11 BEST Invoice Factoring Companies [2024 TOP RANKINGS]

Read this article to gain a deep insight into finding the best Invoice Factoring Companies that suit your needs:

As people are becoming more independent and starting their businesses, there are more companies now than ever. Amid such huge competition, the main obstacle for many companies is finding funds to finance their businesses. However, an easy solution to this problem can provide instant cash flow to keep businesses running.

Invoice factoring is a process where companies can access cash whenever they are in need. Businesses can sell unpaid invoices to a lending company that will provide a certain percentage of the unpaid invoices as cash to the businesses.

This way, companies can keep their business operations running and avoid low cash issues.

Top Invoice Factoring Companies – Review

If you are in search of finding funds for your business, we have brought you the top invoice factoring companies you can choose from according to your suitability.

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Market Trends: The factoring services industry will see steady growth in the coming years. The expansion will occur mainly due to a wide variety of new businesses. These businesses will mainly include small and medium companies that will require alternative ways of finding funding solutions to keep a consistent cash flow.

Difference Between Invoice Financing and Factoring

Invoice financing helps you borrow money using unpaid invoices from your customers. It works by taking loans from factoring companies by showing unpaid invoices. Businesses can pay back the loan amount and fees on receiving their customers’ money.

On the other hand, Invoice Factoring involves selling unpaid invoices to the lender for a certain percentage of the total amount. The lender then collects the invoices directly from the customer for the full amount. The process allows businesses to get instant cash funds without having to worry about paying them back.

How do Factoring Companies Work

There are several factoring companies out there that offer a wide range of funding services, depending on the type of business.

They work by buying unpaid invoices from businesses for a certain percentage of the total amount of the invoices. They also charge a fee for their services.

How to Choose a Factoring Company

To choose a factoring company that best suits your business, look for funding limits, factor fees, overall process duration, repayment terms, and advance rate percentages. In addition, you should also check whether the company requires credit score eligibility, provides bookkeeping software integration, and invoice management processes.

Apart from the basics, you should also learn about the factoring company’s charges and ensure that there are no hidden fees. Transparency is one of the crucial aspects that you should look for when choosing one of the best invoice factoring companies.

Some hidden fees that companies may charge include maintenance fees, monthly minimum fees, cancellation or termination fees, due diligence fees, and float day fees.

FAQs on Factoring Services

Q #1) What is the best factoring company?

Answer: To choose the best factoring companies, one should look at the various strategies adopted by the company to make the process easier and hassle-free.

According to these aspects, one of the best factoring companies for small businesses is Breakout Capital. It offers a transparent funding process without any hidden charges. The business also gets the opportunity of learning business funding through the education offered by Breakout Capital.

Q #2) How much do invoice factoring companies charge?

Answer: The fees charged for invoice factoring vary depending on the type of factoring company and the services they offer. Generally, charges for invoice factoring involve a variable fee structure.

Companies that use a variable fee structure charge a certain percentage of the unpaid invoices until they get paid.

Typically, around 1 to 3 percent of the invoice is for an initial period and charges additional costs until the invoices are paid off. So, the longer it takes to pay off the invoices, the more businesses will have to pay for the factoring. It will also depend on whether businesses opt for recourse or non-recourse factoring services.

Some companies may have an upfront fee without any variables. Businesses pay the amount once. It doesn’t matter how long the invoices remain unpaid. Most invoice factoring companies for trucking and freight businesses offer similar fee structures.

Q #3) Is factoring fees tax deductible?

Answer: Yes, factoring fees are tax deductible. Commissions, termination fees, upfront charges, maintenance fees, and all other factoring costs are tax deductible.

However, the tax amount depends on several factors, including the location of your business, reporting of factoring expenses, the relation with the factoring company, and the type of contract you have with the factoring company.

