Invoice factoring is a clever way of gaining funds while you await customer payments. You’ve carried out the work and charged the customer, but it’s taking a while for their invoice payment to come through. In essence, there’s a lot of money tied up in no man’s land that you can’t get your hands on.
Your business can acquire this money by using an invoice factoring company. The company will essentially buy your invoice from you, granting an advance payment of around 70-90% of the invoice’s total value. This gives you money to use and improve your cash flow, while the factoring company then handles the invoice and works on getting a payment from the customer. When the payment comes through, they send you the remaining balance, minus their service fees.
It’s incredibly useful for businesses that use invoices, particularly if you’re struggling with cash flow problems due to late payments. The key is finding the best invoice factoring company to partner with your business, so here’s a shortlist of the top options in 2025.
1. Porter Capital – Best For Personal Account Management
The number one invoice factoring company at the moment is Porter Capital. It provides everything you need from a service like this, though it claims the number one spot because it pushes the boat out in several key areas.
Most notably, the company doesn’t use automated account management systems and instead chooses to employ real humans. Having access to genuine human beings does more than give the service a personal touch; it mitigates errors and means you’ve got a point of contact to handle just about everything for you.
As well as this, it offers two excellent features that can’t be ignored:
- Rates as low as 0.40%
- Pays up to 95% of your invoice
In other words, Porter Capital makes it easier for you to afford invoice factoring while ensuring you get as much of your invoice as possible, allowing you to maximize cash flow.
2. altLINE – A Top Choice For Fast Startup Funding
If you want to receive funds as quickly as possible, then altLINE could be the invoice factoring service you choose. It’s known to be a popular choice with startups and new businesses because it offers funding within 24 hours of your application.
The speed with which you gain funds from unpaid invoices can help you get out of a pickle. This is made even easier by the fact that it doesn’t have a complicated approval process. Most businesses that apply for their invoice factoring service are approved without any problems.
One possible downside is the company’s funding limits. You can only receive up to 5 million dollars through invoice factoring – which sounds like a lot, but might not be enough for some of the larger businesses out there. That’s why this is mainly a popular choice for startup companies or businesses running on smaller budgets.
3. Riviera Finance – Ideal For In-Person Factoring
Most invoice factoring companies only provide online services, which are fine for the majority of businesses. But what if you prefer the human-to-human contact and like dealing with things in person? Riviera Finance is one of the few invoice factoring companies that still provide in-person services for clients. You can visit one of its many offices to talk directly with someone and apply for funding.
The company also provides fast turnaround times, claiming to guarantee a 24-hour funding period. This feels a lot like an invoice factoring company that caters to local businesses across its 25+ locations. It’s been around for over 55 years and claims to have worked with more than 20,000 clients, so it should be a company you can trust.
Again, it does have some funding caps that might get in the way for bigger businesses with larger invoices. For instance, you can only receive up to $500,000 per invoice, which may shift this service down the pecking order for some of you.
4. FundThrough – Best For Syncing With Existing Software
FundThrough is a top-rated invoice factoring company with a couple of really cool features that make it a hit with a lot of small businesses. To start, it’s excellent when you want to integrate invoice factoring with any existing accounting software. You can sync it with the likes of QuickBooks or OpenInvoice without any trouble, making it easy for you to track everything.
Another key feature is the 100% advance rate offered on some funding options. You won’t necessarily get this for every invoice, but it is possible to be paid the full amount upfront, which is perfect for those tight cash flow scenarios.
It sounds great, but the reason it only comes in at 4th on the list is that it doesn’t cater to a lot of small businesses. You won’t be able to apply if you have less than $100,000 in outstanding invoices, nor will you be accepted if you’re in certain industries – like real estate or construction.
5. Charter Capital – Good For Same-Day Funding
Charter Capital is a slightly lesser-known name, but with an A+ BBB Rating and many happy customers, it’s a company you should definitely consider for invoice factoring. It covers a lot of common industries, such as:
- General service providers
- Manufacturing
- Trucking & freight services
- Oil and gas services
- Staffing agencies
- Security firms
Plus, it provides same-day funding, which means you can get a cash injection within a few hours of applying. That’s definitely the standout feature – and a lot of businesses will benefit from this.
All things considered, you’ve got a grand choice of invoice factoring companies to look at and choose from. It’s incredibly beneficial to have a solution in the palm of your hand to deal with a lack of customer payments. There’s one less thing to stress about when sending an invoice because you know you’ll get the money through alternative means. Plus, invoice factoring is more affordable and quicker than getting business loans; all you need to do is pick the right company for your needs.
