Advertiser Disclosure
Fortunly's Guide

The Best Invoice Factoring Companies in 2021

By
G. Dautovic

January 27,2021


Amid growing economic uncertainty, some businesses are finding it increasingly difficult to access cash. For many B2B companies, the best solution is invoice factoring or the sale of unpaid invoices. This form of financing offers numerous advantages, especially for businesses that need money quickly but aren’t able to secure a conventional bank loan. Factoring enables you to take better control of your finances, pay your employees on time, and take advantage of any investment opportunities.

Read our reviews of some of the best invoice factoring companies and learn more about this type of financing. 

Show More...

The 8 Best Invoice Factoring Companies

Best for: Overall
BlueVine
BlueVine Logo
Bottom line

BlueVine is one of the most reputable business factoring companies on the market. It’s the best choice for B2B companies that work with large corporations and need quick access to cash to cover costs or make investments. The company holds an impressive A+ rating on the BBB, while hundreds of online reviews praise its quick and straightforward services. In addition, BlueVine doesn’t place any restrictions on the types and number of invoices you can sell. You can also cancel your account at BlueVine without any cancellation fees. Read Review

  • Affordable invoice factoring rate
  • Integration with accounting software
  • No restrictions on invoices you want to sell
  • No long-term contracts
  • No termination fees
Learn More
On BlueVine Website
Minimum credit score:
530
Loan amount:
Between 85% to 90% of invoices
Minimum time in business:
3 months
Minimum revenue:
$100,000
Factoring rates start at:
0.25%
Loan terms:
1-13 weeks
Funding time:
Up to 24 hours
Best for: trucking and freight factoring
Triumph Business Capital
Triumph Business Capital Logo
Bottom line

Founded in 2004, this company offers various financial products to its clients, including asset-based lending, equipment purchasing, and insurance. Triumph Business Capital is among the best trucking and freight factoring companies. More than 7,000 businesses have already used its services, with many applauding the company’s polite and knowledgeable team. Invoice funding with this lender is suitable for both small and large businesses. The company also offers recourse and non-recourse invoice factoring. Read Review

  • Fast application process
  • Offers both types of invoice factoring
  • Knowledgeable and polite team
  • Various financial products
  • Tracks the status of your order on any device
Learn More
On Triumph Business Capital Website
Minimum credit score:
500
Loan amount:
N/A
Minimum time in business:
N/A
Minimum revenue:
$100,000 annually
Factoring rates start at:
N/A
Loan terms:
N/A
Funding time:
24-48 hours
Best for: Small businesses
Breakout Capital
Breakout Capital Logo
Bottom line

Breakout Capital differs from other factoring receivables companies because it offers a unique solution for selling accounts receivable. Its blended product, Factor Advantage, works with both invoice factoring and business loans. Customers praise the provider’s low credit score requirements and extremely polite customer support. The company’s agents are also trained to give financial advice, so you can get the best support while choosing the right type of funding for your business needs. Read Review

  • No credit score required
  • Responsive customer support
  • Various financial products and tools
Learn More
On Breakout Capital Website
Minimum credit score:
N/A
Loan amount:
Up to 1,000,000
Minimum time in business:
N/A
Minimum revenue:
N/A
Factoring rates start at:
1.25%
Loan terms:
Up to 2 years
Funding time:
N/A
Best for: Connecting with lenders
Nav
Nav Logo
Bottom line

Nav acts as a middleman between borrowers and online lenders. Thanks to its collaboration with numerous entities, Nav can help you find the best factoring company for your business. The company also offers credit score tracking and monitoring services. As such, it can help you improve your FICO and allows you to apply for invoice factoring with better repayment terms. Read Review

  • MatchFactor tools
  • Credit score monitoring
  • Various financial products
  • Secure online service
Learn More
On Nav Website
Minimum credit score:
N/A
Loan amount:
50% to 80%
Minimum time in business:
N/A
Minimum revenue:
N/A
Factoring rates start at:
3%
Loan terms:
Depends on when your customer pays
Funding time:
24 hours
Best for: Building credit
Paragon Financial Group
Paragon Financial Group Logo
Bottom line

Paragon is a non-recourse factoring company that isn’t afraid to tackle even riskier ventures with low credit or tax issues. With rates starting at around 1.25%, it is also one of the best factoring companies for truckers, manufacturers, and staffing agencies. While the minimum monthly revenue of $30,000 might chase away smaller businesses, the upper limit of $10 million gives it a wide range. Read Review

