November 28, 2022

Best Invoice Factoring Companies

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So, you've decided to sell your invoices? A factoring company can help with that. Read on to find the best one suited for your business.

Not all factoring companies offer great service. Some of them could be frustrating to work with. Others will have hidden fees and can unexpectedly cost your business money.

These unlikely situations can negatively affect your business, especially with long-term contracts.

But there are those top invoice factoring companies that can help you with your cash flow smoothly. Keep reading to learn more.

What is Invoice Factoring?

Invoice factoring is a cash advance you can get by selling your unpaid invoices to factoring companies. It's typically done to bridge cash flow gaps.

That said, you no longer own the invoices once sold. The factoring company will be responsible for collecting payments from your customers.

Invoice factoring companies have varying cash advance amounts, factoring fees, industries served, and requirements. They can also offer recourse or non-recourse factoring agreements.

Payment Terms for Invoice Factoring
You might offer your customers a net 30-60-90 payment plan for invoices where they pay parts of the invoice after 30, 60, and 90 days. This affects the fees of factoring companies. When selling your invoice, the longer the repayment terms, the higher the fees.

Recourse vs. Non-recourse Factoring Agreement
A recourse factoring agreement means you have to pay back the factoring company if your client or customer fails to pay the invoice. This is riskier for business owners.

With a non-recourse agreement, the factoring company will assume responsibility for the loss. Because of the risk, they typically have higher fees.

Some factoring companies offer both types of agreements.

Invoice Factoring vs. Invoice Financing
The difference between the two is in the ownership of the invoice. With invoice factoring, you sell your invoices. This makes the factoring company responsible for payment collection. With invoice financing, you're borrowing money using your invoices as collateral. This makes you, as a business, still responsible for collecting client payments.

7 Best Invoice Factoring Companies

Not all factoring companies are the same. Some are more trustworthy than others. And each will have its own best features.

Let's look at the best ones you can find.

1. eCapital: Best for a wide range of factoring selections

eCapital is an invoice factoring company focusing on small to mid-sized businesses. They offer factoring solutions to over 80 industries, including transportation, staffing, wellness, and healthcare.

It offers competitive and flexible rates depending on your invoice amount. You can contact them for a free quote. Non-recourse and recourse factoring agreements are both available.

It's one of the most trusted companies you can find, given that they've been in business for over 25 years.

Minimum Revenue$30,000 monthly
Minimum FICO ScoreUnlisted
Funding AmountUp to $30 million
Factoring Discount Fee0.9% to 2.5%
Advance Rate80% to 90%
Processing TimeWithin 24 hours
Payment TermsUp to 90 days

Why We Like It
eCapital tops the selection for a wide range of services. It's a no-brainer, given that they work with over 80 industries. Unlike other factoring companies focused on specific or limited niches, it's accessible to most small businesses.


  • 24/7 access to your cash through eCapital Connect
  • Online portal available for submitting invoices
  • No minimum factoring amount needed
  • No hidden fees
  • "A" BBB rating
  • Excellent customer reviews (4.6 stars on Trustpilot)


  • Rates and fees could be raised depending on the agreement.

Aside from invoice factoring, eCapital offers payroll funding, lines of credit, and asset-based lending suitable for small businesses.

2. altLINE: Best for affordable fees

altLINE is one of the trusted factoring companies because it is also a bank. It means they are the direct source of funds instead of being a middleman.

Unlike some factoring companies, they focus on the credit scores of your clients - not yours. And with the range of their cash advance, they can be accessible for small businesses.

They work with many industries including staffing, distribution, manufacturing, consulting, and food and beverage.

Minimum RevenueUnlisted
Minimum FICO ScoreUnlisted
Funding AmountUnlisted
Factoring Discount Fee0.5% to 3% for the first 30 days
Advance RateUp to 90%
Processing TimeUp to 4 days (for initial approval); other invoices are paid within 24 hours
Payment TermsUnlisted

Why We Like It
Unlike most competitors, altLINE offers a factoring fee starting at 0.5%. That's one of the lowest you can get, making it more affordable. It also reaches a maximum of 3%, which is lower than the standard maximum of 5% for the first 30 days.

Basically, their range is below the average for factoring companies.

However, there will be an increase in fee every 15 days (maxed at 5%) after the first 30 days.


