The Best Factoring Companies of 2021

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Our factoring company reviews are the result of over 40 hours of research on 75+ factoring companies from across the web. These reviews and our factoring companies guide help small businesses and startups find the best factoring company for their business.

The Best Factoring Companies of 2021

Best Factoring Companies Badge

How We Chose the Best Factoring Companies

When preparing this list, we looked at the most relevant features offered, including lending limits, credit scores, a user-friendly customer portal and the selection of financial programs. Factoring companies abound and they offer many important services to businesses. Improving cash flow due to slow-paying customers and providing access to funds to meet payroll and other expenses are just a couple of the reasons business owners turn to factoring.

Lending Limits

A factoring company’s lending limits are relevant because potential clients need to know whether a business will meet their borrowing needs and whether their credit score is satisfactory. Some factoring companies require a minimum score, while others don’t. Data is available on loan limits and acceptable credit scores to help borrowers avoid spending time filling out applications to businesses that are not a good fit.

Customer Portal

It’s important for a factoring company to offer an intuitive, user-friendly customer portal so borrowers can easily navigate a site when applying, finding information about borrowed amounts and reviewing repayment terms. Two key features for the customer portal are a secure login area with password retrieval and a dashboard that discloses detailed information about the customer’s loan.

Financial Services

Factoring companies are worthwhile financial services because they can save consumers time by replacing bank features that would either entail a bank visit or a second banking website. These services might also save customers money in some cases by reducing or eliminating bank fees. When shopping for a factoring company, some key financial features to consider include vendor fees, checking accounts, and the quickness with which clients receive money.

The 15 Best Factoring Companies of 2021

altLINE

altLINE
The altLINE is a branch of The Southern Bank Company, and it offers invoice factoring for companies that aren’t able to get traditional financing and owners who prefer to avoid traditional financing options. Because altLINE is part of a conventional bank, it offers lending without tacking on numerous extra charges.

Email and phone support are available when altLINE customers have questions or concerns. The lending options include accounts receivable financing, invoice factoring, and asset-based lending that’s backed by a company’s physical property holdings.

Customers of altLINE are able to use funds from invoice factoring for almost any expense, including emergencies and fluctuations, to compensate for business losses or use for growth capital.

Rates & FeesFunding Amount Features
UndisclosedUndisclosed>Support: Email and phone support
>Time to Fund:12-24 hours
>Min. Qualifications: Undisclosed
>More features at altLINE

Pros & Cons of altLINE
Pros Cons
>Customer portal
>Checking accounts offered
>Lending without extra charges
>No line of credit
>No vendor payments

Apex Capital Corp.

Apex-Capital
Apex Capital Corp. offers freight factoring for trucking firms that want to submit invoices for fast funding rather than manage accounting and collection processes in-house. No minimum monthly volumes or long-term contracts are required, and there are no termination fees applied by Apex Capital Corp.

Email and phone support are provided by Apex staff members to answer questions and manage complications. Each trucking firm has a designated account representative that provides personal service.

Checking accounts and ACH deposits are offered as well as a fuel card program. Customers have 24/7 access to the customer service portal, so details about funds and factored invoices are always available. Additionally, there are no monthly premium volume fees, no long-term contracts, and no termination fees.

Rates & FeesFunding AmountFeatures
UndisclosedUndisclosed>Support: Email and phone support
>Time to Fund: 24 hours or less
>Min. Qualifications: Undisclosed
>More features at Apex Capital Corp.

Pros & Cons of Apex Capital Corp.
Pros Cons
>Line of credit
>Accounts receivable financing
>Vendor Payments
>No asset-based lending

BlueVine

BlueVine
BlueVine offers factoring services that accept unpaid invoices from customers. BlueVine then provides approved companies that submit invoices with working capital. Approvals are typically processed within 24 hours, and factoring lines may be as high as $5 million.

Credit scores are checked by BlueVine. To acquire factoring services, business owners’ personal credit scores must be above 530 for invoice factoring service and above 600 to be approved for a business line of credit.

Types of funding offered by this factoring service include lines of credit, accounts receivable financing and asset-based loans. Only B2B businesses are served by BlueVine, and they must be in operation for three months, provide bank statements spanning three months and produce at least $10,000 in revenue each month.

