9
Best Factoring Companies Of 2026
featured Offers
Featured Partner Offers
1
OnDeck
$5,000 to $250,000
Varies by loan
625
2
National Funding
$5,000 to $500,000
Buy rates start at 1.11%
600
3
BusinessLoans.com
$5,000 to $3 million
Varies by product
550
Compare the Best Factoring Companies
| COMPANY | FORBES ADVISOR RATING | ADVANCE RATE | FINANCING AMOUNTS | LEARN MORE |
|---|---|---|---|---|
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100%
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$500 to $10 million
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Up to 95%
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$5,000 to $2 million
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Up to 97%
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Contact for quote
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Up to 90%
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Contact for quote
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Up to 100%
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Contact for quote
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60% to 90%
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$50,000 to $10 million
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Best Factoring Companies: A Closer Look
FundThrough
Best Overall Factoring Company
FundThrough
Advance rate
100%
Financing amounts
$500 to $10 million
APR
Fees start at 2.75%
100%
$500 to $10 million
Fees start at 2.75%
FundThrough offers invoice factoring without a credit check. Loans can extend up to $10 million, and the lender offers funding speeds that reportedly are 97% faster than other invoice factoring companies. Factoring rates range from 2.5% to 5% and there are no additional financing fees. That said, borrowers may encounter additional fees for early invoice payments and same-day funding.
- Funding speeds 97% faster than competitors
- Offers next-day funding
- No financing fees
- Fees apply for early invoice payments
- Invoices must be less than 90 days old to qualify
- Same-day funding requires an additional fee
Eligibility: Rather than requiring a credit check to determine eligibility, FundThrough reviews the applicant’s business bank account and accounting software to evaluate cash flow. This information also informs the funding limit a borrower qualifies for. Invoices must be less than 90 days old to be eligible.
Turnaround time: FundThrough offers next-day funding. However, borrowers can pay an additional fee for same-day funding.
Riviera Finance
Best for In-person Factoring
Riviera Finance
Advance rate
Up to 95%
Financing amounts
$5,000 to $2 million
APR
Not disclosed
Up to 95%
$5,000 to $2 million
Not disclosed
For borrowers who prefer an in-person factoring option, Riviera Finance works with more than 25 invoice factoring companies across the U.S. and Canada. Online factoring services are available to clients in all 50 states, but businesses near a brick-and-mortar location can visit a branch in person.
Factoring is available for up to $2 million and the standard term is six months. Borrowers can manage their accounts online and each customer is paired with an account executive who can answer questions about the factoring process.
- Offers local service in the U.S. and Canada
- No start-up fees
- Factoring terms are flexible
- Application and approval can take several days
- Factoring fees require negotiation
Eligibility: Businesses in a wide range of industries are eligible for factoring through Riviera. It also works with both startups and more established companies. However, a business is not eligible if it sells its products on terms longer than 60 days.
Turnaround time: Account approval and verification take 24 to 48 hours, but may be lengthier. Riviera Finance funds are generally disbursed within 24 hours after invoice submission and verification.
RTS Financial
Best for Trucking Companies
RTS Financial
Advance rate
Up to 97%
Financing amounts
Contact for quote
APR
Not disclosed
Up to 97%
Contact for quote
Not disclosed
RTS Financial is a trucking factoring company that also offers integrated fuel discounts and tracking software. Advance rates extend up to 97%, and the platform offers same-day funding with no hidden fees. That said, businesses must contact RTS Financial directly to obtain factoring quotes with rates and available amounts.
In addition to financial services, clients can take advantage of the company’s loyalty rewards program and competitive pricing and fuel savings at over 750 locations across the Pilot Flying J Travel Center and One9 Fuel networks.
- No ACH fees or invoice-uploading fees
- Mobile and web app for uploading invoices and account management
- Funding available within 24 hours
- Only serves trucking companies
- Website is vague and does not provide service details
- Has several negative customer reviews
Eligibility: RTS reportedly does not impose any specific revenue requirements or other qualification requirements. However, the website is vague and does not provide much information about how borrowers can qualify for its factoring services.
