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Best Factoring Companies: 2023 Full List [Updated]

Best Factoring Companies – Factoring is a type of financing that allows businesses to sell their unpaid invoices to a third-party company, called a factor, and get immediate cash for them. Factoring can help businesses improve their cash flow, meet their expenses, and grow their operations. However, not all factoring companies are the same. Some may offer better rates, terms, services, and customer support than others.

To help you find the best factoring company for your business needs, we have reviewed and compared some of the top factoring companies in the market based on their features, benefits, costs, and reputation. Here are our picks for the best factoring companies for 2023.

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Best Overall: FundThrough

FundThrough is our best overall factoring company for 2023 because it offers fast and easy access to working capital without adding debt to your balance sheet. FundThrough has two types of factoring products: invoice factoring and invoice financing. Invoice factoring allows you to sell your invoices to FundThrough and get 100% of their value upfront. Invoice financing allows you to borrow against your invoices and repay them over time with fees starting at 2.75%.

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FundThrough has a simple and transparent pricing structure, with no hidden fees or long-term contracts. You can apply online in minutes and get approved within 24 hours. You can also integrate FundThrough with your accounting software and choose which invoices you want to factor or finance. FundThrough works with businesses of all sizes and industries across the U.S. and Canada.

Best for Transportation: eCapital

eCapital is our best factoring company for transportation because it specializes in providing cash flow solutions for trucking companies and freight brokers. eCapital has over 25 years of experience in the transportation industry and understands its unique challenges and opportunities. eCapital offers competitive rates, flexible terms, fuel cards, equipment financing, load boards, and other value-added services.

eCapital has a fast and easy application process, with no credit checks or minimum volume requirements. You can get approved within hours and receive funds within 24 hours. You can also access your account online or through a mobile app and track your invoices and payments in real-time. eCapital works with trucking companies and freight brokers of all sizes across the U.S., Canada, and Mexico.

Best for Startups: Riviera Finance

Riviera Finance is our best factoring company for startups because it has low eligibility requirements and high advance rates. Riviera Finance has been in business since 1969 and has over 25 offices across the U.S. and Canada. Riviera Finance offers non-recourse invoice factoring, which means it assumes the credit risk of your customers and protects you from bad debts.

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Riviera Finance does not require a minimum credit score, a minimum time in business, or a minimum monthly volume to qualify for its services. You can factor in as little as $5,000 or as much as $2 million per month. Riviera Finance also offers advance rates of up to 95%, which means you can get more cash upfront for your invoices. Riviera Finance works with businesses of all sizes and industries across the U.S. and Canada.

Best for Large Invoices: altLINE

altLINE is our best factoring company for large invoices because it offers low fees and high advance rates for businesses that need to factor large amounts of invoices on a regular basis. altLINE is a division of The Southern Bank Company, which has been in business since 1936. altLINE offers recourse invoice factoring, which means you are responsible for repaying the factor if your customers do not pay their invoices.

altLINE has a transparent and competitive pricing structure, with fees starting as low as 0.50% per invoice. You can also get advance rates of up to 90%, which means you can get more cash upfront for your invoices. altLINE does not charge any application fees, origination fees, termination fees, or minimum volume fees. You can apply online or by phone and get approved within 24 hours. altLINE works with businesses of all sizes and industries across the U.S.

Best for Freight Brokers: Triumph Business Capital

Triumph Business Capital is our best factoring company for freight brokers because it offers specialized services and solutions for the freight brokerage industry. Triumph Business Capital is a division of TBK Bank, which has been in business since 1981. Triumph Business Capital offers non-recourse invoice factoring, which means it assumes the credit risk of your customers and protects you from bad debts.

Triumph Business Capital has a dedicated team of experts who understand the freight brokerage industry and can help you with your cash flow needs. Triumph Business Capital also offers advance rates of up to 100%, which means you can get the full value of your invoices upfront. Triumph Business Capital also offers fuel cards, carrier payments, load boards, insurance, and other value-added services. Triumph Business Capital works with freight brokers of all sizes across the U.S.

Best for Flexible Rates: TCI Business Capital

TCI Business Capital is our best factoring company for flexible rates because it offers customized rates and terms based on your business needs and preferences. TCI Business Capital has been in business since 1994 and has offices across the U.S. and Canada. TCI Business Capital offers recourse invoice factoring, which means you are responsible for repaying the factor if your customers do not pay their invoices.

TCI Business Capital has a flexible and personalized pricing structure, with fees ranging from 1% to 4% per invoice. You can also get advance rates of 60% to 90%, which means you can get more or less cash upfront for your invoices depending on your cash flow needs. TCI Business Capital does not charge any application fees, setup fees, or monthly minimum fees. You can apply online or by phone and get approved within 24 hours. TCI Business Capital works with businesses of all sizes and industries across the U.S. and Canada.

In conclusion, Factoring is a type of financing that allows businesses to sell their unpaid invoices to a third-party company and get immediate cash for them. Factoring can help businesses improve their cash flow, meet their expenses, and grow their operations. However, not all factoring companies are the same. Some may offer better rates, terms, services, and customer support than others.

Frequently Asked Questions (F&Qs)

What is AR factoring?

AR factoring, also known as invoice factoring or accounts receivable financing, is a type of short-term debt financing that allows businesses to sell their accounts receivable (AR) to a third party, called a factor, at a discount. The factor then collects the full amount of the AR from the customer and remits the balance to the business, minus a fee.

What are the two types of accounts receivable factoring?

There are two main types of accounts receivable factoring: recourse and non-recourse.

  • Recourse factoring is the most common type of factoring. With recourse factoring, the factor retains the right to go back to the business if the customer does not pay the invoice. This means that the business is still liable for the debt if the customer does not pay. Recourse factoring is typically less expensive than non-recourse factoring, but it also carries more risk for the business.
  • Non-recourse factoring is a less common type of factoring. With non-recourse factoring, the factor assumes the risk of non-payment. This means that the business is not liable if the customer does not pay. Non-recourse factoring is typically more expensive than recourse factoring, but it also carries less risk for the business.

What is the cost of accounts receivable factoring?

The cost of accounts receivable factoring depends on a number of factors, including the creditworthiness of the customer, the industry the business is in, and the terms of the factoring agreement.

Is factoring receivables a good idea?

Factoring receivables can be a good idea for businesses that need quick access to cash and are confident that their customers will pay their invoices. However, it is important to carefully consider the costs and risks involved before deciding whether or not to factor in receivables.

What is the difference between AR financing and factoring?

AR financing is a type of loan that is secured by accounts receivable. This means that the lender can seize the accounts receivable if the borrower defaults on the loan. AR financing typically offers lower interest rates than factoring, but it also comes with more restrictions. For example, the borrower may be required to maintain a certain credit score or to have a certain amount of accounts receivable.

Factoring is a type of sale in which the business sells its accounts receivable to a third party, called a factor, at a discount. The factor then collects the full amount of the accounts receivable from the customer and remits the balance to the business, minus a fee. Factoring typically offers faster access to cash than AR financing, but it also comes with higher interest rates.

Here is a table that summarizes the key differences between AR financing and factoring:

Factor AR Financing Factoring
Ownership of accounts receivable The business retains ownership of the accounts receivable. The factor purchases the accounts receivable.
Interest rate Typically lower than factoring Typically higher than AR financing
Restrictions May have restrictions on the borrower’s credit score or the amount of accounts receivable. No restrictions on the borrower’s credit score or the amount of accounts receivable.
Access to cash Typically slower than factoring Typically faster than AR financing
Cost Typically lower than factoring Typically higher than AR financing
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