Breakout Capital

Best for: B2B companies with invoices for delivered work that want advances of up to 95% and a facility that can grow to $10 million, and that may later want a term loan from the same funder.

Not for: Businesses that want a published fee schedule, non-recourse terms in writing, or the cheapest money. A bank line or SBA loan costs less if you qualify.

Lender List verdict: Breakout Capital, now trading as Breakout Finance, is a direct funder that lets a growing B2B company start with invoice factoring and move into term loans or asset-based lending without switching providers. The trade-off is opacity: factoring fees are only described as 1% to 3% of invoice value, and recourse terms appear only in the contract.

Breakout Capital at a glance

Breakout Capital (Breakout Finance) factors invoices with credit limits up to $10,000,000 and lends $25,000 to $1,000,000 on term loans.

What is Breakout Capital (now Breakout Finance)?

Breakout Capital is a small-business funder founded in 2015 that renamed itself Breakout Finance in 2023 and now operates from breakoutfinance.com. It says it has helped businesses secure more than $1 billion, funds deals from its own balance sheet rather than brokering them, and lends nationwide.

It added invoice factoring in 2018 (FactorAdvantage) alongside its term loans. McLean Wilson is CEO and president.

How Breakout Capital invoice factoring works

Breakout Capital factoring buys your unpaid invoices and advances up to 95% of their value, with credit limits reaching $10,000,000.

• What qualifies: invoices for goods or services already delivered; Breakout checks with your customer that the work was accepted before it funds.
• Funding speed: Breakout says it can fund within 72 hours; its FAQ puts first-time setup at about 4 to 5 business days when documents arrive promptly.
• Collections: your customer pays Breakout directly, so you should expect your customers to be told about the assignment.

How the funding cycle works

Breakout Capital pays the advance first and the remainder, less fees, once your customer settles.

1. You deliver the work, invoice it and upload it to Breakout's portal.
2. Breakout confirms delivery with the customer and pays the advance (up to 95%).
3. Your customer pays Breakout on normal terms.
4. Breakout releases the balance minus its fee.

Breakout Capital advance rate, factor fee, and recourse

Breakout Capital advances up to 95% of an invoice and says its factoring fees usually run 1% to 3% of invoice value. It does not say whether that percentage is per 30 days or per invoice, and it does not publish whether facilities are recourse or non-recourse. The agreement lists every fee on its first two pages.

• Charged: the factoring fee; other fees, if any, appear in the agreement
• Not published: minimum volume, contract length, termination terms, recourse

Worked example: factor a $100,000 invoice at a 90% advance and you receive $90,000 up front. Assuming a 2% fee per 30 days, the midpoint of Breakout's range, a customer who pays in 45 days costs you $3,000, and you get a $7,000 rebate. That is about 27% APR on the cash you actually used. If 1% to 3% is the whole fee for that invoice instead, the cost is $1,000 to $3,000, or about 9% to 27% APR.

Breakout Capital term loans and other products

Breakout Capital term loans run $25,000 to $1,000,000 over 6 to 24 months, priced from 1.24% per month.

• Payments: daily, weekly, bi-monthly or monthly
• Origination fee: Breakout's FAQ uses 2.5% as its example, deducted from the loan proceeds
• Early payoff: no penalty, and a discount of up to 100% of remaining interest if you have no missed payments, no stacked financing and no default
• Interest-only loans: loans of up to $500,000 that charge only interest for the first 90 days, then switch to weekly payments; Breakout markets these for purchase orders
• Asset-based loans: a term loan or revolving line sized to receivables, equipment and inventory

If the 1.24% monthly rate applies to the original balance, a $100,000 six-month loan with a 2.5% origination fee costs about $9,940, roughly 38% APR on weekly payments.

Breakout Capital requirements

Breakout Capital factoring mainly requires invoices for delivered work; its term loans require 600 FICO, one year in business and $25,000 in monthly revenue.

Pros and cons

Breakout Capital's strengths are a 95% advance and a path from factoring to bigger loans; its weakness is unpublished pricing detail.

Pros

• Advances up to 95% of invoice value
• Factoring limits up to $10,000,000
• Term loans, asset-based and interest-only loans from the same funder
• Early-payoff discount of up to all remaining interest on term loans
• Trustpilot 4.3/5 from 184 reviews

Cons

• Fee period and recourse terms are not published
• First factoring setup can take 4 to 5 business days
• Term loans need a personal guarantee and a blanket lien
• Your customers pay Breakout directly, so factoring is not confidential

Breakout Capital alternatives on Lender List

The closest Breakout Capital alternatives are FundThrough (published 1.9% per 30 days), Riviera Finance (non-recourse) and SouthStar Capital.

• FundThrough — published fees from 1.9% per 30 days and no volume commitment
• Riviera Finance — non-recourse factoring with advances up to 95%
• SouthStar Capital — factoring plus PO financing, startups accepted
• OnDeck — online term loans up to $400,000
• Browse all invoice factoring companies on Lender List

Frequently asked questions about Breakout Capital

Breakout Capital is an active direct funder, now named Breakout Finance, offering factoring up to $10,000,000 and term loans up to $1,000,000.

Is Breakout Capital Legit? Yes. Breakout Capital has funded businesses since 2015, says it has helped secure more than $1 billion, and holds a 4.3/5 Trustpilot score from 184 reviews. Merchant Maverick reports an A+ BBB rating with accreditation, and we found no regulatory actions.

Is Breakout Capital the Same as Breakout Finance? Yes. Breakout Capital rebranded as Breakout Finance in 2023 and now operates at breakoutfinance.com. The products carried over: invoice factoring, term loans, asset-based loans and interest-only loans. Older reviews and press releases may still use the Breakout Capital name for the same company.

Is Breakout Capital Out of Business? No. As of October 2026 Breakout Finance, the former Breakout Capital, is lending: its site offers factoring and term loans, and Trustpilot shows reviews from July 2026. The Breakout Capital name was retired in the 2023 rebrand, not because the business closed.

Is Breakout Capital Recourse or Non-Recourse? Breakout Capital does not say. Neither its factoring page nor its FAQ states whether you must buy back invoices your customer fails to pay. Ask for the answer in writing at pre-approval, and check the agreement before signing, since recourse decides who absorbs a customer's default.

Will My Customers Know I'm Factoring? Yes, in most cases. Breakout Capital's process has your customer pay Breakout directly, and it contacts customers to confirm the goods or services were delivered before funding. If confidentiality matters, raise it before you sign; Breakout does not advertise a non-notification option.

Where Is Breakout Finance Located? Breakout Finance lists two offices: 1775 Tysons Blvd in McLean, Virginia, and 701 E Bay St in Charleston, South Carolina. It funds businesses across the country; United Capital Source says that covers all 50 states and Washington, D.C., so location is not a barrier.

Last verified 2026-10-27. Pricing and terms are provider-stated or third-party-reported and vary by offer; confirm with the lender before applying.