What is a Factoring Company?
Factoring companies are third-party financing companies that offer businesses capital in exchange for the collection of their unpaid invoices. They help business owners open up cash flow to cover business expenses while they wait for customers to pay up.
Factoring companies charge businesses owners for this service in the form of a factor fee. For a small business seeking quick financing to improve cash flow, invoice financing via a reputable factoring company can be a smart move.
Most commonly, invoice factoring is done by factoring companies that buy your receivables at a discount, giving you instant cash.
The following is a list of 10 best factoring companies for small businesses that offer the minimum invoice qualification requirements, advance rate, invoice financing, invoice discounting and are among the largest invoice factoring companies in the world:
10. RMP Capital
RMP Capital provides Factoring and Purchase Order Financing to small and medium-sized businesses both domestically and internationally. Also, Working Capital, Bonding, and Funds Control to Contractors and offers an excellent factoring accounts receivable services.
Priding itself on creative funding services aimed to provide individual business’ needs, RMP Capital works with government contractors, trucking companies, and small businesses on a regular basis.
Applications and accepted proposals can be completed in about a week, offering up to 90 % of the capital in invoice financing. With online tracking, RMP Capital does not turn away firms with a history of losses, poor credit or back taxes, working with those companies to find creative solutions for their financing needs.
9. RTS Financial
RTS Financial provides factoring solutions that help companies of all sizes build more cash flow and grow at a faster pace. With 20 years of factoring experience and same-day monetary transfers, RTS offers highly competitive rates and scalable funding as each business grows and requires more funding.
In addition, free credit analysis and collections make this invoice factoring company one of the best options for firms just beginning to try this method of factoring. To assist all enterprises, RTS Financial customers receive daily credit alerts and real-time days-to-pay information on all outstanding accounts.
They offer Competitive advance rates of as much as 97% on your invoices and offers same-day funding, receive payment on each invoice within 24 hours or less. With unlimited access to free credit ratings and days-to-pay information on over 50,000 shippers and brokers.
8. Universal Funding
Universal Funding, have been providing personalized capital funding programs nationwide since 1995. The mission of Universal Funding is to provide low rates and exceptional service so that all businesses can receive the funding that they need to be successful.
With easy access to funding reports, including the ability to check A/R balance, this factoring company offers rates starting at just 0.55 % for up to 5 million dollars. In addition to invoice factoring, payroll and purchase order financing is available.
Universal Funding indicates that funding can be approved and provided in as little as two days, and the company’s over 75 years of combined experience provides 24/7 online and telephone customer support. They aim to bridge the gap between invoicing and payment with immediate cash. We are a team of real people addressing real problems and providing real solutions.
Lendvo is an alternative lender who specializes in financing digital businesses and digital Intellectual Property assets based on the value of a website. Specializing in providing aid to digital businesses and online enterprises that need assistance getting their companies off the ground. By providing value for high search engine rankings and website visitors, Lendvo creates custom loans for each specific digital business’ needs.
Approval can be completed within 12 hours after the easy application process has been completed, and those businesses can receive loans for amounts ranging from $5,000 to $1,000,000 in size.
Because Lendvo understands that online business can be variable, terms, rates, and repayment plans are flexible and tailored for each firm no matter their prior debts or FICO scores. Lendvo prefers to work with firms that have demonstrable growth potential.
To grow your digital business, Lendvo offers short & medium term business loans. Their loan programs usually last between 1 and 18 months and offer loans that can be either asset-backed, based on your business’s cash flow or a combination of both.
6. TCI Business Capital
Since 1994, TCI Business Capital has provided best-in-class factoring solutions to thousands of small to midsize companies all across North America.
TCI Business Capital same-day funding solution gives businesses access to working capital that is normally tied up in their receivables.
In addition to working capital at low rates, TCI Business Capital also provides factoring services that include treasury services, credit analysis, and risk assessment services that offer reliable cash flow, credit histories and payment trends of potential customers, enabling TCI clients to take on new customers with confidence.
