Fortunly's Guide
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Best Invoice Factoring Companies for 2024

Written By
G. Dautovic
Updated
February 19,2024
Some or all of the products/services listed on this page are from our affiliate partners from which we receive commissions. This, however, does not influence the evaluations in our reviews. Learn more by reading our Advertiser Disclosure.

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. 

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Top-Rated Invoice Factoring Companies for March 2024

Best for: small and mid-size businesses

eCapital

eCapital Logo
OVERVIEW

eCapital has a long history of providing factoring services to small and mid-sized businesses. It offers reliable, uninterrupted funding with high advance rates. ECapital reviews praise its strategic partnerships and proprietary technology that provides the clients with more money quickly, and more control over their capital. ECapital raises up to 90% of the customer’s invoice value, with repayment terms of up to 90 days. In addition, it provides cash flow solutions designed for most types of business funding. Read Review

  • Initial funding within 48 hours
  • Same-day funding for onboarded clients
  • Up to 100% advance rates on invoices
Learn More
On Official Website
Minimum credit score:
N/A
Loan amount:
Up to $30 million for small businesses
Minimum time in business:
N/A
Minimum revenue:
N/A
Factoring rates start at:
1%
Loan terms:
Up to 90 days
Funding time:
Same-day to 48 hours
Best for: trucking and freight factoring

Triumph Business Capital

Triumph Business Capital Logo
OVERVIEW

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 Official 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: low factoring rates

Gateway Commercial Finance

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Gateway Commercial Finance Logo
OVERVIEW

Gateway Commercial Finance offers a compelling choice for businesses seeking flexible, fast, and transparent invoice factoring solutions. With competitive rates, a broad spectrum of financial services, and a customer-first philosophy, Gateway stands as a strategic partner for businesses aiming to navigate financial challenges and capitalize on growth opportunities. Read Review

  • Rapid funding time
  • Unique factoring needs
  • Advanced A/R management platform
  • High advance amounts
Learn More
On Official Website
MINIMUM CREDIT SCORE:
N/A
LOAN AMOUNT:
Up to $10 million
MINIMUM TIME IN BUSINESS:
N/A
MINIMUM REVENUE:
$50,000
FACTORING RATES START AT:
0.5%
LOAN TERMS:
30 to 120 day eligibility
FUNDING TIME:
From 3 days
Best for: Small businesses

Breakout Capital

Breakout Capital Logo
OVERVIEW

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 Official 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
OVERVIEW

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 Official 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: Reliable lending

altLINE

altLINE Logo
OVERVIEW

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 Official 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
OVERVIEW

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 Official 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
OVERVIEW

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 Official 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
Best for: Excellent multi-purpose app

RTS Financial

RTS Financial Logo
OVERVIEW

This isn’t exactly the best factoring company for trucking and freight businesses due to its lack of transparency when it comes to pricing. But aside from this little inconvenience, there are so many other things to like about this company. For instance, not only does it help you with your day-to-day cash flow needs, but it also provides you with an exceptional desktop and mobile phone app that you can use for any crucial trucking-related tasks. Read Review

  • Advance payments of up to 97%
  • No ACH or invoice-uploading fees
  • Excellent multi-purpose app
Learn More
On Official Website
Minimum credit score:
N/A
Loan amount:
Up to 97%
Minimum time in business:
N/A
Minimum revenue:
N/A
Factoring rates start at:
N/A
Loan terms:
N/A
Funding time:
24 hours
Best for: Funding the full value of invoices

Fundbox

Fundbox Logo
OVERVIEW

If none of the business factoring services that we’ve listed here seem like the right fit for you, perhaps you should consider invoice financing. This is a business funding solution that’s offered by Fundbox and doesn’t involve selling your accounts receivable. Those who wish to have access to a line of credit with fixed fees and no early payment penalties should definitely check out this company. Read Review

  • Funds the full value of invoices
  • No prepayment penalties
  • Flat fees
Learn More
On Official Website
Minimum credit score:
600
Loan amount:
100%
Minimum time in business:
6+ months
Minimum revenue:
$100,000
Factoring rates start at:
N/A
Loan terms:
12 and 24 weeks
Funding time:
24 hours
Quick Breakdown

Best Invoice Factoring Companies - Our Picks:

  • eCapital - Tailored toward small and mid-size businesses

  • Triumph Business Capital - Recourse and non-recourse factoring
  • Gateway Commercial Finance - Low factoring rates

  • Breakout Capital - No penalties for paying off debt early
  • Nav - Various financial products
  • altLINE - Fees as low as 0.75%
  • TCI Business Capital - Three-day funding time
  • Riviera Finance - Accepts long-overdue invoices
  • RTS Financial - Excellent multi-purpose app
  • Fundbox - Funds the full value of invoices