Turnaround time: Open invoices factored through RTS Financial are funded within 24 hours.
altLINE
Best for Large Invoice Factoring
altLINE
Advance rate
Up to 90%
Financing amounts
Contact for quote
APR
Rates start at 0.50%
Up to 90%
Contact for quote
Rates start at 0.50%
altLINE is an invoice factoring and A/R financing platform that’s backed by The Southern Bank Company. Among the largest factoring companies, it has factored more than $800 million in invoices and has been operating since 1936. altLINE finances up to 90% of invoice values and charges a fee typically from 0.5% to 5%.
- Discount rates start at 0.50%
- Serves businesses in a wide range of industries
- Also offers A/R financing
- Origination, wire transfer and fast funding fees may apply
- Does not use credit scores for primary qualification requirements
- Funding speeds may be slower than competitors
Eligibility: Companies qualify for factoring through altLINE based on their gross monthly sales minimum and other requirements. altLINE reviews the relevant invoices, as well as records of client creditworthiness, an application, an accounts receivable aging report, a business bank account, a tax ID number and personal identification.
Turnaround time: altLINE provides a response within 24 hours of submitting a quote request. Funding is usually available within 48 hours.
Triumph Business Capital
Best for Freight Brokers
Triumph Business Capital
Advance rate
Up to 100%
Financing amounts
Contact for quote
APR
Not disclosed
Up to 100%
Contact for quote
Not disclosed
Triumph Business Capital offers invoice factoring for freight brokers and a range of other trucking companies, including everything from owner-operators and mid-sized fleets to larger operations. Advance rates are available up to 100%, but borrowers must contact Triumph to receive a quote for discount rates and factoring amounts.
- Advance rates available up to 100%
- Offers a fuel discount program
- Services for freight brokers and fleets of various sizes
- Does not publish discount rates
- Does not publish qualification requirements
- Charges origination fees
Eligibility: Triumph’s exact qualification requirements, including revenue requirements, are not published online. However, Triumph does indicate that eligibility determinations are largely based on the creditworthiness of the business’ clients.
Turnaround time: Applications are usually processed within 24 hours and the lender offers funding as soon as the same day.
Scale Funding
Best for Flexible Rates
Scale Funding
Advance rate
80% to 90%
Financing amounts
$50,000 to $10 million
APR
Not disclosed
80% to 90%
$50,000 to $10 million
Not disclosed
Scale Funding (formerly TCI Business Capital) offers invoice factoring to a range of small and midsize companies. The company shares that its underwriting guidelines are straightforward and customers typically receive quotes within 15 minutes. The company stands out because of its flexible contracts that can change from month to month.
- Rates can be updated from month to month
- Offers long-term invoice factoring
- Customer support receives positive reviews
- Does not publish qualification requirements
- Factoring minimum of $50,000 per month
- Charges a base fee plus factoring rates
Eligibility: Businesses need an average of at least $50,000 in monthly invoices to qualify for Scale Funding’s factoring programs.
Turnaround time: Funding speeds are as fast as the same day—especially after the first round of factoring.
Tips to Compare Factoring Companies
Use these tips to compare the best invoice factoring companies:
- Confirm eligibility criteria. Knowing each company’s requirements is essential when you’re making a list of potential factoring options for your business. Some factoring companies require a certain amount of monthly invoices to qualify or that the invoices be less than 90 days old.
- Consider each company’s advance rates: The factoring advance rate is the percentage of the invoice value that a company will pay you upfront. Some companies offer 100% advance rates while others limit advances to 60% of the invoice value.
- Make note of financing limits: Various factoring companies offer different financing limits. Be sure your preferred factoring company offers financing limits that meet your needs. For example, some offer limits up to $10 million while others offer limits up to $2 million.
What Is a Factoring Company?
