Best Factoring Companies

altLINE's low fees make it the best overall factoring company

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Factoring occurs when a company sells one or more accounts receivable invoices owed on credit terms to a financier, known as a factor, for less than what they are owed. That discount, plus some additional fees, is how the factoring company makes its profit. Then factoring firm (hopefully) collects the total amount of the invoice owed from the original business' customer.

The best factoring companies are able to advance funds to their clients within one business day, and they charge minimal fees. It's also helpful for factoring companies to be able to integrate with your accounting software and to have minimal credit requirements.

Best Factoring Companies of 2023

Best Overall : altLINE



  • Rates: As low as 0.50%
  • Funding Timeline: May take a couple of days
  • Banking Affiliation: The Southern Bank Company
Why We Chose It

We chose altLINE as our best factoring company for large invoices because, as a commercial financing division of The Southern Bank, it is a direct financier and transparent to the business customer. As a result, it doesn’t have the middleman fees that are typically a percentage of the invoice, which saves more money on a large invoice.

Pros & Cons
  • Provides a wide range of factoring options

  • Discount rates as low as 0.50%

  • Supported by a reliable banking institution

  • Funds may not be instant


Backed by The Southern Bank Company, altLINE has provided more than $800 million in funded invoices since 1936. Unlike most factoring companies, it is backed by an established, reputable bank, making it our preferred choice for large invoice factoring because. As a direct lending company, altLINE doesn’t carry additional borrowing costs that can become expensive on large invoices. While we hear its upper limit on invoice value may be a bit lower than a few of its competitors, we still selected it as best for large invoices because it keeps its fees transparent and charges fewer of them, which lowers the cost for the business customer with a large invoice.

Its factoring rate can be as low as 0.50%. Other fees that may apply are for origination, wire transfers, and to speed up funding.

The company does not use credit score as a primary consideration. However, the specific rate will be determined partly by the customer’s credit and capacity to pay their invoices.

To work with altLINE, you may need to meet certain requirements around the amount of annual sales you have and the amount of invoices you need to factor.

You can request a quote on altLINE’s website. After completing the request, an altLINE specialist will work with you to determine if factoring is the right service.

The main drawback altLINE has compared to its competitors is the possibly slower funding timeline. It may take a couple of days to get your money, however, your experience may be more or less. The application process, however, is fast and does not require an application fee.

Minimum and maximum factoring amounts may apply.

Best for Invoice Management : Triumph Business Capital

Triumph Business Capital

 Triumph Business Capital

  • Rates: Vary
  • Funding Timeline: Same-day
  • Banking Affiliation: N/A
Why We Chose It

Triumph Business Capital is our choice as the best factoring company for invoice management because of its online MyTriumph web portal. This portal provides a full array of client reporting and allows businesses to monitor the status of their invoice payments.

Pros & Cons
  • Ability to run credit checks and see the status of transactions in its portal

  • High advance rates, up to 100%

  • Fuel discount program

  • Not as much fee transparency as its competitors


Headquartered near Dallas, Texas, Triumph Business Capital has offered invoice factoring since 2004. The company launched which is an industry-leading web portal built for customers to manage their funding. Customers can stay up to date on their accounts from anywhere with real-time information by logging into their MyTriumph dashboard to view requests, payments, invoice searches, and to get immediate support from their customer service team.

Triumph offers an advance rate of up to 100%. Things such as the age of your business, yearly revenue, invoice examples, and more may be examined to determine your eligibility to be a Triumph customer. Business owners must also have business-to-business or business-to-government sales invoices to qualify.

Fees vary in size and form. In some cases, there are flat fees, and in others, there are variable rates. It depends on what you negotiate with Triumph. Triumph Business Capital works with the business to fit their budget and terms requirements. Once inside the portal as a client, you’ll have ready access to your invoice management fee structure.

Interested businesses may apply by phone or through a form on the company's website. Just like the other factoring companies, a specialist will be in contact after submission. Triumph says it provides same-day funding, but it could take longer in some cases.

The MyTriumph portal is robust and easy to use as you can see where your requests stand in the funding approval process. There is, however, no direct integration to sync your bookkeeping software, but you can download and upload files through an import and export process.

Triumph determines its invoice funding amount on a case-by-case basis. Triumph then recoups the money by collecting on your invoices.

Best for Trucking : RTS Financial

RTS Financial

 RTS Financial

  • Rates: Not disclosed
  • Funding Timeline: Within 24 hours
  • Banking Affiliation: N/A
Why We Chose It

We picked RTS Financial as the best invoice factoring company for trucking because it specializes in trucking and the freight industry. The company provides credit reports, fuel card programs, and trucking-related software with a mobile app.

Pros & Cons
  • Offers mobile apps and web browser apps for better integration with its platform

  • No hidden fees including ACH and invoice uploading

  • Gives fuel card discounts

  • Funds within 24 hours

  • Up to 97% of invoice value paid upfront

  • You don’t find out about rates until after submitting a full application

  • Must apply via contact form and then phone call

  • Has complaints about difficulties in getting out of contract and cancellation fees


RTS Financial, a factoring company founded in 1986, offers working capital solutions to businesses across multiple industries, but with a clear focus on the trucking industry. It offers apps for both web browsers and mobile and serves truck driving companies with same-day funding, a discount fuel card program, a solution for trucking companies operating in Mexico, credit reports for freight brokers, and comprehensive fleet management software.

The company does not disclose its pricing and rates until after you’ve applied. RTS does not charge hidden fees such as ACH fees or invoice-upload fees.

For the invoice factoring service, the company will advance up to 97% of the total amount within 24 hours of taking your application. 