Rates & FeesFunding AmountFeatures
Pay a weekly rate as low as 0.25%, based on the time that the invoice is outstanding
BlueVine offers funding starting at $5,000>Support: Email and phone support
>Time to Fund: 24 hours or less
>Min. Qualifications: Credit score above 530
>More features at BlueVine

Pros & Cons of BlueVine
Pros Cons
>Customer portal
>Vendor payments
>Checking accounts offered
>System is challenging for some new customers

CoreFund Capital

CoreFund-Capital
CoreFund Capital offers invoice factoring that provides working capital to companies using the service. Lines of credit are offered, as well as accounts receivable financing and asset-based lending. They provide options to companies that prefer a specific type of funding or aren’t able to pursue all types of financing because of credit ratings or length of time in operation.

CoreFund Capital mainly serves the trucking industry, with a specialty in factoring for intermodal transportation and trucks operating in the oil and gas industry.

CoreFund Capital’s staffers work Saturdays to assist weekend drivers, and the software offers same-day pay on approved transactions. There’s also a discount fuel card available for drivers to use for fuel or truck repairs.

Rates & FeesFunding AmountFeatures
No monthly minimum
No termination fees

Undisclosed>Support: Email and phone support
>Time to Fund: 24 hours or less
>Min. Qualifications: Undisclosed
>More features at CoreFund Capital

Pros & Cons of CoreFund Capital
Pros Cons
>Customer portal
>Customer service available on weekends
>Discount fuel card available
>No vendor payments
>No checking accounts

Fundbox

Fundbox
Fundbox offers funding options for small businesses in amounts ranging from $1,000 to $100,000. Short-term Fundbox loans are for 12-week periods, and longer-term loans from this company are up to 24 weeks. Customers have the option to pay off loans early to save money on interest charges. Business owners need to have a credit score of 500 or higher to be eligible.

Revolving lines of credit and accounts receivable financing are types of lending offered by Fundbox. Decisions on loan applications are delivered within a few minutes of submitting an application with Fundbox, and funds are then deposited into the checking account for immediate use.

Fundbox has a two-step application process that is managed through the customer portal. These working capital funds can be used to keep a business afloat during downtimes, manage unexpected expenses, repair broken equipment, or support growth when a company is ready to scale upward.

Rates & FeesFunding AmountFeatures
4.66% for 12-week terms
8.99% for 24-week terms
*Fees may vary for each customer and over time
$1,000-$100,000>Support: Email and phone support
>Time to Fund: 2 business days or less
>Min. Qualifications: Credit score of 500 or higher
>More features at Fundbox

Pros & Cons of Fundbox
Pros Cons
>Vendor payments
>Checking accounts offered
>Customer portal
>No asset-based lending

Lendio

Lendio
Lendio offers funding options to customers in amounts from $100,000 to $500,000. Unlike some other factoring companies, Lendio presents borrowers with funding options from a variety of companies rather than directly loaning money. Customers must have a minimum credit score of 500 to be eligible to borrow through Lendio. This lender offers a variety of options, including business lines of credit, SBA loans and accounts receivable financing.

Lendio offers a customer portal that borrowers can access anytime to check details about accounts and review loan terms. To allow potential customers to explore the repayment terms of loan amounts being assessed when combined with prospective loan term lengths and interest rates, a calculator is incorporated into the Lendio website.

The Lendio website also shares options to help potential borrowers, such as a line of credit, where the borrower pays only interest on amounts that are withdrawn from the credit line.

Rates & FeesFunding AmountFeatures
UndisclosedFrom $2,500 to $500,000
>Support: Phone support
>Time to Fund: 24 hours or less
>Min. Qualifications: Credit score of 500 or higher
>More features at Lendio

Pros & Cons of Lendio
Pros Cons
>Checking accounts offered

>Loan type options

>Customer portal
>No asset-based lending
>No vendor payments

Paragon Financial Group

Paragon-Financial-Group
Paragon offers a variety of funding options for businesses, including nonrecourse factoring, purchase order financing and government contract financing. The company has been serving the needs of business borrowers for more than 26 years and it offers funding for many kinds of business needs, such as working capital, buying raw materials or covering advertising costs.