  • Non-recourse lender
  • Accepts businesses with tax problems
  • Can work with existing bank liens
Learn More
On Paragon Financial Group Website
Minimum credit score:
N/A
Loan amount:
80 to 90%
Minimum time in business:
N/A
Minimum revenue:
$30,000
Factoring rates start at:
1.25%
Loan terms:
12 months
Funding time:
24 hours
Best for: Reliable lending
altLINE
altLINE Logo
Bottom line

altLINE is a financial department of The Southern Bank created specifically to offer commercial loans. With loan amounts going up 90% and rates starting as low as 0.75%, it falls within the industry’s standards. What makes it stand out among other AR factoring companies is the monumental reputation of its parent bank, which has nearly 85 years of experience. If you’re looking for a reliable lender, altLINE is the way to go. Read Review

  • No credit score requirements
  • Decades of experience
  • Low rates
Learn More
On altLINE Website
Minimum credit score:
N/A
Loan amount:
80-90%
Minimum time in business:
N/A
Minimum revenue:
$15,000
Factoring rates start at:
0.75%
Loan terms:
Depends on when your customer pays
Funding time:
24 hours
Best for: Fast turnaround
TCI Business Capital
TCI Business Capital Logo
Bottom line

Although there are some problems with the company’s transparency practices, TCI Business Capital is still one of the most reliable factoring companies in the USA. The minimum revenue requirement is slightly higher than standard, but it does have a couple of great features to offer. For example, you can get fuel discounts for your trucking business, fund your account in a number of different ways, and check out your customers’ credits. Whether all this makes up for covert rates is up to you to decide. Read Review

  • Three-day funding time
  • Free customer credit checks
  • Fuel card program
Learn More
On TCI Business Capital Website
Minimum credit score:
N/A
Loan amount:
90%
Minimum time in business:
N/A
Minimum revenue:
$50,000
Factoring rates start at:
N/A
Loan terms:
N/A
Funding time:
24 hours
Best for: Overdue invoicing
Riviera Finance
Riviera Finance Logo
Bottom line

It’s always good to stumble upon a factoring company that isn’t too demanding about your customers. Riviera Finance will accept invoices no matter how overdue they are, which is a big plus. Even some of the best factoring companies on the market can’t offer that. In addition to that, the lender will loan you up to 95% of the invoiced amount with no requirements for credit score or years in business. These are just some of the main reasons why Riviera might become your favorite option. Read Review

  • Higher than average loan amount
  • Accepts long-overdue invoices
  • Covers all of USA and Canada
Learn More
On Riviera Finance Website
Minimum credit score:
N/A
Loan amount:
Up to 95%
Minimum time in business:
N/A
Minimum revenue:
N/A
Factoring rates start at:
2%
Loan terms:
Six months
Funding time:
24 hours
Evaluation Criteria

How We Evaluate Invoice Factoring Companies

Invoice factoring is widely used by many businesses. Wholesalers, freight brokers, and many B2B companies use factoring services for different reasons. Some need the money for rent, utility bills, and paying salaries. For others, invoice factoring is the fastest way to get cash for investment opportunities. 

Numerous online lenders act as factoring firms. In order to identify the best invoice factoring providers, we evaluate each of the companies thoroughly based on the following criteria.  

Application Process and Funding Time

One of the best things about invoice discounting companies is that you can complete the whole application process in less than a day. Aside from your personal details and information about your company, you don’t need to offer any additional data. Some companies will check your credit score and ask if you have a driver's license, but that’s it. 

You can complete the entire process online, and that’s why we look for sites that are easy to navigate and have a clear UI. We also check to see if you can submit your application using a mobile device. Integration with your accounting software is also a great option to have so you can transfer invoices automatically. 

Finally, top factoring companies should be capable of quickly transferring the money into your account. It usually takes one business day, but the best providers can complete the whole transaction in 10 minutes. 

Flexibility

In most cases, the lender will allow you to choose which invoices you want to factor, but there are exceptions. Some lenders might demand that you sell all invoices from a particular client. Also, a lender may request invoices from a certain time period or limit the number of invoices you can sell. 

Payment and Discount Rates

Our list of factoring companies includes providers that offer the best price for your invoices. There are no companies that pay the full amount for invoices, but the best ones offer up to 99% of the invoice value. Meanwhile, discount rates range between 1% and 6%. The final amount depends on numerous factors, like how long it takes your client to pay off the debt. 

