Best Factoring Companies

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Invoice factoring is an easy way to get quick access to cash. Getting a company to pay you for your unpaid invoices is an excellent alternative to a business loan. We dove deep into the best factoring companies out there and identified eCapital as our top recommendation. Its risk-free non-recourse factoring is suitable for small and large businesses alike, with options ranging from $30,000 to $10 million in monthly invoice advances.

The Best Factoring Company for Most

Whether you’re an entrepreneur just getting started or a larger business needing upwards of $10 million per month, eCapital is our top pick for invoice factoring. Its non-recourse program is a great place to start since it protects you from owing money against invoices that never get paid.

You can get up to 90% of your invoice amounts in advance, and you get a dedicated credit manager to walk you through the process, plus answer any questions you have along the way. It’s an excellent option, even if you’re unfamiliar with the process.

The Best 8 Factoring Company Options to Consider:

1. eCapital — Best for most
2. BlueVine — Best for large factoring lines
3. Riviera Finance — Best for fast funding
4. American Receivable — Best for businesses with poor credit
5. Triumph — Best for staffing companies and government contractors
6. Breakout Capital — Best invoice factoring for startups
7. altLINE by The Southern Bank — Best for bank invoice factoring
8. RTS Financial — Best for industry-specific factoring

When it Makes Sense to Invest Into a Factoring Company

If you’re a B2B business, you’re all too familiar with complex cash flow challenges, especially if you deliver services or goods and receive payment later. Invoice factoring is an excellent loan alternative that helps inject cash into your business so you don’t have to wait on outstanding invoices to pay your bills, run payroll, and buy more inventory.

Although it’s not really suitable for large, long-term investments or purchases, it’s a quick and easy way to get fast cash when you need it and resolve negative cash flow issues.

To sweeten the deal, most factoring companies are incredibly flexible. With most, you can choose if you want to factor a handful of invoices, all of them, or something in between, making it a great option to help keep cash flow positive.

However, it’s not a good solution if you don’t have cash flow issues or aren’t a B2B business. Even if you have outstanding invoices, it’s not worth paying the additional fees to access your money early if you can afford to wait for those payments to come through.

#1 – eCapital — The Best Factoring Company for Most

If you issue invoices with up to 90-day payment terms, eCapital is our top pick for businesses of all sizes. Startups and small businesses can get up to $250,000 in just a few days to satisfy immediate cash flow needs, and larger businesses can get millions of dollars in the next 24 hours.

Since launching in 1994, eCapital has provided $22+ billion in funding to over 17,800 clients, making them an established powerhouse in the commercial finance space.

Whether you need help processing payroll, fulfilling a contract, purchasing inventory, or making big moves, joining eCapital’s client base is one of the easiest processes we’ve seen.

Entrepreneurs and small businesses typically have difficulty getting traditional loans, but eCapital offers specialized small business invoice factoring to help cover everyday and emergency cash flow problems. As such, it eliminates the high barriers to entry and helps provide cash flow relief to businesses of all sizes in as little as one business day.

To sweeten the deal, there are no long-term contracts since eCapital works on rolling month-to-month agreements with its clients.

And when the invoice comes due, the eCapital team collects payments for you and sends over your remaining balance on the invoice minus the 3.5% fixed fee owed per invoice.

When you sign up, you get hands-on customer support and a dedicated credit manager along with everything you need to make the process as smooth as possible (even if you’ve never done it before).

In addition to invoice factoring, eCapital provides other alternatives to bank financing. Other funding solutions include accounts receivables management, purchase order financing, and credit protection. 

So, they can essentially become your company’s one-stop shop for working capital. eCapital is our top pick for many reasons, but some of the most prevalent include:

• Financing solutions for every industry
• $30,000 to $10 million in fundings per month
• Free credit manager
• Up to 90% advance on invoices
• 3.5% fixed fee per invoice
• Non-recourse factoring

eCapital often works with startups and businesses with tax issues. They offer a “soft touch” service when collecting payments from your customers, so you don’t burn any bridges with your clients. 

#2 – BlueVine — The Best for Large Factoring Lines

BlueVine is one of the most reliable and reputable factoring solutions on the market today. For those of you with large sums of outstanding invoices, BlueVine will be a top choice to consider.

They offer factoring lines up to $5 million with rates starting at just 0.25% per week. 