Potential customers may begin the process of borrowing by applying online, using the customer portal, calling in to begin an application or emailing the company for more information.

Paragon Financial Group also offers lines of credit, accounts receivable financing and asset-based lending options. A customer is able to submit invoices to Paragon, and then after approval, funds are deposited into the business checking account, with as much as 90% of the invoice values delivered to the borrower.

Rates & FeesFunding AmountFeatures
Factoring fee: 0.9% to 2.5% Undisclosed>Support: Phone, live chat, email support & account manager
>Time to Fund: 24 hours or less
>Min. Qualifications: Undisclosed
>More features at Paragon Financial Group

Pros & Cons of Paragon Financial Group
Pros Cons
>Customer portal
>Vendor payments
>Checking accounts offered
>Undisclosed fees
>Not ideal for B2C companies

Porter Billing Services

Porter-Billing-Services
Porter provides recourse and nonrecourse invoice factoring for trucking firms and drivers. The company also offers a dispatch service that sets uploads for drivers and checks the credit of customers who request loads, reducing the chance of a trucking firm being cheated by a non paying client.

Porter offers flat-rate pricing options, and customers may receive a 100% advance rate after the factoring fee has been deducted. Smaller firms are not asked to maintain a monthly minimum, and existing clients can receive a reward of up to $1,000 for each new client they refer to Porter.

Lines of credit and accounts receivable financing are two other offerings, and all lending options and loans may be managed using the customer portal.

Rates & FeesFunding AmountFeatures
Up to 100% advance rate (minus the factoring fee)
No monthly minimums on trucking companies with 1 to 2 trucks.
Companies may earn up to $1,000 per referral
Undisclosed>Support: Phone support & dedicated client representative
>Time to Fund: 24 hours or less
>Min. Qualifications: Undisclosed
>More features at Porter Billing Services

Pros & Cons of Porter Billing Services
Pros Cons
>Offers fast, consistent cash flow
>Flexible contract options
>Free discount fuel card
>No asset-based lending

>No vendor payments

Riviera Finance

RIVIERAFINANCE
Riviera Finance is an invoice factoring company that offers lines of credit, accounts receivable financing and asset-based lending to businesses. This type of alternative financing allows company owners to get the funds quickly rather than wait on payments from a client. It also offers a way to gain working capital to support small businesses during difficult times.

Riviera sets the credit limits for companies depending on the credit of the vendor companies that owe the invoices submitted. Larger loans might take longer to process, but Riviera offers an instant funding option for smaller loans. After invoices are submitted, Riviera yields the invoices for payment. This reduces the amount of accounting and work a client must do because it’s a standard part of the service offerings from Riviera.

Rates & FeesFunding AmountFeatures
UndisclosedUndisclosed>Support: Phone, email & live chat
>Time to Fund: 24 hours or less
>Min. Qualifications: Undisclosed
>More features at Riviera Finance

Pros & Cons of Riviera Finance
Pros Cons
>Customer portal
>Vendor payments
>Instant funding for smaller loans
>No checking accounts offered

RTS Financial

RTS-Financial
RTS Financial is a truck invoice factoring company that offers lines of credit, accounts receivable financing and asset-based lending options. RTS offers 97% of the invoice value as its advance rate, and it discloses all pricing details up-front, with no surprise fees or hidden costs. It also asks for no additional fees for processing invoices or minimum volume requests.

RTS offers a fuel card discount program for trucking firms as a cost-cutting measure. Over 1,800 fuel stations participate in the RTS fuel discount program, and RTS offers firms a credit line up to $2,500 per week for each truck. The drivers save 25 cents per gallon when refueling with the RTS Financial fuel card.

A mobile app from RTS makes it easy for drivers to review account information and shows locations of fuel stations that accept the RTS fuel card.