List of the Best Factoring Companies

Here is the list of factoring companies with a specialty in invoicing:

1. Breakout Capital
2. Triumph Business Capital
3. Nav (Business financing options/Invoice financing)
4. eCapital
5. altLINE (altline.sobanco)
6. RTS Financial
7. TCI Business Capital
8. Riviera Finance
9. PorterFreight Funding
10. Factor Funding Company
11. Fundbox

Comparison Between Best Factoring Companies For Invoice

The table below shows the comparison between the best Invoice Factoring Companies and their factoring businesses in the US with their location, expertise, and estimated value.

Detailed reviews:

#1) Breakout Capital (Chicago, Illinois)

Best for small businesses and start-ups.

Breakout Capital offers funding solutions to businesses and helps them with instant cash requirements. The company offers various types of funding to help suit different businesses. The company also provides invoice factoring services to customers to help them get quick funds.

The company offers funding services depending on the size of the business. It provides the right funding options for businesses with varying requirements.

Apart from funding solutions, Breakout Capital educates businesses regarding various business funds. It helps start-ups and budding businesses organize their funding strategies.

Founded in: 2014
Number of Employees: 50
Locations: Virginia, South Carolina

Core Services:

• Business Loans
• SBA Loans
• Breakout Bridge
• Merchant Cash Advance
• Equipment Leasing
• Asset Based Lending

Features:

• Transparency regarding the process
• Provides instant funds
• Funding depends on the size of the business

Loan Terms: They provide loans of up to $100,000. You can repay it on a customized schedule and draw against your repaid amount.

Maximum Funding: $1000,000

Pros:

• Affordable fees
• Offers support throughout the process.
• Doesn’t require many qualifications.

Cons:

• Factor rates are high.

When to Choose:

• If you need flexible financing.
• If you want to educate yourself about business financing.

When not to Choose:

• If you own a large business.

Website: Breakout Capital

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#2) Triumph Business Capital (Coppell, Texas)

Best for small and large businesses.

Triumph Business Capital is one of the top factoring companies for trucking and freight. The company offers funding services for small and big businesses that can benefit from instant funding solutions. It processes funding applications quickly and fulfills cash demands efficiently.

The company offers financing services, including equipment purchasing, insurance, and asset-based lending.

It also provides recourse and non-recourse invoice factoring solutions. One of the best features of the company is the support that it provides and its values relations with its customers.

Founded in: 2004
Number of Employees: >200
Locations: Texas

Core Services:

• Transportation factoring
• Freight Brokers
• Fleet factoring
• Owner-Operator to mid-size fleets
• Asset-based lending
• Fuel programs
• Equipment Financing
• Truck insurance

Features:

• Offers same-day funding
• Complete transparency, no hidden charges
• Offers 24/7 credit checks
• Provides back-office support
• Takes care of invoicing and collections
• Offers fuel card program

Loan Terms: They provide different types of loans based on your requirements. For asset-based loans, you will submit your documents and the asset experts will lend accordingly, starting with $1,000,000.

Maximum Funding: $6,000,000

Pros:

• Up to 100% advance rates.
• The company offers a fuel discount program.
• You can run credit checks.

Cons:

• Minimal fee transparency.

When to Choose:

• If you require more specific loans.
• If a personal relationship with the lender is important to you.

When not to Choose:

• If you don’t want a severe credit check.
• If you can’t afford the fees.

Website: Triumph Business Capital

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#3) Nav (Draper, Utah)

Best for small, medium, and large businesses.

Nav is a funding solution-providing company that connects borrowers with lenders. It helps companies get the right funding solution depending on their business.

The company also allows its customers to apply for invoice factoring services. They can get better repayment terms with the help of credit score monitoring services offered by Nav.

Nav partners with numerous funding service providers to bring the best solutions for its customers. It also offers credit score tracking services so that customers can improve their FICO and get better funding solutions.

Founded in: 2012
Number of Employees: 200
Locations: California, Pennsylvania

Core Services:

• SBA loans
• Invoice financing
• Equipment Financing
• Business lines of credit
• Merchant Cash Advance
• Microloans
• Start-up loans

Features:

• Connects businesses with the most suitable funding companies.
• Funding managers help businesses get the best rates and terms.

Loan Terms: The company decides the amount based on your personal and business credit. You may need to provide an Accounts Receivable report.