Getting started is easy. You can fill out an online application in less than ten minutes. Then BlueVine will review your information and contact you with a decision. Approvals are often processed within 24 hours. 

BlueVine syncs with accounting software, so it’s easy to select invoices that you want to factor. Alternatively, invoices can be uploaded directly to your BlueVine dashboard. They typically pay working capital loans of up to 85-90% of the invoice amount. 

You must meet the following minimum qualifications to apply:

• Your business operates as B2B
• $10,000 minimum monthly revenue
• 530 minimum FICO score
• At least three months in business

BlueVine has helped large brands like Walgreens, Groupon, Office Depot, and Sephora with invoice factoring. If you’re a B2B seeking large factoring lines, look no further than BlueVine.

#3 – Riviera Finance — The Best for Fast Funding

Riviera Finance has been helping businesses with invoice factoring for 50+ years. They serve over 1,400 clients and manage 20,000+ customer accounts every month. 

This is a top solution for small and medium-sized businesses that need cash fast. 

What makes Riviera Finance unique compared to other solutions on the market is its ability to provide quick funding. Businesses can receive cash within 24 hours after invoices are submitted. It takes other factoring companies that long just to review an application. 

Riviera Finance works with a wide range of B2B organizations, including transportation companies, oil and gas businesses, wholesalers, manufacturers, and temporary staffing agencies. 

Other top reasons to use Riviera Finance for invoice factoring include:

• Non-recourse factoring
• Get paid up to 95% of the invoice amount
• Funding on-demand
• No debt

Overall, Riviera Finance is a full-service factoring company. In addition to invoice factoring, they handle receivables management and credit services as well. If you need cash ASAP, Riviera Finance should be at the top of your list. 

#4 – American Receivable — The Best for Businesses With Poor Credit

Some businesses struggle to qualify for invoice factoring because they don’t meet the minimum qualifications imposed by certain factoring companies. 

But American Receivable provides funding to all businesses, even those with poor credit.

This factoring company has been around for 40+ years. What makes them unique is that they don’t focus on the bottom line or credit history of a business when reviewing applications. Instead, they prioritize the creditworthiness of the clients being invoiced. 

Here are some other reasons why we recommend American Receivable for invoice factoring:

• Working capital up to $5 million
• Advances up to 95% of the invoice value
• No minimum limits
• Funding as fast as 24 hours
• No debt
• Simple online application
• Not affiliated with any banks
• No upfront fees or due diligence fees
• No long-term contracts

American Receivable has delivered $1+ billion in working capital to 4,000+ businesses. They offer both recourse and non-recourse factoring as well. Rates start as low as 0.8%.

#5 – Triumph Business Capital — The Best for Staffing Companies and Government Contractors

Since launching in 2004, Triumph Business Capital has helped 7,000+ small to midsize businesses with invoice factoring. 

They typically assist businesses in specific industries, like staffing agencies and government contractors. 

That’s because these types of businesses typically have cash flow problems and issues getting paid on time. Triumph Business Capital also has solutions for trucking companies and freight brokers. 

Staffing companies will undoubtedly benefit from payroll funding from this factoring company. Other reasons to choose Triumph Business Capital include:

• No monthly minimums
• No risk contracts
• No hidden fees
• Work order factoring
• Funding as fast as same-day

Triumph Business Capital has additional solutions like asset-based lending, equipment financing, fuel cards, back-office services, and more. They can ultimately become a one-stop shop for multiple business financing needs.  

#6 – Breakout Capital — The Best for Startups

Many factoring companies require a minimum time in business to qualify for funding, making it challenging for startups to take advantage of this service.

But Breakout Capital doesn’t have these strict requirements.

Breakout Capital doesn’t impose a minimum time in business or minimum FICO score to qualify for invoice factoring. There aren’t any monthly revenue requirements either. These more lax qualification terms are perfect for startups that can’t get cash elsewhere. 

Companies use Breakout Capital’s FactorAdvantage for the following purposes:

• Short-term bridge loans
• Receive funding prior to receivables ready to factor
• Bank to factor transfers
• Eliminate liens or cash advances

Breakout Capital has a fully transparent funding process. There are never any hidden fees or surprise charges. They also offer business loans up to $1 million with rates starting as low as 1.25% per month. 

