Want to jump straight to the answer? The best invoice factoring company for most people is Resolve or SMB Compass.

Unpaid invoices are part of running a business, no matter the size. But for small business owners, it’s an especially frustrating reality with potentially devastating consequences.

If your business has unpaid invoices and you’re low on cash, invoice factoring can be a solid solution.

The 9 Best Invoice Factoring Companies of 2023

How to choose the best invoice factoring company. Quicksprout.com's methodology for reviewing invoice factoring companies.

Below you’ll find an in-depth review of each company that made my list. The reviews are followed by a brief guide that highlights the key criteria you should be thinking about as you assess your options.

Choose the one most suited to your needs, and start getting paid for the work you did instead of spending time chasing people down.

Best Invoice Factoring Companies Reviews

Resolve — Best for offering net terms to business customers

Resolve logo

Resolve is a unique non-recourse invoice financing company that helps B2B merchants, wholesalers, and distributors offer net terms and assumes the payment risk for its customers. They currently work with more than 1000 companies, including Linus Venice, ConEquip, and Zark LED.

Resolve calls itself net terms-as-a-service rather than a traditional factoring company. Unlike other non-recourse factoring services, Resolve takes on the risk of your customer’s non-payment. With their “quiet” credit check process that does not affect business credit scores, it promises your business will not be on the hook for open invoices.

Resolve home page

Resolve makes decisions on net terms and credit limits quickly so your business can keep moving. And offering net terms often allows for larger orders, while your credit line can go up to $1 million.

Resolve offers immediate payment for up to 90% on approved invoices (within 1 day!) while allowing their customers to give 30, 60, and 90-day net terms to all of their customers, which helps the company expand sales and grow their businesses. 

To get advance payment, there is a list of criteria the company and invoice must meet:

  • The customer’s business is based in the US
  • Resolve has done a credit check and approved the customer
  • The customer has accepted your product/service
  • The invoice can be paid by one of Resolve’s approved payment methods
  • The payment term is 90 days or fewer
  • The invoice due date is at least one week from the date of the advance payment request

Customers can make payments through Resolve’s white-labeled (your branding) online payment portal via credit cards, ACH transfers, wire transfers, and even checks. And as the customer, you get an easy-to-use accounts receivables dashboard to see what is happening at any time. Plus Resolve integrates with QuickBooks, Magento, and WooCommerce.

Resolve is transparent in its fees, which are a flat 2.61% for 30-day net term invoices with a 90% advance. 

You can try Resolve before committing with a 14-day free trial.

SMB Compass — Best Invoice Financing Up to $10 Million

SMB Compass logo

SMB Compass is known for providing a versatile selection of lending options to businesses with different needs. 

This company really stands out when compared to other factoring options, due to the amount of financing it’s willing to provide small and medium-sized businesses. SMB Compass has provided over $250 million to more than 1,250 businesses in its history, and the company offers generous invoice financing ranging from $25,000 to $10 million.

Not only can you get a massive cash infusion, but you can get it quickly, too. SMB Compass offers funding as fast as 24 hours, with rates starting at 12%. Term lengths range from six to 24 months. 

Loan options from SMB Compass

Apply at SMB Compass to get cash fast for unpaid invoices.

To qualify for invoice financing from SMB Compass, you need to be in an industry with longer billing cycles. Typically, they prefer to work with businesses in spaces like:

  • Manufacturing
  • Transportation and logistics
  • Staffing and distribution
  • B2B retail
  • Staffing
  • Technology

This offering from SMB Compass tends to work best for invoices with net-60 terms or longer. Progress billing, pre-billing, and milestone billing are not eligible for invoice financing through SMB Compass. 

Fill out an online application to get started. It’s free to apply, and it won’t affect your credit score. 

OTR Solutions — Best for Freight Companies

OTR Solutions logo

OTR Solutions, formerly OTR Capital, offers invoice factoring designed specifically for freight companies. You can expect rapid, respectful, and straightforward service from a company that’s been helping businesses in transportation since 2011.

Owner-operators, fleets, and freight brokers will be able to get paid on outstanding invoices quickly. OTR Solutions offers true non-recourse factoring, which means no chargebacks and same day funding.

Working with OTR Solutions doesn’t change your existing relationships, they just work on the back end to get you working capital when you need it.

OTR Solutions page for factoring services

OTR Solutions also offers a range of relevant services that general factoring companies do not. 