Detailed Reviews of Invoice Factoring Companies

eCapital Review

eCapital Review Logo Learn More

On Official Website

Loan amount:
Up to $30 million
Minimum credit score:
N/A
Factoring rates start at:
1%
Loan terms:
Up to 90 days
  • Non-recourse and recourse factoring agreements
  • Low factoring rates
  • Solutions tailored for transportation and staffing companies

eCapital is a factoring company focused on providing the transportation and staffing industries with access to fast funds. ECapital has thousands of clients across the US and holds an A rating from BBB. It also has an excellent 4.6 score on Trustpilot based on customer reviews. In short, eCapital is the perfect place for business owners who need factoring services and appreciate excellent customer support.

Application Process and Funding Time

Applying for this online invoice factoring platform is simple: You’ll need to fill out the website’s secure online form using your company information and funding needs. Applicants receive a written proposal outlining the terms and rates; if the proposal suits you, the team behind eCapital will schedule onboarding.

Once the invoices you wish to factor are verified, the money is wired to your account. The funding time is among the fastest in the industry, usually within 24 hours, although first-time users will probably have to wait up to 48 hours. You can get in touch with the support team to get more information about the eCapital factoring process.

Terms of Service

The company doesn’t have a minimum factoring amount, and the most you can get for your business invoices is $30 million. ECapital will fund up to 90% of your invoice value - something only top-notch companies in this niche provide.

The best thing about eCapital is that it offers two types of factoring agreements: Non-recourse and recourse. With a non-recourse factoring arrangement, you are not liable for unpaid invoices if the debtor company becomes insolvent; instead, eCapital will cover all expenses. However, with a recourse agreement, you are always responsible for any unpaid balances, regardless of whether the reason for missed payments was under your control or not.

Invoice Factoring Rates

ECapital offers low factoring rates compared to other factoring companies. ECapital calculates rates based on several factors, including risk, volume, time, and advance rate. You can call the company’s support team to check your rate and get a free quote.

Generally, eCapital rates start as low as 1%, which is significantly lower than the industry standard. Regarding repayment terms, the company offers up to 90 days for you to return the factoring funds.

Final Thoughts

Having financed over 12 million invoices, it is safe to say that eCapital is a secure place to go if you need invoice factoring services. The company’s factoring is a great solution for a startup, a company in growth mode, or one recovering from a tough year.

The main perks at eCapital include almost instantaneous and flexible funding. It also boasts low repayment rates, starting at 1%, and superb customer support to guide you through the process. Plus, it also gives you full control of capital management to help you access and move funds in alignment with your needs.

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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

Gateway Commercial Finance Review

Gateway Commercial Finance Review Logo Learn More

On Official Website

Loan amount:
Up to $10 million
Minimum credit score:
N/A
Factoring rates start at:
0.5%
Loan terms:
Up to 120 days
  • Impressive customer retention
  • Offers high advances
  • Provides personalized consulting

Gateway Commercial Finance has solidified its reputation as a leading invoice factoring company, recognized for its over 16 years of dedicated service and inclusion in the INC 500/5000 list for five consecutive years.

Application Process and Funding Time

The company stands out from the competition with its streamlined and efficient application process, designed to address the urgent financial needs of small to medium-sized businesses (SMBs).

Businesses can expect an approval time generally within an hour, a testament to Gateway's commitment to fast and transparent decision-making. This efficiency is facilitated by direct access to decision-makers, eliminating the bureaucracy commonly associated with financial institutions.

Once approved, the funding time is rather quick, with clients able to access initial funds from 3 business days of initiating the process.

This rapid turnaround is particularly beneficial for businesses in need of immediate working capital to maintain operations, invest in growth opportunities, or manage cash flow effectively.

Terms of Service

Gateway's terms of service are flexible, catering to a wide range of business needs with loan terms ranging from 30 to 120 days.

The company can accommodate loan amounts up to $10 million.

Invoice Factoring Rates

One of Gateway Commercial Finance's most competitive features is its low factoring rates, starting at an industry-low of 0.5%.

These rates are among the most attractive in the market, ensuring businesses can access the cash flow they need without significant cost burdens.

The company provides transparent information about these rates, along with flexible agreements that include both recourse and non-recourse factoring options, allowing businesses to choose the most suitable terms for their financial situation.

Final Thoughts

Gateway Commercial Finance distinguishes itself not only through its financial offerings but also through its unparalleled customer service and industry expertise. 

The company's direct approach, providing clients with immediate access to decision-makers, streamlines the application and funding processes, ensuring businesses can quickly receive the support they need.

+ Show more
Read Full Review

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

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.