Contract Length

Another thing to keep an eye out for is the length of the contract. Different financial factoring companies offer different contracts. In most cases, these are monthly or annual subscriptions.

Recourse and Non-Recourse Factoring

There are two types of invoice factoring: recourse and non-recourse factoring. Most companies offer the first type of service. Recourse factoring is a low-risk investment because the client is required to buy back the unpaid invoices from the factor. With non-recourse factoring, the factor is responsible for absorbing the unpaid bills. If you choose this method, you should expect high accounts receivable factoring rates because the factor is taking a greater risk.

Other Financial Products

While reviewing the companies, we take note of some of the other services they provide. The largest factoring companies offer small business loans, lines of credits, and other financial products. Some specialize in offering financial advice to clients, while others provide different tools for monitoring and improving your credit score. 

Security

Lastly, we examine the level of security. Online factoring can be a risky process if you are doing it through companies that can’t guarantee privacy, safeguard your personal details, and ensure secure transactions. 

Quick Breakdown

The Best Invoice Factoring Companies in 2021:

Top-Rated Factoring Companies: Reviews

BlueVine Review
BlueVine Review Logo Learn More

On Official Website

Minimum credit score:
530
Loan amount:
Between 85% to 90% of invoices
Minimum revenue:
$100,000
Factoring rates start at:
0.25%
Loan terms:
1-13 weeks
  • Affordable invoice factoring rate
  • Integration with accounting software
  • No restrictions on invoices you want to sell
  • No long-term contracts
  • No termination fees

Every credible list of the best invoice factoring companies includes the name BlueVine. There are more than 125,000 satisfied small business owners that have used BlueVine’s financial services, including loans, lines of credit, and invoice factoring. When it comes to invoice factoring, BlueVine is the best choice for businesses that need large credit limits. You can get a credit line of up to $5 million. 

Application Process and Funding Time

Countless BlueVine reviews illustrate the level of satisfaction with the simplicity and the speed of the company’s application process. In addition to providing your monthly revenue, credit score, and years in business, you’ll also need to prove that your business is a B2B company. Of course, you’ll also have to provide details about the invoices you want to sell. 

Just like many other accounts receivables factoring companies, BlueVine allows you to submit your invoices through the online dashboard. If you’re already using accounting software like QuickBooks, you can do that automatically. It usually takes one business day for BlueVine to process your application, after which you can expect the funds on your account instantly. 

To make transactions easier, the company provides its clients with a lockbox service. The downside here is the additional cost because bank lockboxes come with monthly fees. 

Terms of Service 

BlueVine is one of those invoice funding companies that doesn’t place any restrictions on the invoices you can factor. You’re free to choose which invoices you want to sell, giving you more control over your finances. But the minimum value of the invoice must be $500. 
 
BlueVine is a recourse invoice factoring lender, meaning that you’re fully responsible for your clients’ unpaid invoices. As a solution for businesses that are struggling with unpaid invoices, BlueVine offers installment loans. Borrowing might not be the best option, but in situations like this, it’s often the smartest choice. 

Invoice Factoring Rates

If you decide to use the online invoice factoring service at BlueVine, you’ll be greeted with highly affordable rates. Rates start at 0.25%, which is charged each week. You don’t need to sign long-term contracts, which means that you can cancel your arrangement with BlueVine as soon as your clients pay their invoices. BlueVine invoice factoring doesn’t include any termination fees. However, there are additional fees in case your clients pay late. The late fee is between 2% and 3%, and there are additional penalties of 0.2% to 0.3% for each additional day that the payments are late.

Final Thoughts 

BlueVine is undoubtedly one of the best factoring companies for most B2B firms. We really liked the transparency of the lender’s application requirements and factoring rates. You can get up to 90% of the invoice value and have the money in your account within 24 hours.

+ Show more
Triumph Business Capital Review
Triumph Business Capital Review Logo Learn More

On Official Website

Minimum credit score:
500
Loan amount:
N/A
Minimum revenue:
$100,000 annually
Factoring rates start at:
N/A
Loan terms:
N/A
  • Fast application process
  • Offers both types of invoice factoring
  • Knowledgeable and polite team
  • Various financial products
  • Tracks the status of your order on any device

Triumph Business Capital is one of the better-known publicly traded factoring companies. A broad range of industries use its services, including trucking, freight brokers, and government contractors. According to user reviews on the company’s website, Triumph Business Capital has a very helpful and polite team, as well as a fast online application process. The Triumph factoring company supports both small and medium-size businesses. 