  • No hidden fees
  • "A+" BBB rating
  • Low factoring fees are possible
  • No credit checks are performed on your business
  • You're not required to factor all of your invoices
  • Excellent customer service (4.7 rating on Trustpilot)


  • It can take time to get approved
  • Expedited funding will cost an additional 1%
  • Doesn't work with trucking, software, logistics, and transportation industries

Independent Factoring Companies vs. Bank Factoring Companies
Independent factoring companies need a third party to fund invoices. On the other hand, the bank has its own funds. It lets them offer competitive rates compared to independent companies.

Some banks will also provide an easy transition to a bank loan or offer additional services such as credit protection.

3. FundThrough: Best for small businesses

FundThrough is a popular invoice factoring platform that works with many industries. But it's very vocal about helping small businesses in particular.

Its Velocity Invoice Factoring program offers spot factoring so you can choose which invoices to factor in.

Given its online platform, it offers a convenient and quick application process. It's also a partner of Bluevine, a popular online business checking account and lender for small business loans.

Velocity Invoice Factoring

Minimum Revenue$15,000
Minimum FICO ScoreUnlisted
Funding Amount$15,000 to $10 million
Factoring Discount Fee2.5% to 5% for the first 60 days
Advance RateUp to 100%
Processing TimeWithin 24 hours
Payment TermsCan go longer than 61 days

Why We Like It
FundThrough offers a wide range of funding, which means it's accessible for small businesses or well-established larger ones.

Because it integrates with various accounting software, uploading your invoices is easier. Not to mention, cash advances go up to 100% of your invoice amount.


  • Integrates with various accounting and invoicing apps
  • Includes an account management platform
  • Early repayment options
  • Accepts invoices as old as 90 days
  • No annual fees
  • "A+" BBB rating
  • Excellent customer service (4.7 rating on Google Reviews)


  • Flat upfront fee required
  • Limited software or integration partners
  • Higher factoring fees than competitors (up to 7.5% for over 61 days)[1][2]

Spot Factoring vs. Whole Ledger Factoring
Some factoring companies require businesses to sell all their invoices. It's called whole ledger factoring. It's typically done to avoid payment confusion from your customers.

On the other hand, you have the freedom to choose which invoices to factor in with spot factoring. You can check with your chosen company which service they offer.

4. Breakout Capital: Best for flexible payments

Breakout Capital is a lender for small businesses. Aside from invoice factoring, they also offer lines of credit, SBA, and equipment loans.

What's unique about the company is that they prioritize educating businesses regarding the best funding for their needs.

If they find that different funding is suitable for you, they can hook you up with the right one, even if it means connecting you with a different lender.

Minimum Revenue$10,000
Minimum FICO Score600
Funding AmountUp to $1 million
Factoring Discount FeeStarts at 1.25%
Advance RateUnlisted
Processing TimeUnlisted
Repayment DateUp to 24 months

Why We Like It
For invoice factoring, Breakout Capital offers FactorAdvantage. It's a combination of invoice factoring and short-term loan. Because it's technically a loan, it's different from typical invoice factoring.

You're not limited in terms of repayment. Unlike other factoring companies, you won't get charged if you pay your debt early. In fact, paying your debt early and regularly can also get you discounts.

You can also choose to pay daily, weekly, or monthly.


  • Online application available
  • "A+" BBB rating
  • Excellent customer service (4.3 rating on Trustpilot)


  • Higher rates than competitors
  • One-time origination fee (1% to 5%)[3]
  • You need to have been in business for 1 year

5. TCI Business Capital: Best for older invoices

TCI Business Capital is a factoring company that caters to the trucking, telecom, oilfield, and manufacturing industries.

Although it can cater to small businesses, the requirements suggest that it's best suited for mid-sized to more established ones.

You'll need to contact them directly to apply. Unlike other factoring companies, you won't be locked into a 1-year contract. Their factoring contracts are month-to-month.

Minimum Revenue$50,000 (monthly invoices)
Minimum FICO ScoreUnlisted
Funding Amount$50,000 to $10 million
Factoring Discount FeeUnlisted
Advance Rate70% to 90%
Processing TimeUp to 3 business days (for initial approval); other invoices are paid within 24 hours
Payment TermsUp to 90 days

Why We Like It
Ideally, invoices should be paid by customers within 30 days. But if they don't, TCI Business Capital allows you to factor invoices up to 45 days old.[4]

You can also change discount rates monthly. The higher volume of invoices you have, the better rates and fees you could get.