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RTS Financial Review

RTS Financial Review Logo Learn More

On Official Website

Minimum credit score:
N/A
Loan amount:
Up to 97%
Minimum revenue:
N/A
Factoring rates start at:
N/A
Loan terms:
N/A
  • Advance payments of up to 97%
  • No ACH or invoice-uploading fees
  • Excellent multi-purpose app

RTS Financial is an invoice factoring service primarily focused on the freight and trucking industry. However, it welcomes customers from the oil, textile, manufacturing, distribution, and staffing industries as well. The company has been offering working capital solutions since 1995, and over the years, it’s only gotten better at it.

Application Process and Funding Time

To become an RTS Financial customer, you’ll first need to fill out and submit an online contact form. After that, a representative will get in touch with you and complete your application over the phone. Be prepared to answer any personal and business-related questions, such as details about the company’s owners and trucks. Once your request for business invoice factoring has been reviewed, you’ll again be contacted by a representative to go over the options that you qualify for. If the entire process goes well and you get approved, expect to get your funds within 24 hours. 

Thanks to the company’s ProTransport mobile and web app, you’ll be able to take care of all your factoring needs as well as many other tasks such as accounting, dispatching, reporting, and driver communication. 

Terms of Service

RTS Financial works with both young and seasoned businesses, which means that it’s flexible with credit scores and the time that its applicants have been in business. The amount of funding that you’ll receive from this factoring company for trucking is actually based on your customer’s credit and not your business’s credit or history.  

Invoice Factoring Rates

One of the things that impressed us the most about RTS Financial is that their funding levels are scalable, which means they’ll grow along with your business. It offers a maximum advance amount of up to 97% of the total invoice value. You also won’t need to worry about any ACH or invoice-uploading fees. 

Unfortunately, there’s not much more that we can tell you about RTS Financial’s pricing since this trucking and freight factoring company discloses details about its fees and rates only after you’ve applied for its services. On the bright side, RTS Financial has a fuel card program. If you decide to take advantage of it, you could save 25¢ per gallon at more than 2000 gas stations, including Speedway, Pilot Flying J, S, and Casey's.

Final Thoughts

Aside from providing excellent cash flow assistance, RTS Financial grants you access to its first-class software, useful fuel card program as well as multiple other services. That being said, we’ve reviewed some factoring companies for trucking that are more transparent about their pricing and have far simpler application processes.

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Fundbox Review

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On Official Website

Minimum credit score:
600
Loan amount:
100%
Minimum revenue:
$100,000
Factoring rates start at:
N/A
Loan terms:
12 and 24 weeks
  • Funds the full value of invoices
  • No prepayment penalties
  • Flat fees

Fundbox is yet another top business funding solution. However, the services that you’ll find at this company are a little different than the ones we’ve reviewed thus far. Namely, Fundbox offers invoice financing and not factoring. Receivables financing is a process through which you receive a short-term loan based on what your customers owe to your business.

Application Process and Funding Time

Applying to Fundbox is a simple process. There are only two steps, and it’s all done online. Once you submit some basic information about your company, you’ll need to connect your bank account as well as your accounting software to your Fundbox account, and that’s it. If all goes well, your accounts receivable financing loan might get approved within a single day.

To top it all off, Fundbox lets you request funds any time you want. What’s more, it delivers them to you the very next business day.

Terms of Service

With Fundbox, you get to pick the invoice against which you want to borrow. You also have the option to choose between a 12 or 24-week repayment plan. As you make your payments, the amount available to you will be renewed. The system is very similar to how credit cards work, which is a suitable form of invoice financing for a small business.

Invoice Factoring Rates

The weekly fees that Fundbox charges are always the same. You can expect an interest rate of around 4.66% for a 12-week term and 8.99% for a 24-week term. However, customers that are able to surpass the minimum qualification requirements may get an even better deal. 

Namely, to get approved at Fundbox, your business has to be based in the US and make $100,000 in revenue or more. On top of that, your accounting software must contain at least two months of invoicing history, you need to have an open business checking account, and your company needs to be at least six months old when you submit your application.

Unlike many other accounts receivable financing companies that we’ve looked into, Fundbox won’t penalize you for repaying your debt early. In fact, it will actually reward you by waiving all your remaining fees.

Final Thoughts

Fundbox’s invoice financing enables you to get the cash you need when you need it. Although it may sound similar to factoring, it has one significant advantage: once you’re done paying back your debt to Fundbox, you’ll also be able to collect the outstanding money owed by your clients. Factoring may still be the better option for some, but when it comes to small businesses that are just starting out, this is the solution that we’d recommend.

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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. 

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 credit, 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. 

 

FAQ

How much does a factoring company charge?

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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?

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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?

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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 invoice factoring a good idea?

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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.