Invoice Factoring Companies
Invoice factoring, or financing that allows you to get cash advances against unpaid invoices for your business, can be a good option for businesses that need an infusion of capital to cover a change in overhead or to help them scale. It’s a handy option for some businesses, as invoice factoring with no credit check is more common than with more traditional loans. With that comes invoice factoring interest rates, which tend to be higher than traditional loans. A business should carefully weigh its invoice factoring and other lending options, comparing invoice factoring companies’ terms and fees to determine what is right for them.
The Best Invoice Factoring Companies
You can consider many different invoice factoring companies for your financing needs. They vary based on rate structure, fees, repayment terms, funding amounts, approval and turnaround times, etc.
Invoice factoring rates will depend on the company’s terms, the credit history of your customers and sometimes you and your business, the volume and balance total of the invoices, and the repayment terms. Invoice factoring financing is a good option if you do not qualify for more traditional loans, have a one-time or irregular need for cash and have healthy accounts receivable, or if your customers are slow to pay invoices. You need upfront capital to cover overhead or recurring expenses.
Here are some of the best invoice factoring business cash advance companies:
|
Name of invoice factor |
Credit check required? |
Funding amount |
Approval time |
Interest rates |
|---|---|---|---|---|
|
altLINE |
Yes, score of 500 of higher |
Up to $4 million |
Average 3 days |
.5% to 3% or up to 5% |
|
Fundbox |
Yes,score of 500 or higher |
Up to $100,000 |
24 hours |
Starts at 4% |
|
FundThrough |
Yes, 625 or higher |
Up to $250,000 |
As fast as same day |
2.5% to 7.5% |
|
Payplant |
No |
Up to $1 million |
72 hours |
Starts at 1.2% |
|
RTS Financial |
No |
Not listed – contact company for more information |
24 hours |
Not listed – contact company for more information |
|
Triumph Business Capital |
Yes, a score of 500 or higher |
Up to $5 million |
Average 7 days |
Variable |
Different invoice factoring companies offer different terms that may be more or less attractive to you based on your business needs. For example, you might focus on an invoice factoring company with faster approval and cash advance turnaround times. Or you may be keen on identifying potential companies that do not run credit checks or have minimum credit score requirements to qualify. Tools like BusinessLoans.com make comparing invoice factoring companies and other lending options easy to select the right financing for you and your business. Check now!
0.5% to 5%, with an average rate of 2.5%. The rates will depend on your credit and sometimes your customers’, as well as the balance and volume of the invoices you are selling.
All different kinds! Invoice factoring financing is a type of advanced capital that businesses of all sizes across many industries may access, from transportation to manufacturing to business services, and many in between.
Yes. Invoice factoring can be worth pursuing for a business with the right profile and needs. Particularly for businesses seeking capital with no credit check, and who tend to have