Maximum Funding: 100% of the invoice value.

Pros:

• Provides funds within 24 hours.
• Offers various financial products.

Cons:

• High factoring rate.

When to Choose:

• If you have a low credit score.
• If you need quick approval and the least paperwork.
• If you want several loan options.

When not to Choose:

• If you cannot afford high-interest rates.
• If you are a B2C company.

Website: Nav

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#4) eCapital (Aventura, Florida)

Best for small and medium businesses.

eCapital offers instant funding solutions with its invoice factoring service. The company has been in the industry for quite a long time, and its expertise makes them one of the most reliable choices for businesses. The company also offers high advance rates, and businesses can get funds quickly.

The company has strategic partnerships that help customers get funding fast. It also has established technologies to help businesses have more control over their assets. The company has specific solutions designed for various types of businesses.

Founded in: 2006
Number of Employees: <500

Locations: Georgia, California, Texas, Glasgow, Manchester, Florida, Birmingham, Minnesota, Tennessee, New York, Newport, Ontario, Wallingford, Toronto.

Core Services:

• Freight factoring
• Invoice factoring
• Asset-based lending
• Equipment Financing
• Lines of credit
• Transportation financing
• Payroll funding solutions
• Industry-based financing

Features:

• Quick responses to the needs of businesses.
• Complete transparency
• Values Customer Trust
• Focuses on providing the best solutions.

Loan Terms: You must sign up and upload your invoices for payment. The company will reach out within 24 hours.
Maximum Funding: $30,000,000

Pros:

• Gives advances up to 90%.
• Offers non-recourse factoring.

Cons:

• Not among the cheaper options.

When to Choose:

• If you own a small business.
• If you need quick payments.

When not to Choose:

• If you intend to receive more than $30,000,000.

Website: eCapital

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#5) altLINE (Birmingham, Alabama)

Best for large businesses.

altLine is one of the most reliable funding service providers as it is a part of the Southern Bank. The company collaborates with lenders nationwide to offer customer invoice factoring services. It offers high funding with low charges.

The reputable bank established altLINE as a financial department under it to provide commercial loans. The bank has decades of experience that makes the company one of the best funding solutions for small and medium businesses.

Founded in: 1936
Number of Employees: <50

Locations: Alabama, Maryland, Florida, Mississippi, Georgia, Indiana, North Carolina, Kansas, Virginia, Missouri, Oklahoma, South Carolina, Tennessee, Texas

Core Services:

• Invoice factoring
• Accounts receivable financing

Features:

• Assures complete transparency
• Financing at low rates
• Fast and hassle-free approval
• Insured by FDIC

Loan Terms: Get in touch with the company to know the specific loan terms.
Maximum Funding: You can contact them through their website to find out the maximum funds they can provide.

Pros:

• A reputable banking institution backs the company.
• Low discount rates of 0.50%.
• It doesn’t carry additional borrowing costs.

Cons:

• Cannot expect quick funds.

When to Choose:

• If you need a variety of factoring options.
• If you want a low discount rate.

When not to Choose.

• If you require instant funds

Website: altLINE

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#6) RTS Financial (Overland Park, Kansas)

Best for large businesses.

RTS Financial helps businesses that require regular cash flow. It mainly focuses on trucking and freight businesses, but also provides funds for other industry-based companies. It offers fuel discounts and trucking software to help businesses grow and increase profitability.

RTS Financial provides funding quickly with simple procedures. It takes less than 24 hours to get funding from the company.

The company also works with budding businesses and has a flexible credit score policy. It provides funding based on the credit score of the customer rather than on the business.

Founded in: 1995
Number of Employees: <500
Locations: Dallas, Kansas City, Atlanta, Chicago, Midland, Ft. Lauderdale, Phoenix, Laredo, Nashville.

Core Services:

• Trucking factoring
• Bundled services
• Mexican trucking factoring
• Fuel card program
• Oilfield factoring
• International factoring

Features:

• Access to user-friendly trucking software.
• Instant funding within 24 hours.
• Access information for freight brokers with strong credit.
• Get fuel credit lines up to $2,500/week.