TCI Business Capital differentiate themselves from others by offering month-to-month agreements, low rates, competitive advances, and free back-office support including credit checks, risk analysis, accounts receivable management, and 24/7 online reporting.
5. Riviera Finance
Founded in 1969, Riviera Finance is nationally recognized in the United States as a leader in business financing. Riviera Finance provides full-service, non-recourse invoice factoring to growing companies. This invoice factoring company provides simple, flexible and effective funding and account monitoring within 24 hours of verification.
Riviera Finance provides up to 95 % of the invoice funding with proper paperwork submitted, as well as credit services and receivables management. Firms interested in participating in all of these services will receive a full-value package specially designed for their unique financial needs.
Riviera Finance maintains offices throughout North America to provide face-to-face service and expert financial solutions to small and medium-sized businesses. Currently serving more than 1,400 clients, Riviera holds an excellent credit rating, has shown consistent, positive earnings and maintains a diversified capital base.
4. Triumph Business Capital
Triumph Business Capital (formerly Advance Business Capital), launched in 2004 by transportation and financial executives to provide financing solutions for small trucking companies, now serves industries including oil and gas, manufacturing, staffing, security, wholesalers, distributors, business services and transportation.
While it started as a factoring company for trucking businesses, it’s an in-depth understanding of many more industries is a distinguishing feature of the company. Approved clients submit their invoices to Triumph Business Capital, and in less than 24 hours, 90 % of the funds have been directly deposited into the clients’ bank accounts.
Most rates range from 1 to 4 %, but these are variable since Triumph is part of a large bank. Other possible services with Triumph Business Capital include back office solutions, asset-based lending and equipment financing. With company leaders part of the invoice factoring business for more than 30 years each, firms appreciate this Dallas-based management company for its very capable staff.
Fundbox is a technology company focusing on helping small business owners overcome occasional short-term cash flow gaps. Founded in 2013, the service uses big data analytics, engineering, and predictive modeling to help optimize cash flow for small businesses and freelancers with outstanding invoices.
Fundbox has no application or approval process, its free accounts are completed quickly and easily, making funding nearly automatic.
In addition, Fundbox provides 100 % of the invoice amount, offering funds on current invoices rather than those that are past-due. Fundbox then collects clearing fees to provide the funds directly into clients’ bank accounts, making it ideal for small businesses hoping to grow and become more independent.
Dealstruck helps small businesses find loans and other financing options in amounts up to $500K. They offer a range of financing products, including its A/R product, the Asset-Based Line of Credit (ABL).
Submit your accounts receivable and A/R aging to Dealstruck; Dealstruck calculates a “borrowing base” (total eligible collateral) and advances you a line of credit (usually 80 to 85 % of the base).
Dealstruck offers to finance from $50,000 to $250,000. However, Dealstruck offers its ABL to borrowers generating $20,000 to $500,000 monthly whose businesses are profitable, have annual sales of at least $250,000 and are over a year old. By working with clients who are frequently denied by banks and traditional lenders, Dealstruck completes the application process and provides funding in as little as three days.
BlueVine is one of the largest factoring companies that gives small businesses a flexible line of credit to run their business or an advance on their invoices to meet payroll, buy supplies or grow. BlueVine factoring is a 100 % online, a paper-free solution that offers simple, transparent terms and a fast, convenient funding solution to help business owners who have irregular cash flow or long payment cycles.
There is no paperwork, no obligation, and no hidden fees. With BlueVine, you can access the funding you need, when you need it. BlueVine’s online solution gives small businesses an advance on their invoices, letting them get paid on day one for invoices due in 15 to 90 days.
Trusted by thousands of small business across the United States, BlueVine creates financing to fit each business with credit lines for invoice factoring of up to 250,000 dollars.
Signing up for services with BlueVine provides immediate and free access to a business dashboard from which users can select which invoices to fund and receive funds with a short turnaround time. Rebates at rates up to 90 % are distributed on the same day, and firms can sync their accounting software with BlueVine to keep all their records in one location.