The Capital Fuel Card, for example, is accepted at more than 8,000 locations across the United States, and saves truckers up to $1.70 per gallon. You can also use the fuel card to withdraw money from ATMs, which is great for paying lumpers and dealing with unforeseen expenses on the road. 

This flexibility is great for owner-operators, and OTR Solutions provides additional features and controls for fleets that need multiple cards.

Some of their other services include:

  • Fuel advances
  • OTR Solutions mobile app
  • Direct-to-debit funding
  • Free broker checks
  • CSA safety score monitor
  • Professionally designed freight company websites

Unlike other businesses that provide invoice factoring, OTR Solutions is truly dedicated to understanding and serving the needs of transportation companies. 

So when you call in with a question, you are always going to be speaking with someone that understands the specific challenges faced by truckers and freight companies.Secure the service, tools, and support you need today. Get started with OTR Solutions.

eCapital Commercial Finance — Best Non-Recourse Invoice Factoring

eCapital logo

eCapital Commercial Finance provides a wide range factoring solutions and lending services for varying business needs. They offer invoice factoring in addition to freight factoring, payroll funding, asset-based lending, lines of credit, and more. 

But what makes this organization unique compared to other factoring companies on the market is its non-recourse invoice factoring options.

eCapital Commercial Finance home page

With non-recourse factoring, you’re not completely on the hook to pay back the loan if the customers fail to pay the invoices.

eCaptial Commercial Finance assumes the risk. This means your personal credit score and credit history won’t be considered in the approval process. Instead, the approvals are based on the creditworthiness of your clients with outstanding balances. 

This is the perfect solution for any organization that wants to get funding without assuming the liability of uncollected bills. 

Keep in mind, it’s not always easy to qualify. Your business must earn a minimum of $30,000 in sales per month to be considered. This qualification criteria is a bit higher than other options on the market. 

eCapital Commerce Finance also has solutions for purchase order financing and working capital loans for government contractors. Get started here to learn more.

altLINE — Best for Low Fees

altLINE logo

altLINE is a reliable and trusted invoice factoring service that stands out for their low fees.

They’re especially unique because they’re a direct source of funding, not a middle man. As a division of the Southern Bank Company, altLINE doesn’t need to charge additional borrowing costs like third-party providers. Business owners can benefit from these savings because they won’t nickel-and-dime you with fees.

There’s also no application fee, which means you save even more money when using their service.

altLINE home page

In addition to invoice factoring, altLINE offers accounts receivable financing. While the two terms are often used interchangeably in the world of small business lending, they are not the same.

Invoice factoring offers great flexibility for business owners. Accounts receivable financing has stricter guidelines related to the credit profile. With that said, AR financing will usually provide businesses with preferred financing terms.

altLINE will deliver up to 90% of qualified unpaid invoices for factoring.

Common industries for invoice factoring with altLINE include:

  • Distribution
  • Consulting
  • Food and beverage
  • Janitorial services
  • Professional services
  • Facility services
  • Textile and apparel
  • Wholesale
  • Oil and gas
  • Staffing
  • Manufacturing

As a federally regulated bank, altLINE is 100% transparent about their fees and term structures. Factoring rates start at just 0.50%. You’ll also benefit from a fast approval process without an application fee.

In addition to invoice factoring and accounts receivable financing, altLINE also has asset-based lending for businesses. This is another way to borrow money against your receivables.

Triumph — Best for Construction and Transportation

Triumph logo

Triumph, formerly Triumph Business Capital, is a factoring company that’s preferred by construction and transportation companies—and it’s no surprise why.

Triumph understands the complexities of construction timelines, project funding, freight brokering, working capacity, and how cash flows throughout their businesses.

Triumph’s great service led to them being awarded the Preferred Provider status by the Transportation Intermediaries Association.

It doesn’t matter if you’re a solo operation or if you have a fleet of hundreds of trucks—they provide you with a straightforward and speedy process to get money in your hands as soon as possible.

A few other services that they cater to include:

  • Trucking
  • Staffing
  • Oil and gas
  • Government contractors
  • Freight brokers

Another standout feature is their easy-to-use web portal. The dashboard and process is a simple way to manage your funding. You can always stay up to date with your account and information, no matter where you are.

You’ll also have direct access to support from the Triumph team. They also offer a wide range of financial services along with invoice factoring:

  • Asset management
  • Commuting banking
  • Asset-based lending
  • Equipment financing
  • Insurance

Think of it as your financial one-stop shop.

Breakout Capital — Most Flexible Payments & Qualifications for Small Businesses

Breakout Capital logo

Breakout Capital offers a very flexible invoice factoring solution that’s great for new and small businesses alike.