Invoice factoring is a type of financing that allows businesses to sell their outstanding invoices to a factoring company in exchange for a portion of the invoice amounts upfront. The invoice factoring company—not the original business—is then responsible for collecting payment from customers.
Invoice Factoring vs. Financing
In contrast to invoice factoring, invoice financing does not involve selling invoices to a third-party factoring company that becomes responsible for collections. Instead, a business that uses invoice financing borrows money that is secured by the value of one or more outstanding invoices. The business remains responsible for collecting the invoice balance, and once an invoice is paid, the business repays the loan.
With factoring services, the creditworthiness of the customers is most important; on the other hand, invoice financing lenders look at the borrowing business’s credit. This means that invoice factoring is best for new businesses that don’t yet have a strong credit profile, while invoice financing is suitable for established businesses with good credit.
How Does Invoice Factoring Work?
Invoice factoring involves a business selling its outstanding invoices to a third-party factoring company in exchange for a portion of the balance upfront. Factoring companies typically buy invoices for between 70% and 95% of the total invoice value—known as the advance rate. Under this approach, the factoring company becomes responsible for collecting outstanding invoice balances, not the business itself.
Once the outstanding invoice balances are collected, the factoring company pays the business the remaining balance minus the factoring fees. Factor fees generally range from 0.50% to 5% per month an invoice remains outstanding and may be fixed or variable.
Invoice factoring agreements may also be recourse or non-recourse. If a business enters into a recourse factoring agreement and a customer does not pay their invoice, the business must buy that invoice from the factoring company at the end of the payment term. Under a non-recourse agreement, the factoring company bears all of the risks of nonpayment.
How to Work With an Invoice Factoring Company
Each invoice factoring company imposes its own eligibility requirements and application procedures. In general, businesses should follow these steps to work with an invoice factoring company:
1. Evaluate financing options. Many factoring companies require that businesses have limited or no access to traditional financing options to qualify for invoice factoring. So, before you resort to invoice factoring, review available financing options like small business loans and lines of credit. If your business is in a risky industry or is otherwise unable to obtain traditional financing, invoice factoring may be a good fit.
2. Research factoring companies. Before entering an invoice factoring agreement, research factoring companies based on qualification requirements, as well as advance rates, factor fees and whether rates are variable or fixed. Also evaluate the availability of non-recourse versus recourse factoring agreements, and read online reviews to gauge each company’s reputation.
3. Compile documentation. Because of the risk involved in invoice factoring, factoring companies typically require businesses to submit extensive personal and business tax returns and business financial records—usually going back at least three years. You may also be asked to provide accounts receivable and accounts payable aging reports to demonstrate how promptly customers typically make payments.
4. Complete formal application. Finally, complete the factoring company’s application form. Each factoring company has its own application process, so talk to a representative to learn more about the relevant application form, approval process and average turnaround time.
A major advantage of invoice factoring is that funds can be secured within a matter of days once an invoice is approved by the factoring company. This makes factoring faster than most traditional forms of financing.
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How to Choose an Invoice Factoring Company
Invoice factoring companies feature different eligibility requirements, advance rates and factor fees than their competitors. What’s more, some factoring companies offer non-recourse agreements, whereas others offer exclusively recourse factoring. Consider these factors when choosing the best factoring company for your business:
Funding Qualifications
Invoice factoring is easier to qualify for than traditional forms of financing, but businesses must still meet certain requirements. And, because the factoring company assumes the risk of nonpayment, factoring companies are also concerned with the creditworthiness of the business’s customers.
These are some common qualifications imposed by factoring companies:
- The company is incorporated in the U.S.
- The company sells to businesses, not directly to consumers
- Monthly sales are at least $5,000
- The business has limited to no access to traditional financing
- Customers are creditworthy
- Customers have 30 days or more to pay invoices—but not more than 90 days
To qualify for invoice factoring and meet the requirements above, factoring companies often require businesses to submit personal and business tax returns for the last three years, financial statements going back three to five years and accounts receivable and payable aging reports.