Application Process and Funding Time

Triumph factoring is a great option for businesses that don’t always have the luxury of waiting for their clients to pay their bills. Typically, clients can prolong the payment process by up to 90 days or longer. But salaries, rent, and other bills can’t wait that long. That’s why many businesses turn to this fast invoice discounting service. 

The online application requires the following information: your company’s organizational documents, annual report, and an example of the invoices you want to sell. Thanks to the company’s fast and responsive agents, you can expect an answer to your request within one business day. 

But there is one notable downside. Although the company doesn’t have any requirements regarding how long you’ve been in business, Triumph Business Capital will do a credit check. It performs a hard credit pull, which will affect your credit score. 

Terms of Service 

Triumph is among the receivable financing companies that offer both types of invoice factoring: recourse and non-recourse. If you’re not sure which option is best for you, the company’s representatives will be happy to assist you. Generally, non-recourse factoring is a good option if you have a small business that is struggling with unpaid invoices. Non-recourse factoring means higher rates, but it provides instant cash. 

For midsize and large companies, recourse factoring is a smarter option. In case your client doesn’t pay the debt, you need to have sufficient capital to cover it. 
Just like some of the other companies that provide top invoice finance services, Triumph requires that you sell all invoices linked to an individual client. This practice is designed to avoid confusion with payments. 

Invoice Factoring Rates

The company doesn’t display details on its website about the amount you get for your invoices. The rates are calculated based on several factors, including the amount of time it takes your clients to pay. The rates can be flat or vary on a monthly basis.

Final Thoughts

Triumph is one of the best factoring companies for trucking, freight brokers, and government contractors. In addition to invoice factoring, Triumph offers financial services for equipment purchases, insurance, and loans.

+ Show more
Breakout Capital Review
Breakout Capital Review Logo Learn More

On Official Website

Minimum credit score:
N/A
Loan amount:
Up to 1,000,000
Minimum revenue:
N/A
Factoring rates start at:
1.25%
Loan terms:
Up to 2 years
  • No credit score required
  • Responsive customer support
  • Various financial products and tools

Launched in 2015, Breakout Capital is an online lender that specializes in providing financial support to small businesses. According to online reviews, it’s one of the most reputable factoring companies for small businesses. Clients praise Brakeout Capital for its flexible repayment terms as well as its knowledgeable support agents. It holds an impressive BBB rating of A+, while on TrustPilot the company has a score of 9.6/10.  

Application Process and Funding Time

Just like some of the other factoring companies on our list, Breakout Capital enables you to apply directly from the company’s site. You’ll need to provide basic information about your business, including your name, address, email, and the type of business you run. You’ll also be asked about the amount you want to borrow. If you have any questions, you can contact the company’s skilled customer support team. 

One of the reasons why Breakout Capital is among the best-rated factoring companies is its low credit score requirements. You don’t need to have a perfect credit score to use the company’s products. 

Terms of Service 

Breakout Capital has a specific business financial factoring product called Factor Advantage, which works with both short term loans and invoice factoring. It’s a great solution for businesses that aren’t eligible for factoring services at other lenders. Breakout Capital offers factoring loans in advance, even if your invoices aren’t yet factored. 

Factor Advantage is a good solution for businesses that need money instantly to overcome financial difficulties or pay monthly bills. 

Invoice Factoring Rates

This receivables factoring company doesn’t display any figures on its website about the amounts you get for selling your invoices. The company clearly states that loans are customized to fit the needs of each individual client. The same goes for factoring rates. Although the rate starts at 1.25% per month, in reality it varies depending on the client's situation. The loan term cannot be longer than 12 months, and you can choose from daily, weekly, or monthly rates. During this period, your factoring rate can change. 

To calculate your rates, you can also use SmartBox, a comparison tool designed to give you a better understanding of each of the company’s financial products. 

Unlike some of its competitors, this accounts receivable factoring company doesn’t charge penalties if you pay off your debt early. In addition, clients who don’t miss payments and who are able to pay off their debt early can get a discount. 

Final Thoughts 

If you have clients who pay regularly, the company’s Factor Advantage program is a good option. You’ll get fixed repayment terms and a discount if you pay off your debt early.