More specifically, they offer a very flexible payback schedule that gives small businesses more wiggle room when it comes to when they have to pay Breakout Capital back. These come in the form of daily, weekly, or monthly scheduling options. Not a lot of invoice factoring companies do this.

Breakout Capital home page

They also offer a great service called “FactorAdvantage.” It’s a customized solution for businesses that don’t meet qualifications from other lenders and factoring companies. That’s great for startups.

Think of it as a combination between invoice factoring and a small business loan.

Here are some of the top advantages of this service:

  • Fund receivables before invoices are ready to factor
  • Increase your over-advance maximum amounts
  • Access to short-term bridge loans
  • Remove merchant cash advance programs or liens
  • Forecast cash flow with AI technology

Breakout Capital is perfect for startups since the approval process is dead simple. There’s no minimum FICO score required, no minimum monthly revenue requirement, and no minimum time in business.

With all of that said, Breakout Capital’s invoice factoring rates are a bit higher than some of the other companies we’ve reviewed. Invoice factoring starts at 1.25% per month.

For startups that want to borrow up to $500,000 using unpaid invoices, Breakout Capital is a top company for you to consider. FactorAdvantage is unlike any other product I’ve seen on the market today.

TCI Business Capital — Best for Month-to-Month Contracts

TCI Capital logo

TCI Capital is great for businesses looking for flexible monthly contracts.

That’s because the amount they charge you changes month-to-month depending on the volume of your invoices. That means if you sell more and you have more invoices, you get cheaper factoring fees.

While some other companies do this too, TCI Capital stands out for doing this monthly as opposed to other companies that might only change your rates once a year.

TCI Business Capital home page

B2B organizations that use TCI Capital for invoice factoring typically fall into one of the following categories:

  • Staffing
  • Telecom and wireless
  • Heavy construction
  • Renewable energy
  • Government contractors
  • Utility and pipeline contractors
  • Trucking and freight
  • Manufacturing
  • Environmental services
  • Oilfield services

TCI Capital adds a personal touch to their invoice factoring services. They encourage you to talk to a representative that will help you find the best solution for your current situation and needs. TCI Capital also ensures that the solution works well for your customers.

Like most companies, TCI Capital’s factoring fees are based on volume. So it’s a better option for those of you with higher volumes if you want access to preferred rates and fees.

The TCI Capital website has an awesome tool to help you calculate your factoring costs.

Choose your desired advance rate of 70%, 80%, or 90%, and enter your average monthly sales.

Select your customer payment terms (net 30, 60, 90, or 120), and the tool will automatically calculate your fees.

For example, let’s say you average $10,000 per month with net 60 terms on your invoices. If you want 90% of cash in advance, the factoring fee is $200.

With TCI Capital, you’ll get fast approvals, simple onboarding, and month-to-month terms. They offer high advances and same-day funding to provide you with reliable cash flow.

Riviera Finance — Best for Guaranteed Credit

Riviera Finance logo

Riviera Finance is another great non-recourse invoice factoring service. Where they stand out though is their credit guarantee.

They offer a credit management service that guarantees the credit on all of your factored invoices. That means if an invoice is unpaid, Riviera Finance becomes the credit manager and assumes the risk.

Riviera Finance home page

They’re also great if you need cash quickly. Riviera offers some of the quickest turnaround rates in the industry, with guaranteed 24-hour funding.

Depending on your business type, industry, and clients, Riviera Finance will fund up to 95% of qualified invoices. You’ll have complete flexibility for funding on-demand.

As a result, no debt is created on your end and the company protects you from bad debt on all of the invoices that they factor.

Riviera Finance has an exceptional receivable management system as well. They can handle the following AR tasks:

  • Maintain an efficient process with your clients
  • Automated invoice uploads
  • Mailing and processing for all invoices
  • Processing and posting of invoice payments
  • Real-time alerts related to returns, disputes, or payment issues
  • Check the status of outstanding invoices
  • Custom management reports

You’ll benefit from instant access 24/7 to all of your account receivable information through an online account dashboard.

How to Choose the Best Invoice Factoring Company For Your Business

Invoice factoring can be a solid solution for your business to help overcome cashflow issues caused by late paying customers. By getting your money quickly, you’ll be able to reinvest that income and maintain an emphasis on growth.

But it’s important that you find the right invoice factoring company to meet the needs of your business.

There are certain factors you should look for when you’re evaluating an invoice factoring service. This is the methodology I recommend for narrowing down your options.