Loan Terms: You can avail of factoring in 24 hours with no hidden fees.
Maximum Funding: $2,500 per week

Pros:

• No additional or hidden charges.
• You can receive funds within 24 hours.
• Offers discounts on fuel cards.

Cons:

• Might face problems getting out of contracts.

When to Choose:

• If you want quick funds,
• If you don’t want to deal with hidden fees.

When not to Choose:

• If you want the rates upfront.
• If you don’t want to deal with cancellation fees.

Website: RTS Financial

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#7) TCI Business Capital (Edina, Minnesota)

Best for medium and large businesses.

TCI Business Capital offers various funding services, along with free credit checks. The company also offers a fuel card program customers can use to get discounts.

The factoring services help customers get funds quickly and make their businesses more profitable.

Although the company has a high minimum revenue requirement compared to other companies, it offers various funding services according to the needs of businesses. The company may not be as transparent, but it offers quick funds essential for businesses.

Founded in: 1994
Number of Employees: 79
Locations: Minnesota

Core Services:

• Invoice factoring
• Payroll funding solutions
• Accounts receivable financing
• Complimentary factoring services

Features:

• Quick and easy funding processes
• Offers the best rate
• Provides month-to-month terms
• Range of financing options
• Large advances

Loan Terms: You need to provide B2B services and have reliable customer credit, and your monthly sales should meet the requirements.

Maximum Funding: $10,000,000

Pros:

• Get funds within three days.
• Well-grounded payment terms.
• Funds up to 90% of the invoice value.

Cons:

• Low transparency regarding fees.

When to Choose:

• If you have a medium or large business.
• If you require large funds.

When not to Choose:

• If you require amounts less than $50,000.

Website: TCI Business Capital

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#8) Riviera Finance (Los Angeles, California)

Best for medium and large businesses.

Riviera Finance is one of the top invoice factoring companies. It accepts overdue invoices and helps businesses by providing quick funds. Also, the company does not ask for credit scores or experience and offers up to 95% of the unpaid invoice amount.

The organization has a long history of offering loans and helping with businesses’ finances. It offers a high loan amount to its customers with a hassle-free online application. The company offers non-recourse factoring services.

Founded in: 1969
Number of Employees: 243

Locations: Colorado, Illinois, Texas, California, Washington, Minnesota, Wisconsin, Georgia, Maryland, Massachusetts, North Carolina, Florida, Pennsylvania, Tennessee, New Jersey, Alberta, and Ontario.

Core Services:

• Non-recourse factoring
• Invoice factoring
• Fast Credit
• Alternative Financing
• Online Account Management
• Transportation factoring

Features:

• Fast response to client needs
• Quick cash turnaround
• Efficient verification of products and services
• Send in invoice directly

Loan Terms: You must establish a credit limit. They will verify your invoice for the product or service and send cash within 24 hours.

Maximum Funding: Up to 92% of the invoice

Pros:

• Offers funding within 24 hours
• Does not require experience or a credit score
• No start-up fees

Cons:

• High rates

When to Choose:

• If you need large funds.
• If you have long overdue invoices.
• If you have a low credit score.

When not to Choose:

• If you don’t want a long-term commitment.

Website: Riviera Finance

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#9) PorterFreight Funding (Birmingham, Alabama)

Best for small and large trucking companies.

PorterFreight Funding offers financing solutions to trucking and freight companies that require consistent cash flows.

The company provides flexible factoring solutions to large and small trucking businesses. It also offers a dispatching network of pre-approved shippers and brokers.

The company offers instant factoring solutions and funding within 24 hours. Businesses can also take advantage of discounts by signing a six-month or 1-year contract with the company. Customers get a personal representative who help them with their business requirements.

Founded in: 2011
Number of Employees: <50
Locations: Alabama

Core Services:

• Freight factoring
• Freight Brokerage
• Dispatching
• Insurance
• Fuel card
• Trucking compliance

Features:

• Consistent cash flow.
• Availability of flexible contracts.
• Work with pre-approved brokers.
• Free fuel card with advances and discounts.