+ Show more
Paragon Financial Group Review
Paragon Financial Group Review Logo Learn More

On Official Website

Minimum credit score:
N/A
Loan amount:
80 to 90%
Minimum revenue:
$30,000
Factoring rates start at:
1.25%
Loan terms:
12 months
  • Non-recourse lender
  • Accepts businesses with tax problems
  • Can work with existing bank liens

With nearly three decades of experience in the business and an impeccable online reputation, it’s not difficult to understand why Paragon Financial Group is one of the best AR financing companies on the market. It can fund up to 90% of your invoices - with fees starting as low as 1.25% - and approve your request in a day. Furthermore, the lender is a bit less demanding than the competition when it comes to requirements and will gladly take on businesses that can’t get funding elsewhere. Here are the specifics.

Application Process and Funding Time

As is often the case with these companies, you can get approval for invoice factoring within 24 hours of your request. However, after that, it can take another three to 10 days until you actually receive the advance. This is a bit sluggish and can make a world of difference when you’re in need of fast factoring services for small business ventures. But while it lacks urgency, Paragon has other redeeming features.

The application process takes place entirely online through the company’s website. Before you start it, make sure you have all the necessary documents, like accounts receivable and payable aging reports to ensure everything goes smoothly. It’s a good idea to send out a couple of invoices with your signed agreement right at the start to help expedite the process.

Terms of Service

One of the main reasons why Paragon is often listed among the top 10 factoring companies is the lender’s low criteria. There is no minimum credit score or business experience requirement. According to Paragon Financial Group reviews, even users with tax problems or bank liens are welcome. All you need to do is be frank about it during your application. The lender will usually come to an agreement with the bank to subordinate the lien and activate invoice factoring.

The company can fund 80 to 90% of your invoices. The minimum factoring amount is $30,000, while the maximum goes up to $10 million a month. You are under no obligation to factor all of your invoices; you can choose as many as you want. Since Paragon is one of the best non-recourse public factoring companies, you don’t have to worry about unpaid invoices.

Invoice Factoring Rates

The second part of the payment comes after the customers settle their debts. At this point, Paragon takes its cut - anywhere from 1.25 to 2%. While these aren’t the lowest rates in the industry, they’re definitely highly competitive. You can use the company’s invoice factoring calculator to compare rates and get clear estimates of your funds. Factoring company reviews remind you that you might also have to cover various other fees, like diligence, batch, or early termination fees.

Final Thoughts

If you’re looking for relatively cheap factoring companies that will gladly accept even businesses with poor credit, Paragon Financial Group is the right choice for you. You can get up to 90% of funding for your invoices, with fees going up to 2%. Because it’s a non-recourse company, you don’t even have to worry about unpaid invoices - Paragon does all the heavy lifting for you.

+ Show more
altLINE Review
altLINE Review Logo Learn More

On Official Website

Minimum credit score:
N/A
Loan amount:
80-90%
Minimum revenue:
$15,000
Factoring rates start at:
0.75%
Loan terms:
Depends on when your customer pays
  • No credit score requirements
  • Decades of experience
  • Low rates

If your main concern is finding a reliable lender with years of experience and standard industry rates, this one ticks all the boxes. altLINE is a financial department of a well-known Alabama-based bank with decades of experience. As one of the best accounts receivable financing companies, altLINE offers funding up to 90% with fees that go as low as 0.75%. Let’s take a look.

Application Process and Funding Time

The application process is straightforward and quick. Within a few minutes, you can find out what your rates will be and discuss your options further with a loan specialist. If you decide to go through with it, you’ll have to fill out an official application, which is also fairly painless, as altLINE doesn’t require too much documentation. During the process of invoice factoring, no credit check is performed on your business. However, you need to make sure your clients’ credit scores are up to the company’s standards.

Some online lists of the worst factoring companies might consider altLINE solely because of the time it takes to process applications. However, seven days is the absolute maximum you’ll have to wait. In most cases, you’ll get your advance much sooner, especially if you include a couple of invoices with your application. After the initial payment, all other invoices are dealt with in 24 hours.

Terms of Service

While most of the competition will look at your company’s credit score or years in business, altLINE takes a slightly more sensible path. It actually focuses on your customers’ credit scores to determine how reliable they are. Since you can choose which accounts to turn in for invoice factoring by this USA company, make sure you pick the best candidates. altLINE can factor up to 90% of your invoices, which is within the industry standard. The advances range from $15,000 to $5 million, so even smaller businesses can consider this option.