Fast Funding

A good invoice factoring service gets cash back in your pocket quickly and painlessly. The best services provide quick approvals and turnarounds.

Many invoice factoring companies boast approvals “as fast as 5 minutes” upon receiving a qualified invoice.

Other factoring services such as altLine take a little bit longer—around four days to complete. That can be a looonng time in certain circumstances.

Depending on where you are with your company, you might want money quicker in order to address short-term needs or lucrative investment opportunities.

You also want to check with the factoring company to see how long it takes for funds to be available. Ideally it will be within a day of approval, but sometimes can take up to three days.

Remember that you’re factoring because you want cash quickly. So be sure to check to see how long the approval and funding process takes with each factoring service.

Industry-Specific Factoring

Some invoice factoring companies specialize in specific industries. These can be lucrative as they know the proper procedures to obtain payment from your unpaid invoices.

These factoring companies understand your industry and business. They’ll help the factoring experience go as smoothly and optimally as possible because of that.

For example, Triumph Business Capital helps small and mid-sized businesses in transportation (e.g. trucking and freight brokers), energy (e.g. oil and gas), and government (e.g. contractors).

TCI Capital is another great factoring company that focuses on B2B organizations such as telecom, manufacturing, utility, and staffing.

Look for a factoring company that knows your industry to ensure the best experience.

Factoring Fees

A lot of business owners see the short-term benefits of invoice factoring (i.e. upfront cash). But they overlook the fees that go with it.

Some invoice factoring companies lure you in with low factoring fees, but then hit you with additional fees like:

  • Application fee
  • Service fee
  • Renewals
  • Transfers
  • Early termination
  • Origination fee

I recommend an invoice factoring company that offers transparent pricing. You should only have to pay the factoring fee, without any of these additional charges or hidden fees.

Recourse vs Non-Recourse Factoring

What happens if one of your customers fails to pay an invoice to the factoring company? Depending on the company you choose, you could be responsible for this debt.

That’s because invoice factoring comes in two forms:

  • Recourse factoring means that if your client doesn’t pay on their invoice to the factoring company, then you are on the hook financially for the invoice. The trade off is the fees are much lower.
  • Non-Recourse factoring means that the factoring company assumes some of the risk. The fees are higher, but you’re at less of a risk of losing out on all of your unpaid invoice. This is a better option for businesses who can’t risk a client withholding payment.

It’s important to note that using non-recourse factoring does not completely absolve you from potential risk. You need to fully understand situations where the factoring company accepts the risk and where you remain on the hook for the risk.

For example, if you are dealing with a client that has a poor credit rating, the factoring company may leave the risk with you. 

If the factoring company is putting significant stipulations on when it will accept the risk, you may want to stick with recourse factoring and avoid paying the extra fees when you are taking on the majority of the risk.

No matter what, you want to make sure that the invoice factoring company you choose does everything that they can to try and attain payment from your client. You don’t want them sitting on the invoice, making no attempt to reach out, and then ding you when your client doesn’t pay.

When researching companies, verify what steps they’ll take to collect. Make sure their outreach is polite (you don’t want your customer to hate you, after all) but firm.

Factoring Flexibility

Flexibility on the requirements and types of invoicing is great when it comes to these companies. As such, you’ll want to find a factoring company that doesn’t try to lock you into a strict contract while also giving you the credit you need.

Some of you may only want to factor one or two invoices. Doing this on-demand is known as “spot factoring.”

You’ll have complete control over which invoices are factored and when it happens. You’ll also have more of a say in your term length, which is always nice.

Some invoice factoring companies require “whole ledger factoring.” In this case, you won’t have as much control. Generally speaking, spot factoring is the preferred choice for business owners.


If you’re looking for an invoice factoring company that you can trust to help turn your unpaid invoices into cash ASAP, then you’re going to want to limit your search to companies that are established. 

The best way to verify whether a factoring company is legitimate is by choosing one that is affiliated with the International Factoring Association (IFA)

Screenshot of International Factoring Association homepage

As members of IFA, the companies must abide by the association’s strict code of ethics and practices. You can quickly and easily search for a potential invoice factoring company’s name on the IFA website.

Best Invoice Factoring Companies: Your Top Questions Answered

The Top Factoring Companies in Summary

Invoice factoring helps businesses turn unpaid invoices into cash today. Top invoice factoring companies like OTR Solutions and Resolve will help you get paid as soon as possible.

Don’t let your non-paying customers get in the way of growing your business. Act now, and take control of your cash flow.