Loan Terms: They offer Recourse Factoring with short contracts you can renew whenever you need. They also provide non-recourse factoring that gives you 100% of your invoice instantly.

Maximum Funding: You can contact them through their website to find out the maximum funding they can provide.

Pros:

• Offers recourse and non-recourse programs.
• No hidden charges.
• Get funding within 24 hours against unpaid invoices.

Cons:

• Doesn’t disclose fees upfront.

When to Choose:

• If you want flexibility in your contracts.
• If you need consistent funding.

When not to Choose:

• If you do not want to take the risk of recourse factoring.

Website: PorterFreight Funding

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#10) Factor Funding Company (Houston, Texas)

Best for small businesses.

Factor Funding Company offers non-recourse factoring solutions that help businesses resolve their cash flow issues. The company offers various factoring options depending on the size and requirements of the customer’s business.

Although businesses cannot apply for the services directly from the company website, it provides high advances against invoices.

The company does not have a factoring limit but provides credit against collateral and the ability to repay the invoice amount. Businesses do not have to buy back the invoices. Instead, the company takes care of the collection of the accounts receivables.

Founded in: 1996
Number of Employees: <10
Locations: Texas

Core Services:

• Accounts receivable factoring
• Purchase Order funding
• Debt collection
• Settlement funding
• Asset-based loans
• Real Estate Investments
• Merchant funding
• Equipment Finance
• Transportation and freight funding

Features:

• Get financing up to $10 million per month.
• Wide range of factoring options.

Loan Terms: You must qualify for a question-and-answer evaluation. Then, submit your application and receive funds within 24-48 hours.

Maximum Funding: $10,000,000 Per month

Pros:

• Instant cash flow within 24 to 48 hours
• No obligations
• No upfront costs

Cons:

• Doesn’t offer online services.

When to Choose:

• If you have low funding requirements.
• If you need instant cash flow.

When not to Choose:

• If you require more than $10 million.

Website: Factor Funding Company

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#11) Fundbox (San Francisco, California)

Best for small businesses.

Fundbox offers a unique funding solution with its invoice financing. Businesses that do not wish to sell their unpaid invoices can get the required funding from the services offered by the company. They can get short-term loans against the accounts receivables.

The company allows its customers to have access to a line of credit with fixed charges. It only takes two steps to get the necessary financing and does not charge early payment penalties. The company offers a 12 to 24-week repayment option.

Founded in: 2013
Number of Employees: <500
Locations: Texas and Tel Aviv

Core Services:

• Business Credit
• Fundbox Term Loan
• Fundbox flex pay
• Fundbox plus
• Insights

Features:

• Cash flow solutions for small businesses.
• Provides a financial platform for partners.

Loan Terms: You must be based in the US and have a 600+ personal FICO score. If your online application is approved, funds may arrive the next business day.

Maximum Funding: $150,000

Pros:

• Offers 100% Loan Amount.
• Provide funds within 24 hours.
• No need to sell invoices.

Cons:

• Requires 6+ months in business.

When to Choose:

• If your credit score is quite low.
• If you need instant funding.

When not to Choose:

• If you require funds above $150,000.
• If you don’t have a compatible accounting software.

Website: Fundbox

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Conclusion

In this article, we discussed the best Invoice Factoring Companies. We gave a detailed description of each of the companies, including their core services, features, pros, cons, when and when not to choose, and much more.

All the detailed insights will make it easier for you to choose the best company suitable for your business. You can compare each company’s services and make the right choice depending on your business type.

Whether it is a small or large business, you can find the best invoice factoring company to solve the short-term funding requirements for your business. Invoice factoring helps with consistent cash flow for businesses against unpaid invoices.

Funding should not be a hindrance to the path to success and growth of your business. With the help of invoice factoring, businesses do not have to wait long periods to fulfill their business goals.

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Our Review Process

• Total Time Taken to Research the Article: 30-32 hours
• Total Companies Searched Online: 19
• Total Companies Shortlisted for Review: 11