Invoice Factoring & Financing
If you've done the work but customers take 30, 60 or 90 days to pay, you can turn those unpaid invoices into cash now. Here's how invoice financing works, what it costs and how to choose.
Your options
Invoice factoring. You sell unpaid invoices to a factoring company. It advances most of the invoice value up front, collects from your customer, then pays you the rest minus its fee.
Accounts receivable financing. You borrow against your unpaid invoices but keep collecting from customers yourself.
Business line of credit. Draw cash to cover the gap and repay when customers pay you. Often cheaper if you qualify.
Purchase order financing. If the problem is paying a supplier to fill a big order, PO financing pays the supplier for you.
Recourse vs. non-recourse factoring
- Recourse: if your customer doesn't pay, you buy the invoice back or replace it. Usually cheaper.
- Non-recourse: the factor takes on the risk if your customer can't pay, usually for a higher fee. It often covers only a customer going out of business, not disputes. Read exactly which situations are covered.
What it costs
Factoring fees are usually charged as a percentage of the invoice for each period it's outstanding, such as every 30 days. A small-looking monthly fee adds up: a 3% fee every 30 days is about 36% a year, and more if you get only 80% to 90% of the invoice up front. Also check for:
- The advance rate (how much of the invoice you get up front)
- Application, setup, monthly minimum or termination fees
- Whether you must factor all your invoices or can choose
- How long the contract lasts and how to cancel
Lenders on Lender List
Invoice factoring: Riviera Finance, FundThrough, Star Funding
Factoring and purchase order financing: Liquid Capital
Purchase order financing: SouthStar Capital, King Trade Capital, Star Funding, Bridge
Lines of credit: Bluevine, Fundbox
Before you sign
- Ask for every fee in writing, with an example on one of your real invoices.
- Find out how the factor will contact your customers, since it affects your relationships.
- Check for a long contract term or volume minimums.
- Compare the yearly cost with a line of credit using our APR calculator.
New to these terms? Read lending terms explained.
Compare invoice factoring and A/R financing companies
| Lender | Type | Amounts | Cost | Funding speed |
|---|---|---|---|---|
| 1st Commercial Credit | Direct funder (factoring and PO financing) | PO orders from $100,000; facilities up to $10 million | Factoring 0.69% to 1.59%; PO 1.5% to 5% per 30 days | PO pre-approval in 24 to 48 hours; setup 5 to 10 business days |
| altLINE (The Southern Bank) | Bank-owned invoice factor (division of The Southern Bank Company) | $30,000 to $5,000,000 (factoring) | 0.75% to 3.5% of the invoice; about 24% simple annualized in our example | Advance within 24 hours |
| Apex Capital | Non-bank freight factoring company | No published maximum; no monthly minimum volume | Not published; about 2% flat per invoice (third-party) | Same-day or next-day; minutes via blynk |
| Asset Commercial Credit | Direct factor and A/R lender; broker for other loans | From $10,000 in receivables; maximum not published | Quote-only; est. 35% to 80% APR | Approval within 24 hours; funds in 24 to 48 hours, often same day |
| Breakout Capital | Direct funder (invoice factoring, term loans, asset-based and interest-only loans) | Factoring limits up to $10,000,000; term loans $25,000 to $1,000,000 | Factoring fees 1% to 3% of invoice value; term loans from 1.24% per month | Factoring: first funding about 4 to 5 business days, then within 72 hours; term loans the same day you sign, at the earliest |
| Charter Capital | Direct invoice factoring company (not a broker) | Advance typically 90%, up to 98% | 1% to 3% of invoice value | Approval within 24 hours; same-day advances |
| Clarify Capital | Loan marketplace, not a direct lender | $5,000 to $5,000,000, depending on product | APR from 6%; cash-advance factor rates 1.08 to 1.45; no fee from Clarify | Funds in as little as 24 hours; 1 to 2 days on most products; SBA 30 to 90 days |
| Crestmark (Pathward) | Bank (Pathward, N.A., FDIC-insured); direct lender | Lender does not publish; past facilities $150,000 to $22.5 million | Quote only; factoring fees of 1% to 3% of invoice value (third-party) | First funding in about 5 days to 3 weeks; then same day or next day (third-party) |
| Eagle Business Credit | Non-bank invoice factor (direct funder) | $1,000 to $5,000,000 funding lines | Fees from 1% (under $50,000) or 2% (over $50,000) | First setup about 48 hours, then under 12 hours |
| eCapital | Non-bank factor and asset-based lender (direct funder) | Single invoices up to $30 million (NerdWallet); facilities $5 million to $250 million | 1% to 5% or more of the invoice; quote only | Freight within an hour; invoices typically 24 to 48 hours after approval |