Requirements for RTS will differ by industry (trucking and non-trucking) and if it is domestic or international among other possible factors.

To apply with RTS Financial, you need to submit the contact form online. A representative will then call you and take your application over the phone. In the application conversation, you’ll submit personal and business information, truck details, company ownership, and more. After the submission review, a representative from RTS Financial will contact you again to discuss your qualification and options. Funding can be as quick as 24 hours once approved.

The company provides a mobile and web application called RTS Pro to help clients access fuel discounts and available loads, upload invoices for factoring, access free credit data on brokers, and manage load history. They also offer a separate full-service trucking software called ProTransport that offers load management and tracking, two-way driver communication, and integrations with QuickBooks.

Funding minimum and maximum amounts are determined on a case-by-case basis depending on the company's full understanding of your financial picture. For Fuel Card allowances, RTS permits up to $2,500 per truck, per week. As customer invoices are paid, the remaining payments are made to the trucking business.

Best for Small Businesses : eCapital



  • Rates: 3.50% (lower for larger businesses)
  • Funding Timeline: Within 24 hours
  • Banking Affiliation: N/A
Why We Chose It

We selected eCapital as the best invoice factoring for small businesses because its comparatively low rates are helpful for smaller companies that need to retain more of their profit to survive. It works with small to medium-sized businesses and is a good option for businesses struggling to get invoice factoring.

Pros & Cons
  • Non-recourse factoring

  • Works with small and new businesses

  • Fast payment within 24 hours

  • Up to 90% advanced

  • Decent rates

  • Financing options could become expensive if customers don't quickly pay invoices


In its long history, eCapital has bought more than 12 million invoices and worked with 17,800 clients. With offices in California, Tennessee, and Ontario, Canada, eCapital's rates are relatively competitive. The company offers non-recourse factoring for bankruptcy protection and weighs the customer’s ability to pay far above the personal credit of the business owner.

Rates for small business factoring are 3.50% per invoice. For larger businesses and truck fleets the rate is likely cheaper. Its advance rate is up to 90%.

You may pay additional fees depending on your business and situation. Of course, additional services will likely carry additional fees too.

Starts can work with eCapital, which has no requirement for the length of time in business. It appears more concerned with the customer’s ability to pay the invoice than the credit history of the business owner as it says it works with those unable to get bank financing.

The process starts with a contact form which leads to a conversation with one of its representatives, and eCapital has the potential to advance your funds within 24 hours after signing the agreement.

The company offers its client portal login on nearly every page of its website, allowing you to easily view and manage your account as well as receive funds.

For small business factoring, the amount you receive must be less than $250,000.

Final Verdict

The online factoring company on our list backed by a bank is altLINE, helping it to offer lower rates to its business clients. This helped it earn our selection as best overall, as did its established history, which dates back to 1936. These lower fees make it best suited for large invoices, though businesses should not expect to receive funds within 24 hours, as is the case with many other factoring companies.

Compare the Best Factoring Companies

Company Rates Funding Timeline Banking Affiliation
Best Overall
As low as 0.50% May take a couple of days The Southern Bank Company
Triumph Business Capital
Best for Invoice Management
Vary Same-day N/A
RTS Financial
Best for Trucking
Not disclosed Within 24 hours N/A
Best for Small Businesses
3.50% (lower for larger businesses) Within 24 hours N/A
What Does Factor Mean in Financing?

Frequently Asked Questions

  • What Do Factoring Companies Do?

    Invoice factoring is a mechanism for businesses to inject cash into their accounts by selling their invoices to a third party at a discount. Companies get immediate cash for their unpaid invoices that are due within 90 days, instead of waiting for their customers to pay their financial obligations. This funding option is best for businesses that need immediate cash to pay bills or make a large purchase, such as inventory. Factoring is best used as a short-term funding option because fees can be expensive if customers take more than 30 days to pay their invoices.

  • How Much Does it Cost to Get a Factoring Company?

    A factoring company charges the business client a factor fee, which is the fee they charge for the advancement of funds. A good way to think of this fee is as a discount rate. For example, if the factor fee is 1.00% on a $30,000 invoice, then the fee is $300. Keep in mind, the 1.00% rate in this example is likely to grow to 2.00% on a weekly basis, and by the third month, expect 5.00%. Factor fees often scale from 0.75% to 5%.

  • Do You Need Good Credit for Factoring?

    Factoring may not make sense if you as a business owner have good credit, a low debt-to-income ratio, and don’t need the cash within a week. In this case, a long-term business loan or line of credit would be a better fit because the effective interest rate would be much lower. For this reason, factoring companies typically work with businesses that have less than perfect credit.

  • What Is the Difference Between Invoice Financing and Factoring?

    Invoice financing is a loan, and invoice factoring is a sale. A business that uses invoice financing gets a loan from a bank that lends on the value of outstanding invoices it has. You’ll need to make payments like any other loan, and your business will still be collecting payments from your customers per usual. Invoice factoring occurs when a business sells its invoices to a factoring company at a discount in exchange for immediate cash.

  • What Is a Good Factoring Rate?

    Our choice for best overall, altLINE, has factoring rates starting as low as 0.50%, but rates less than 1.00% are most likely only on invoices that customers will be paying within about week. The longer it takes invoices to be paid, the higher those rates will go. They can be as much as 5.00% for invoices that are outstanding for 90 days.


We reviewed 14 factoring companies to select the best five. We researched their factor fees, advance rate percentages, credit score eligibility requirements, minimum and maximum funding limits, invoice management processes, repayment terms, overall process duration, and bookkeeping software integration. As a result, we found four great factors that excel in different categories ready to help you with this long-standing business finance tool.