Rates & FeesFunding AmountFeatures
UndisclosedUndisclosed>Support: Phone, email & live chat support
>Time to Fund: Same day
>Min. Qualifications: Undisclosed
>More features at RTS Financial

Pros & Cons of RTS Financial
Pros Cons
>Customer portal
>Vendor payments
> No hidden fees
>No checking accounts offered

Scottish Pacific

Scottish-Pacific
Scottish Pacific provides factoring services for companies that are starting up, going through growth stages and downturns, or need a rapid cash infusion. It serves a number of industries, providing a way for companies to turn unpaid invoices into a way to get funds for projects. Some industries served by Scottish Pacific include retail, wholesale, manufacturing and mining.

Offerings from this company include lines of credit, accounts receivable financing and asset-based lending for businesses that need access to cash. Costs of lending options are undisclosed by the company website, so potential customers must contact the company for more details.

Some features of invoicing with Scottish Pacific are enhanced by the fact that a company owner’s personal assets are not attached to the loans, and the factoring line grows along with the business. Scottish Pacific also manages accounts receivables on behalf of customers and handles collections when invoices are due to be paid.

Rates & FeesFunding AmountFeatures
UndisclosedUndisclosed>Support: Phone support
>Time to Fund: Same day
>Min. Qualifications: Undisclosed
>More features at Scottish Pacific

Pros & Cons of Scottish Pacific
Pros Cons
>Customer portal
>Vendor payments
>Lines of credit available
>No checking accounts offered
>Monthly fee for collecting accounts receivable

Thunder Funding

Thunder-Funding
Thunder Funding offers working capital for trucking firms through lines of credit, accounts receivable financing and asset-based lending. The amounts loaned are between 90% and 95% of the face value of each invoice, with a $1,000 invoice costing the trucking firm between $25 and $40 in factoring fees.

Thunder Funding specializes in invoice factoring for the trucking industry, and it serves both large and small freight transportation firms. Long-term contracts are not required with Thunder Funding, and clients also have access to a fuel card program that discounts on fuel.

Thunder Funding also offers a load board — 123Loadboard — that drivers and companies can access when searching for loads. This can help with finding backhaul loads to increase revenue and reduce the cost of running empty miles.

Rates & FeesFunding AmountFeatures
Undisclosed90% to 95% of the face value on invoices
>Support: Phone & email
>Time to Fund: Same day
>Min. Qualifications: Undisclosed
>More features at Thunder Funding

Pros & Cons of Thunder Funding
Pros Cons
>Customer portal
>Checking accounts offered
>No long-term contracts
>No vendor payments

Triumph Business Capital

Triumph-Business-Capital
Triumph Business Capital is an invoice factoring company that offers lines of credit, accounts receivable financing and asset-based lending to customers in the freight hauling, staff management and government contracting industries. Triumph serves businesses of varying sizes, including small- to medium-sized businesses.

Triumph Business Capital charges several types of fees, including factoring, closing, monthly and termination fees. An extra factoring fee is also charged if receivables remain outstanding after a factor’s original 30-day term has ended.

Triumph Business Capital offers a universal fuel card program to trucking firms that help cut fuel costs for a carrier and provides a way to get cash advances. A DAT load board that helps drivers find and secure loads is also provided as part of the offerings from Triumph Business Capital.

Rates & FeesFunding AmountFeatures
UndisclosedUndisclosed>Support: Phone, email & dedicated account manager
>Time to Fund: Same day
>Min. Qualifications: Undisclosed
>More features at Triumph Business Capital

Pros & Cons of Triumph Business Capital
Pros Cons
>Customer portal
>Vendor payments
>Fuel card available
>No checking accounts offered

Universal Funding Corporation

Universal-Funding
Universal Funding Corporation offers lines of credit, accounts receivable financing and asset-based lending to businesses in numerous industries. This type of invoice factoring offers company owners a way to get working capital during downturns, when credit availability is limited or when entering a growth phase.

Funding is provided to borrowers within two days at a 95% advance rate. Funding amounts range from between $25,000 and $5 million per month. Universal Funding Corporation also charges a monthly access fee of $25 and outgoing wire fees of $30.

Though Universal Funding Corporation doesn’t look at credit scores, there are several things that affect the rates of the factoring fees for customers, including each vendor or client’s credit strength, industry-specific payment cycles, the annual sales volume of the company and amounts of the invoices submitted for factoring.