Invoice Factoring Rates

Since this is a federally regulated lender, it’s completely upfront about its rates. You just need to get through the initial check to get all the information; there are no hidden fees or extra charges you’ll have to deal with afterward. Rates start at 0.75% and go up to around 3%. This is lower than what other commercial factoring companies have to offer, but that’s mainly thanks to the fact that altLINE is a recourse factor, so unpaid invoices go straight back to you. Of course, if you’ve taken the precaution of choosing reliable customers in the first place, it will make no difference.

Final Thoughts

Choosing the right lender can be frustrating and risky, so it’s always a good idea to go with reputable companies like altLINE. You get good terms and slightly lower rates because it’s a recourse invoice factoring company. It doesn’t require any specific credit score or experience - just make sure you have reliable customers who will pay on time. 

+ Show more
TCI Business Capital Review
TCI Business Capital Review Logo Learn More

On Official Website

Minimum credit score:
N/A
Loan amount:
90%
Minimum revenue:
$50,000
Factoring rates start at:
N/A
Loan terms:
N/A
  • Three-day funding time
  • Free customer credit checks
  • Fuel card program

TCI Business Capital Inc has been in business for more than 25 years. In that time, the company has managed to leave quite an impression and propel itself to the top of numerous online lists. There’s plenty to love about TCI - quick turnaround time, solid payment terms, and some extra features that help categorize it among the most beloved trucking factoring companies on the market. These are the details.

Application Process and Funding Time

While most other companies in this niche allow you to apply online, TCI Business prefers to keep it traditional. You can fill out a form on the website if you have a specific question, but to get a quote, you’ll need to have a one-on-one phone conversation. That said, the process is extremely fast and efficient, as confirmed by various TCI Business Capital reviews. You can get a quote in about 15 minutes, after which you’ll be asked to provide the necessary documents.

Once you get approved, the first payment arrives within three business days. If you consider the speed of the service and compare it to the competition, it’s no wonder why TCI is often dubbed the best invoice factoring company. After the first invoice, every other gets processed within 24 hours, which is the industry norm.

Terms of Service

Like many other companies on the market, TCI can also cover up to 90% of the invoice value. The minimum amount that can be factored monthly is $50,000, while the maximum goes up to $20 million. This means that the lender prefers to work with midsize and larger companies than with small, up-and-coming businesses.

TCI Business Capital has a special section dedicated to additional features included in the service. Transportation factoring companies like this one sometimes include special deals to attract new clients. In fact, TCI has introduced a fuel card program that gives truckers various discounts and lets them save an average of 0.15 cents per gallon.

Invoice Factoring Rates

One of the biggest complaints users have about this company is the lack of transparency. Even though there’s plenty of useful information on the site, you won’t find even approximations of your rates and fees. Instead, you’re told that there are three types of rates - flat, tiered, and “Prime Plus.” Depending on which one you choose, your business’s track record, and a number of other factors, you’ll get a personalized quote.

Final Thoughts

TCI Business Capital can be rightfully considered a top invoice factoring company. The funding time of three business days is among the lowest in the industry, and extra features definitely help sweeten the deal. The fact that the website isn’t as transparent with its fees as it should be is a serious inconvenience, but not a huge obstacle. Overall, you won’t be making the wrong choice with TCI.

+ Show more
Riviera Finance Review
Riviera Finance Review Logo Learn More

On Official Website

Minimum credit score:
N/A
Loan amount:
Up to 95%
Minimum revenue:
N/A
Factoring rates start at:
2%
Loan terms:
Six months
  • Higher than average loan amount
  • Accepts long-overdue invoices
  • Covers all of USA and Canada

What is a factoring company worth if it won’t accept your overdue invoices and provide you with funds as soon as possible? That seems to be the core idea behind Riviera Finance, a reputable lender with more than 50 years of experience. It will cover up to 95% of the invoiced amount, and since it’s a non-recourse company, you won’t have to worry about your customers’ payment habits. Let’s break it all down for you.

Application Process and Funding Time

Like many of its competitors, this lender offers an easy online application process. While you may get preliminary results within 48 hours, official approval usually takes four to seven days. The best US invoice factoring companies like Riviera need to perform initial invoice verification the first time around, but from that point on they can fund your account in 24 hours. You can check the status of your application at any time using the company’s Riviera Online Account Management (Riviera Finance ROAM) dashboard. In addition to that, you’ll be provided with an account manager who will ensure that everything goes smoothly.

