5 Best Non-recourse Factoring Companies
Tom has 15 years of experience helping small businesses evaluate financing and banking options. He shares this expertise in Fit Small Business’s financing and banking content.
This article is part of a larger series on Business Financing.
With non-recourse factoring, if your customer fails to pay an invoice, your business isn’t held liable by the factoring company to make payment. Qualifying for non-recourse factoring is more difficult than qualifying for recourse factoring because businesses often need a higher invoice volume and customers with stellar credit. While most invoice factoring companies will offer non-recourse factoring to their top customers, we’ve selected the five best options for small business owners.
Provider | Best For |
|---|---|
Best overall | |
Shorter repayment terms | |
No minimum requirements | |
Higher advance rates | |
Favorable for freight factoring |
Triumph Business Capital: Best Overall
 | |||
Maximum Funding | Up to $20 million | Advance Rate | Up to 90% |
Discount rate | 1% to 4% per month | Minimum Annual Revenue | $100,000 |
Expected Annual Percentage Rate (APR) | 12% to 72% | Funding Speed | Up to 7 days |
Why we recommend Triumph Business Capital: Triumph Business Capital tops our list of non-recourse factoring companies because of the combination of its low minimum revenue threshold and its high factoring capacity. Its ability to service both smaller businesses and larger clients makes it an attractive choice for anyone seeking non-recourse factoring.
altLINE: Favorable for Short Repayment Terms
 | |||
Maximum Funding | $4 million | Advance Rate | Up to 90% |
Discount rate | 0.5% to 3.0% per 30 days | Minimum Annual Revenue | $180,000 |
Expected APR | 6% to 55% | Funding Speed | 2 days |
Why we recommend altLINE: altLINE is a great provider of non-recourse invoice factoring for small business owners who want a solution with short repayment terms. The way altLINE structures its fees makes it advantageous for invoices that are repaid within 30 days. For a small business that has a high-quality and fast-paying customer, altLINE would be the best solution.
Riviera Finance: No Minimum Requirements
 | |||
Maximum Funding | $2 million | Advance Rate | Up to 95% |
Discount rate | Starts at 2% per 30 days | Minimum Annual Revenue | None |
Expected APR | 24% to 70% | Funding Speed | 24 hours after approval |
Why we like Riviera Finance: Riviera Finance offers funding within 24 hours of approval and will advance up to 95% of your invoices. An added perk is that there is no monthly minimum revenue requirement, which is unusual in the invoice factoring industry. Rates may be a bit higher than competitors. However, smaller businesses with high-quality clients may be able to qualify.
1st Commercial Credit: Higher Advance Rates
 | |||
Maximum Funding | $10 million | Advance Rate | Up to 95% |
Discount rate | 0.69% to 1.59% + fees | Minimum Annual Revenue | $120,000 |
Expected APR | 10% to 65% | Funding Speed | Up to 5 days |
Why we recommend 1st Commercial Credit: 1st Commercial Credit is an established provider that has earned a reputation for its flexibility around providing funding to less-qualified borrowers. In some cases, the company reports that small business owners can receive non-recourse factoring, but you’ll need to contact the lender directly for more information. Online customer reviews indicate that there are a number of fees tacked on to the advance rate, thus increasing the overall cost of factoring. However, it will advance up to 95% of invoices, which is one of the highest rates in the factoring industry.
eCapital: Favorable for Freight
 | |||
Maximum Funding | $10 million | Advance Rate | Up to 90% |
Discount rate | 1.25% to 2.0% per 30 days | Minimum Annual Revenue | $360,000 |
Expected APR | 16% to 55% | Funding Speed | Up to 7 days |
Why we recommend eCapital: eCapital offers non-recourse invoice factoring and specializes in the trucking and freight industries. It will advance up to 90% of invoices and has a factoring capacity of $10 million. Also, eCapital won’t pull credit information on you or your business and is only concerned with the creditworthiness of your customers.
How We Evaluated Non-Recourse Factoring Companies
When evaluating non-recourse factoring companies, first, we considered the overall cost and terms that each of these companies offered. Then, we looked at the time it would take to receive funding and other requirements like time in business.
Bottom Line
While getting non-recourse factoring can be more challenging than getting other forms of financing, it also protects the business owner from downside risk. The best way to qualify for non-recourse factoring is by establishing a long-term relationship with a factoring provider so that the history of payments from debtors can be referenced easily when you request a non-recourse contract.