  • Free customer credit checks
  • Fuel card program available
  • Expedited funding available
  • Serves an extensive list of industries
  • Dedicated accounts receivable specialists
  • Free quote within 15 minutes


  • High minimum revenue requirement
  • Lower advance rates compared to competitors
  • Limited services and features compared to competitors

Pro tip: You can use their Invoice Factoring Calculator to compute your overall costs. You just need your monthly invoice sales volume, an advance rate, and payment terms.

Keep in mind that this is just an overview of potential figures. It's best to communicate with them directly regarding the costs of factoring.

6. Riviera Finance: Best for quick funding

Riviera Finance is a non-recourse factoring company that serves U.S. and Canadian businesses. It has a lot of physical branches you can visit throughout both countries.

It won't check your credit scores, years in the business, or whether your company has an unlikely background. Like some of its competitors, it cares about the credit scores of your customers.

They also don't have long-term contracts, so you don't get locked in. And they accept long and overdue invoices.

Minimum RevenueUnlisted
Minimum FICO ScoreN/A
Funding AmountUp to $2 million
Factoring Discount FeeStarts at 2%
Advance RateUp to 95%
Processing TimeUp to 7 days (for initial approval); other invoices are paid within 24 hours
Payment TermsUp to 60 days

Why We Like It
You can easily apply for quick funding since there are no background checks on your credit scores or years in the business. You also don't need to pay startup fees making it more accessible.

Although initial verification could take some time, you can still get fast cash (within 24 hours) for the rest of your invoices.


  • No startup fees or setup fees
  • Accessible for startup companies
  • Serves a wide range of industry
  • Fewer risks for business owners (due to non-recourse agreements)
  • Includes an account management system called ROAM


  • Higher rates than competitors
  • The standard term is six months[5] (instead of month-to-month)

Riviera finance works with various industries. This includes transportation, staffing, energy, oil, utility, telecom, and the security industry.

7. RTS Financial: Best for the trucking industry

RTS Financial is a factoring company focused on the trucking and freight industry. But they can also work with other industries such as:

  • Oil
  • Textile
  • Manufacturing
  • Distribution
  • Staffing

Through their RTS Pro mobile app, you can access their factoring services, fuel discounts, trucking software, and broker credit ratings. This makes it an all-in-one and convenient option.

Their trucking software is called ProTransport. It's handy for your daily operations.

Minimum RevenueN/A
Minimum FICO ScoreN/A
Funding AmountUnlisted
Factoring Discount FeeUnlisted
Advance RateUp to 97%
Processing TimeWithin 24 hours
Payment TermsUnlisted

Why We Like It
With RTS Financial, you could garner significant savings through their fuel card program. You can save about 25ยข per gallon from over 2,000 fuel stations, including Pilot Flying J, Casey's, Sapp Bros., and more.[6]

Their mobile app and trucking software also cater to the daily operations of a trucking business. You can access the data you need on the go.


  • No ACH or invoice-uploading fees
  • Competitive advance rates
  • Well-rated mobile and web app
  • Fuel card program available
  • Discounts for U.S. veterans


  • Not BBB accredited
  • Negative feedback regarding customer service (as of Trustpilot and BBB)
  • No online application (but you can start through their form)

RTS Financial specializes in the trucking industry. Together with RTS Carrier Services, they are brands under the Shamrock Trading Corporation. RTS Carrier Services is a provider of fuel and maintenance savings programs also for trucking businesses. They're a family of brands focused on supporting trucking companies.

How To Choose Best Invoice Factoring Companies

The best invoice factoring companies are fast, secure, affordable, and with excellent service. With this in mind, consider the following:

  • Processing time. Factoring companies typically process invoices within 24 hours after you get verified. It's the verification process that often takes 3-7 days. When choosing a company, their processing time should fit your schedule.

  • Factoring rate and additional fees. The factoring or discount rate is the cost of invoice factoring. Different companies will have daily or weekly rates, so it's best to clarify the terms.

    Let's say you have $10,000 worth of invoices. Your agreement includes a 3% factoring rate on a net 30-day payment. If the invoices aren't paid by day 30, it'll cost you $300.