| Factor Funding | Private factoring company (not a bank) | PO financing $100,000 to $10 million per order | About 5% of funds used (PO); 1% to 3% per 30 days (factoring) | Decision in 24 to 48 hours; PO funding averages 7 to 10 days |
| FundThrough | Direct invoice factor (non-bank) | No stated cap; custom pricing above $1 million outstanding | 1.9% to 2.9% per 30 days, 100% advance minus the fee (third-party: 2.75% to 8.25%) | First funding in days; within 24 hours after that |
| Gibraltar Business Capital | Non-bank senior secured asset-based lender (direct lender) | $10 million to $100 million (core $25 million to $75 million per SFNet) | Lender does not publish; one disclosed facility: SOFR + 5.50% plus fees | Lender does not publish |
| Hilldun Corporation | Direct factor: credit protection, collections and receivable financing | Lender does not publish; line grows with your receivables | Lender does not publish; apparel factors typically charge 1% to 5% per 30 days | Advances right after you ship and invoice |
| Liquid Capital | Non-bank factoring franchise network | $20,000 to $20 million per funding ($10 million on other pages) | Not published; third-party: 2% to 4% per 30 days; up to 85% advance | As quickly as one day |
| Mazon Associates | Direct factoring company | $10,000 to $3 million (FactoringClub) | 2% to 5% fee plus 1% per month | Same day after a 3 to 5 business day setup |
| OTR Solutions | Non-bank freight factoring company (direct factor) | No monthly minimums; no volume caps (third-party) | Not published; 2.5% to 3% recourse, 3% to 4% non-recourse (third-party) | Instant, 24/7/365; same day on approved invoices |
| Riviera Finance | Non-bank invoice factor | $5,000 to $2 million credit lines (third-party) | Not published; about 2% per invoice (third-party; basis not published) | Within 24 hours of verification; first funding in 4 to 7 working days |
| Rosenthal & Rosenthal | Direct, non-bank factor and asset-based lender | Up to $40 million (press releases: $500,000 to $30 million+) | A fee plus interest; rates not published | Lender does not publish |
| RTS Financial | Non-bank freight factor (buys invoices outright) | No set cap; limits follow your customers' credit | Fee not published; about 26% to 38% simple annualized in our example | Same day; within 24 hours |
| Scale Funding | Invoice factoring division of Scale Bank (direct funder) | Lines $50,000 to $10 million | Lender does not publish; about 2% per 30 days (Fit Small Business) | Same-day once approved (Fit Small Business: 1 to 4 days) |
| SouthStar Capital | Private direct lender (specialty finance) | $50,000 to $14 million in case studies; no stated cap (third-party: $10 million) | Not published; third-party: from about 1% per 30 days | First funding 2 to 5 days; repeat advances within 24 hours |
| Star Funding | Direct funder: PO financing and invoice factoring | Up to 100% of cost of goods; example facilities $250,000 to $11 million | Factoring 1% to 3% per 30 days; PO financing 2% to 4% per 30 days | PO term sheet within hours; factoring setup 3 to 5 business days |
| Triumph Business Capital | Bank-owned freight factor (TBK Bank, SSB, Member FDIC, d/b/a Triumph) | No minimums; lines up to $20 million (third-party) | Not published; 1% to 4% per 30 days (third-party) | Decisions in about 90 seconds; paid within minutes, 24/7 |
| Universal Funding Corporation | Non-bank invoice factor (direct funder) | $25,000 to $20 million in monthly invoice volume (third-party: up to $5 million) | 0.55% to 2% for the first 30 days | 24 to 48 hours once set up; setup in 3 to 5 business days |
From each lender's Lender List review (Lender List est. where noted). Updated 2026-10-27. Confirm terms with the lender.
Invoice factoring FAQ
How much does invoice factoring cost? Most factors charge about 1% to 5% of the invoice for each 30 days it is outstanding, plus any setup or monthly minimum fees. A 3% fee per 30 days works out to roughly 36% a year before fees, so compare the yearly cost with a line of credit. What is the difference between recourse and non-recourse factoring? With recourse factoring you buy back any invoice your customer doesn't pay. Non-recourse moves that risk to the factor for a higher fee, but it usually covers only customer insolvency, not disputes. Will my customers know I'm factoring? Usually yes. The factor collects payment and your customer pays the factor directly. If you need confidentiality, look at accounts receivable financing, where you keep collecting yourself. Do I need good credit to factor invoices? Your customers' credit matters more than yours. Many factors approve businesses with limited credit history if they invoice creditworthy B2B or government customers. Can I choose which invoices to factor? Some factors let you pick invoices (spot factoring); others require you to factor all invoices from a customer or set a monthly minimum. Ask before you sign, along with the contract length and termination fee. This page is general information, not financial advice. Confirm terms with each lender.