Terms of Service

Riviera Finance can offer you up to 95% of your invoice amount, which is above the industry standard. Of course, to get this impressive percentage, you’ll need to be an ideal candidate, so you might want to lower your expectations. That said, Riviera doesn’t look at your credit score or years in business, nor does it care about delinquency. It is one of the few companies that will gladly accept overdue invoices. 

Interestingly, there is no minimum amount, so this is a great provider of small business factoring invoice services according to numerous Riviera Finance reviews. There is a relatively fair monthly maximum of $2 million, which is good enough even for midsize businesses. In addition to that, the lender requires a minimum commitment of six months for factoring services.

Invoice Factoring Rates

There is no startup fee, as you might expect, but along with its six-month commitment comes a termination fee if you decide to part ways ahead of time. The invoice factoring company rates start at 2% - definitely among the higher rates in the industry. This is connected to the fact that it’s a non-recourse company, meaning you lose the risk but pay higher rates.

Final Thoughts

If you’re on the lookout for reliable Canadian and US invoice factoring companies, you can’t go wrong with Riviera Finance. It is a non-recourse lender that will accept most of the invoices that other companies won’t and provide you with a factoring loan in a decent time frame. This is a perfect opportunity for small businesses that are trying to find their footing in the industry.

+ Show more

What You Should Know Before Applying for Invoice Factoring Services

Many B2B companies that sell goods and services rely on invoice factoring to secure capital. Instead of waiting for up to 90 days to get paid by clients, businesses sell their unpaid invoices to a factoring company. In most cases, businesses get between 75-80% of the invoice value. The money is often used for salaries, new investment opportunities, and other expenses. The factoring company never pays the full invoice amount because there is always a risk that your clients may never settle their debts. The factoring company also charges a fee for its service. 

Although the entire process looks simple, there are some things you should know before using invoice factoring for your small business. 

Invoice factoring vs. invoice financing: Is there a difference?

When looking for quick access to cash, business owners have two options: invoice factoring or invoice financing. 

These services are similar in that you get cash in advance for your unpaid invoices. But there is an important distinction between the two.  

Invoice factoring is a financial transaction, while invoice financing is a type of loan. With the former, you sell your invoices, so the factoring company waits for your clients to pay off their debts. With the latter, you use your invoices as collateral. Once your client pays off the debt, you can pay off the loan. 

What’s best: non-recourse factoring companies or recourse factoring companies?

Most factoring companies offer one of these two types of services: recourse and non-recourse. The difference between them comes down to who pays the invoice in case your customer doesn’t. 

With recourse factoring, you’re responsible if your customer doesn’t pay the debt. This type of factoring is best for businesses that have reliable clients who pay their bills on time. With non-recourse factoring, your factor absorbs the unpaid invoices. This usually means that the factor charges higher fees and takes invoices that might be covered through credit. 

FAQ
How much does a factoring company charge? +

The best factoring companies for a small business charge fees that range between 1% and 6%. The fee depends on numerous factors, including the time your clients need to pay the invoices and the amount owed. 

Is invoice factoring a loan? +

No, invoice factoring is not a loan. It’s a financial transaction where you sell your invoices at a discount. The key advantages of this type of transaction is that you get a lump sum of money instantly, and your factor needs to wait for your clients to pay the debt. 

What are types of factoring? +

According to the best invoice factoring companies reviews, most companies offer recourse factoring. That means you are fully responsible if your clients don’t pay the invoice. With non-recourse factoring, which is rare, the factor absorbs the unpaid invoices. 

Is BlueVine legit? +

BlueVine is a fully legitimate company. It’s been in business since 2014, during which time it has supported more than 125,000 clients with $6.5 billion. According to numerous online reviews, this is one of the most reputable factoring firms. 

Is invoice factoring a good idea? +

Generally, if you have reliable clients that pay regularly, invoice factoring is not a problem. 

In fact, factoring invoices can be beneficial for your business. Since invoice factoring is not a loan, you are not required to put forward any collateral, and unlike with other financial services, you don’t need to have an excellent credit score. Invoice factoring companies are also ready to give you flexible repayment terms if there isn’t any real risk of your clients not paying.