Rates & FeesFunding AmountFeatures
Undisclosed$25K to $5M per month>Support: Phone & email
>Time to Fund: Same day
>Min. Qualifications: Undisclosed
>More features at Universal Funding Corp.

Pros & Cons of Universal Funding Corporation
Pros Cons
>Customer portal
>Vendor payments
>Multiple ancillary services
>No checking accounts offered

What Are Factoring Companies?

Factoring companies are considered third-party financial institutions because they step into financial transactions between businesses and vendors, providing funds to businesses in exchange for invoices that vendors owe. Factoring companies loan a percentage of invoice totals to businesses and then either collect funds from vendors on behalf of the businesses or allow the businesses to collect from vendors and repay the factoring companies.

Whether the factoring company collects on invoices from vendors or the customer determines whether the account is being invoice factored, financed, or accounts receivable financed. These terms are often used interchangeably, so it’s important for customers to review their terms in a contract carefully and understand the fees the factoring company requires.

Some factoring companies charge only the factoring fee, which may also be expressed to customers in terms of interest charges. Other factoring companies may have a list of charges that include factoring fees and processing fees as well as fees for factors that extend beyond the initial loan period, which is typically 30 days.

Benefits of Factoring Companies

Factoring companies provide a nontraditional way for businesses to obtain financing. This may help improve cash flow, allow quick access to needed working capital, and simplify transactions through direct deposits. Factoring companies that specialize in the transportation industry might also offer discount fuel cards and a load board to help truckers save money by keeping trucks moving with profitable loads.

Factoring companies can help businesses by providing working capital for improved cash flow. Funds can be used for any business needs, such as making payroll or buying raw materials for manufacturing or fuel. Funds can also be used to cover existing debts, which may help a business owner avoid late fees or overdraft charges for automatic payments that are scheduled.

Fast funding is another benefit of using this type of third-party lender. Where a traditional loan may take several days or weeks to process, invoice factoring is typically processed quickly, and funds may be delivered as soon as the same day or within a couple of days. Invoice factoring is a convenient alternative to applying for traditional loans. Also, funds may be deposited in a provided checking account or deposited directly to a bank account via ACH transfers.

Must-Have Features of Factoring Companies

Factoring companies offer a variety of services and features, and many of those services are geared toward specific industries. For example, factoring companies that serve the transportation industry typically offer discount fuel cards to help customers save tons of money on fuel and load boards as well as help customers find loads, so trucks don’t run empty and unpaid. Some features that are common to most factoring companies include lending limits, customer portals and types of financial services offered.

When you’re choosing a factoring company, lending limits are important to know because if you need to borrow a large amount and the factoring company offers only smaller loans, you might need to keep looking to find a factoring company that handles your necessary amounts.

A user-friendly customer portal is another must-have feature to look for in a factoring company. This type of web-based portal allows customers 24/7 access to account information and tools for managing accounts, such as a tool for submitting invoices and an area for checking amounts that are owed.

Factoring companies sometimes offer different types of financial services, so it’s important to know if the one you’re considering offers only invoice factoring or if accounts receivable financing and asset-based lending are also options.

The Cost of Factoring Companies

Most factoring companies charge between 5% and 10% of the invoice amounts financed. However, rates may vary widely, and a number of factors affect rates, such as vendor credit ratings, amounts borrowed and the number of months for which the loan is being offered.

The length of the contract term may also affect the cost of using a factoring company. For example, a company may state the interest rate that’s to be charged in terms of weeks, but the loan repayment terms may be 30, 60 or 90 days, making the final cost much higher than expected if only looking at the rate that’s charged on a weekly basis.

There are also a number of additional fees borrowing companies need to watch for in contracts. These additional fees include minimum volume fees, early termination fees, plus factoring fees and rates that may vary based on the loan period. There may also be ACH fees, closing fees, a monthly access fee or over-advance fees. Some final charges to look for in factoring contracts are wire-transfer fees, same-day funding fees and fees for using a lockbox to store valuables.

Though not a cost that customers incur, one last financial thing to consider when looking at factoring companies is that some offer customers payments of up to $1,000 for successful referrals. This offers invoice factoring customers a chance to earn back some money by simply reaching out to other business associates or people who are interested in starting a business.

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