    The factoring fee is calculated by multiplying the invoice value by the factoring rate: ($10,000 x 0.03 (3%) = $300)

    Some lenders will ask for additional fees such as origination, monthly minimum, cancellation, or maintenance fees.

    Flat vs. Tiered Factoring Rates
    You pay the same percentage for each invoice with a flat factoring rate. It's more convenient because you know how much you pay each time. You can also plan your payments.

    A tiered factoring rate, however, can be more beneficial. The percentage you pay depends on how quickly your clients pay the invoice - the faster the payment, the lower the fees.

  • Funding amount. There's a limit to how much cash companies can advance. The minimum is usually their required monthly invoice revenue.

  • Advanced rates. This is the percentage of invoice amount they can advance. Generally, it's 80% to 90%. But some companies go lower and higher than that. Other companies can advance up to 100% - meaning there are no reserves.

  • Flexibility. Some factoring companies tie you to long-term contracts. At the same time, there are those with month-to-month agreements. Short-term contracts may provide more room for flexibility regarding rates or fees.

    Keep in mind: Factoring companies will also have their requirements. The most suitable factor for your business will still have to be one whose requirements you can meet.

  • Industry specialization. Some companies have specialists in the industry they serve. This can make their customer service smoother. That said, there are factoring companies limiting their services to specific industries.

  • Ratings and Reviews. The best witnesses are the customers themselves. You can check out BBB, Trustpilot, Google Reviews, or other review websites for the experiences of other business owners.

How We Came Up with The List (Methodology)

Because factoring companies offer the same services, we considered where they differ. We reviewed their requirements, rates and fees, processing time, and repayment terms.

We also looked at the industries they specialize in and the added features of working with them. For example, some of them have mobile apps and fuel card programs.

Then we researched if they had positive reviews. We considered the companies best with customer service - those who communicate well and provide real solutions to their client's problems.

By comparing these details, we were able to find their unique qualities (i.e., best for affordable fees, flexible payments, etc.)

Some factoring companies are more transparent than others. We've compiled the details available to make it easier for you to decide.


How much does factoring invoices cost?
Typically, invoice factoring costs 0.5% to 5% of your invoice amount. The percentage is the factor rate based on your customer's creditworthiness, your invoices, advanced rate, and terms. Some factors will charge additional fees such as origination fees.

Is a factoring company worth it?
Invoice factoring with a factoring company can be worth it as it can bridge cash flow gaps. You could use it if your business is seasonal or if you suddenly gained unexpected expenses. But opting for it long-term could hurt your profitability.

Is invoice factoring a loan?
Invoice factoring is not a loan but a cash advance. It won't be counted as debt on your balance sheet. You're selling your invoices with it. It's unlike invoice financing, where you borrow money using outstanding invoices as collateral.

Can I switch factoring companies?
Yes, you can change factoring companies, especially if you're not happy with the service of your current factor. But there may be fees if you switch before the end of a term. Take note of possible guaranteed, buyout, and early termination fees.

How do you get out of a factoring contract?
Your business can terminate the factoring agreement at the end of a term. But factoring companies typically require 60 to 90 days prior notice. If you need to terminate the contract at a different time, there will likely be an early termination fee.

The Bottom Line

The best invoice factoring company suited for your business depends on your needs. Many of them that are top performing specialize in specific industries.

Requirements depend on your invoices. Funding also ranges from thousands to millions. This gives enough room to sell invoices, from small businesses to large and established companies.

The best will likely offer lower factoring fees, higher advanced rates, and quick processing time. Be sure to check for higher ratings and good reviews as well.


  1. ^ FundThrough. FAQ: What are the typical rates for Velocity Invoice Factoring?, Retrieved 11/9/22
  2. ^ FundThrough. How FundThrough Works, Retrieved 11/9/22
  3. ^ Breakout Capital. Business Loans, Retrieved 11/9/22
  4. ^ TCI Business Capital. Invoice Factoring FAQs: Can I Factor Past Due Invoices?, Retrieved 11/9/22
  5. ^ Riviera Finance. How Long Do I Have To Commit To Factoring My Invoices?, Retrieved 11/9/22
  6. ^ RTS Financial Service. Fuel Card Program, Retrieved 11/9/22

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