Advance Rates
The advance rate is the percentage of outstanding invoices the factoring company pays the business upfront. The percentage typically ranges from 70% to 95% but hovers around 80% for most businesses. Factors like the stability of the business, as well as the business’s industry and transaction history typically determine potential advance rates.
For example, a business in the construction industry is considered riskier than more traditional businesses, so the advance rate may be closer to 60%. In contrast, businesses in the transportation industry are considered the least risky and advance rates may span up to 97%.
Factor Fees
Factor fees—sometimes referred to as discount or factoring rates—are the fees companies charge over time and until an invoice is paid in full. These fees generally range from 0.50% to 5% and may be fixed or variable. In the case of fixed factor rates, the rate stays the same until the invoices are repaid. With a fixed rate of 3%, the business is charged a rate of 3% of the total invoice amount when the invoice is paid, regardless of when during the term the invoice is paid.
With variable factor fees, rates increase along with how long it takes the customer to pay off the invoice. For example, the factor rate may start at 1%, increase to 2% in the second week and to 5% in the third week. Alternatively, the rate may start at 2% and remain there for the first 30 days, increasing in set increments after that.
Recourse vs. Non-recourse Agreements
Factoring agreements may be recourse or non-recourse, which dictates what happens if an invoice goes unpaid. If a business signs a recourse factoring agreement and the invoice is not paid, the business must buy back the invoice or trade it for another invoice of equal value. Recourse agreements reduce the risk posed to invoice factoring companies and are more common—especially in high-risk industries like construction.
Under a non-recourse agreement, the factoring company assumes the risk of nonpayment, and the business is not required to buy back any invoices—even those that go unpaid. For this reason, non-recourse factoring agreements are typically more expensive and are reserved for industries that pose less risk to factoring companies.
Methodology
We reviewed lenders based on 16 data points in the categories of factoring details, costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
- Loan details: 30%
- Loan cost: 25%
- Customer experience: 20%
- Eligibility and accessibility: 15%
- Application process: 10%
Within each major category, we also considered several characteristics, including available advance rates, financing amounts and applicable fees. We also evaluated each company’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications and mobile apps.
Where appropriate, we awarded partial points depending on how well a factoring company met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
Frequently Asked Questions (FAQs)
What is the purpose of a factoring company?
The purpose of a factoring company is to provide invoice factoring services to businesses that need access to cash before their accounts receivable are due. Factoring companies can help businesses meet cash flow needs while awaiting payment from customers. This is especially important for businesses in industries that experience delays in payment—like construction and trucking.
How do you qualify for invoice factoring?
Requirements to qualify for invoice factoring vary by factoring company, but businesses must generally meet a few basic standards to be eligible.
To qualify for invoice factoring, a business must be incorporated in the U.S., sell directly to other businesses (not consumers) and have at least $5,000 in monthly sales. In general, the business’s customers must be creditworthy—so as to limit the risk borne by the factoring company—and must have at least 30 days to pay their invoices.
What is a good factor rate from an invoice factoring company?
Factor rates vary by invoice factoring companies but generally range from 0.50% to 5% per month. Rates are calculated based on several variables, including the industry, the volume of receivables the business wants to factor, the average size of individual invoices to be factored and customer creditworthiness.
With fixed fees, the factor rate stays the same until the invoice is repaid; with variable factor rates, the percentage increases every week or other period of time until the invoice is repaid. This means that the maximum factor rate a business pays is also impacted by the speed with which customers pay their invoices.
Is factoring invoices a good idea?
Whether or not invoice factoring is appropriate depends on your business, cash flow and other factors.
If you can qualify for a low-interest business loan, you may end up paying less than if you choose invoice factoring. But if your business is relatively new or has little to no cash flow, you may not qualify for a traditional business loan, or you’ll receive high interest rates if you do. In that case, invoice factoring may be an idea to consider.