cabling contractors. Startup companies are also eligible for financing, as it has no set minimum period in business required. You also have the flexibility to choose which invoices you’d like to factor in.
To begin the process, you can complete an application online. You can also call its toll-free number if you have any questions.
1st Commercial Credit: Best for Established Businesses
| |
Rates & Terms | |
Estimated Fees Per 30 Days | 0.69%-1.59% |
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 I Like 1st Commercial Credit
1st Commercial Credit has one the highest recommended revenue requirements listed here, behind AdvancePoint Capital, 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 it’s been selected as a good option for established businesses.
It offers some of the most favorable starting rates in this guide, starting at 0.69%, although 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 business 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 I Like RTS Financial
RTS Financial has one of the fastest funding speeds in this guide at 24 hours. It typically works with trucking companies but also serves those in oilfield services, textiles, staffing, distribution, manufacturing, and more. Like Triumph and OTR Solutions, RTS Financial has no stated maximum funding amount, so there is flexibility depending on your customer’s creditworthiness and qualifications.
It also provides several 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 $3,200 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 the Best Non-recourse Factoring Companies Were Chosen
I looked at the following items when choosing the best non-recourse factoring companies:
- Advance rates and funding amounts
- Estimated fees and rates
- Repayment terms
- Qualification requirements
- Ease of application
- Application to funding speed
- Additional benefits such as money-saving programs or discounts
- Customer reviews and ratings
Alternatives to Non-recourse Factoring
While factoring can address temporary cash flow issues, you could look into potentially cheaper and more flexible solutions. Consider the following:
- 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 to 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)
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 because of the higher level of risk involved.
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 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.
The main disadvantage to non-recourse factoring is it can often be an expensive financing option. This is due to its high-risk nature if your customer neglects to pay the invoice and the participating factoring company is out of money. It can also be more difficult to get compared with 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 nonpayment.
Bottom Line
When searching for non-recourse factoring providers, it’s important to remember that it tends to be more expensive than recourse factoring since the factoring company takes on the risk of your client defaulting. However, it can still be a good financing option if you need quick access to funds and need to support your business’s cash flow.
If you’re certain this is the best option for your company, the providers selected can provide you with the funding you need at competitive rates, quick funding speeds, and flexible qualification requirements.