#7 – altLINE by The Southern Bank — The Best for Bank Invoice Factoring

Most factoring solutions are offered by independent factoring companies. But some businesses prefer to work with banks. 

If you fall into this category, altLine by The Southern Bank is the perfect factoring solution for you.

The Southern Bank has been around for 80+ years. Factoring your invoices with a bank cuts out the middleman and keeps costs low. By going directly to a bank, you’re getting money from a direct source of funding. Without those additional borrowing costs, The Southern Bank can pass their savings on to their factoring customers.

Here’s why we recommend altLINE:

• No application fees
• Advances up to 90% of the invoiced amount
• Rates starting at 0.50%
• Quick approvals

Since 1936, this factoring company has provided $570+ million in funded invoices. This is a reliable way to get invoices factored directly from a bank. A couple of advantages of invoice factoring with a bank versus an independent company are getting greater security and stability for clients and getting competitive rates.

#8 – RTS Financial — The Best for Industry-Specific Factoring

RTS Financial is another leader in the factoring space. They’ve been providing factoring services for 25+ years.

While RTS Financial is best known for its solutions for trucking companies, they offer invoice factoring to a wide range of business types and industries.

Some of the industries served by RTS Financial include:

• Trucking
• Distribution
• Manufacturing
• Textiles
• Oilfield services
• Staffing

If your business falls into one of those categories, RTS Financial will be a top choice to consider. 

RTS Financial offers up to 97% advance rates on invoices, which is the highest we’ve seen when researching the best factoring companies. They don’t have any hidden fees, minimum volume fees, or ACH fees. 

It’s easy to upload invoices online, and you can get funded as soon as 24 hours. 

Methodology For Choosing The Best Invoice Factoring Company

There are dozens of different invoice factoring solutions on the market today. How can you find the best choice for you and your business with so many options to consider?

Below is the methodology we used to narrow down the top picks listed in this guide. You can use the following factors to weigh your options and compare solutions based on your personal needs. 

Funding Amount

How much money do you need?

Some businesses may just want to factor one or two invoices for $5,000 or $10,000 to meet short-term obligations. Other organizations have larger invoices with sums in the millions. Always check the minimum and maximum funding amount when you’re evaluating a potential factoring company. 

You should also consider the percentage of the invoice you’ll get upfront as working capital. 90% is decent. But we’ve seen factoring companies offer up to 95% or even 97% of invoice amounts. Make sure the company you select can accommodate your working capital needs.

Funding Time

How soon do you need cash?

If you have past-due bills or need to make payroll, you’ll definitely have a greater sense of urgency. Consider using a factoring company that provides same-day funding or funding within 24 hours of an invoice upload. 

Factoring Rates and Fees

As with most business services and loans, the fees and rates vary from company to company. 

Don’t overlook hefty fees for access to fast cash. Some factoring companies will surprise you with application fees, transfer fees, service fees, origination fees, and more. But this can easily be avoided by choosing a factoring company with transparent pricing. 

Look for a service that only charges the factoring fee. These starting rates can range anywhere from 0.25% to 1.5%.

Recourse vs. Non-Recourse Factoring

Generally speaking, invoice factoring can be segmented into two categories—recourse and non-recourse.

Recourse factoring means your business can be held responsible for the debt if the invoices go unpaid. While these solutions typically come with lower rates and more favorable terms, they are riskier for businesses.

With non-recourse factoring, the factoring company assumes all liability for unpaid invoices. For most businesses, non-recourse factoring is more appealing, even though the rates and terms may not be as budget-friendly. 

Whole Ledger Factoring vs. Spot Factoring

Some factoring companies force you to factor all of your receivables, known as “whole ledger factoring.” Other companies provide more flexibility and offer invoice factoring on-demand or what is known as “spot factoring.”

If you want the ability to pick and choose which invoices are factored, spot factoring will be the better option for your business. 

Summary

What’s the best invoice factoring company? It depends on what you’re looking for.

eCapital is our top pick for most businesses. BlueVine is an excellent choice if you’re looking for a large factoring line. Rivera Financing offers fast funding and access to cash in less than 24 hours. If your business has poor credit, use American Receivable. 

For industries like staffing, trucking, and government contracting, use Triumph Business Capital or RTS Financial. 

Breakout Capital is our top pick for startups. If you’d rather work with a bank instead of an independent factoring company, check out altLINE by The Southern Bank.