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Best Factoring Services 2016

We know that businesses have different factoring needs. We researched and reviewed dozens of factoring services to find the best ones for different types of businesses. Here is a roundup of our best picks and how we chose them.To help you find the right factoring service for your business, check out our buyer’s guide: Factoring: What It Is and How to Choose a Service.

American Receivable has been providing factoring services to small businesses since 1979, so you know you’re in good hands. We like American Receivable for its low fees and fast, generous funding. Fees start at just 1 percent, and the company advances up to 95 percent of invoice amounts. The typical rate is 2-6 percent, and most factors cover only 70-90 percent of invoices. Businesses can be approved within 24 hours, and there are also no startup, application, maintenance or repayment fees. [Go here for a full review of American Receivable.]

Fundbox is a new company that’s changing the way factoring is done — and that’s great news for very small businesses. We like that Fundbox has a very low barrier to entry, so it’s easy to qualify as a microbusiness. Fundbox also has a simple application process compared with its competitors. Just sign up for a free account and connect your accounting software to start submitting invoices online — no paperwork required. We are also a fan of Fundbox because the company advances 100 percent of invoices and offers low rates and friendly repayment terms that actually reward you for paying early. Current customers also rave about Fundbox’s excellent support team and that funds are wired to your bank within 24 hours. [Go here for a full review of Fundbox.]

BlueVine is another factoring company that’s modernizing how invoice financing is done. Its minimum requirements are very simple: be in business for at least three months and have a credit score of 530. There are no revenue requirements, and the company offers flexible factoring for as little as $5,000 to $500,000 for invoices due up to 90 days. We also like that BlueVine caters to your business’s needs by offering another form of financing: lines of credit up to $50,000 with a six-month repayment plan. BlueVine also offers fast, friendly customer service that has earned them five-star ratings from TrustPilot and QuickBooks. [Go here for a full review of BlueVine.]

To find the best factoring services for small business, we started by listing companies that are well-known in the industry and have positive feedback from customers. We also added companies that appear on reputable online sources, such as review sites and business websites.

To grow our list, we asked small business owners which factoring companies they use or have worked with in the past. We also asked them what they liked and disliked about these vendors, and whether they’d recommend them to other small businesses. This helped us gain insight as to what business owners expect from a factor and what they think makes the “best” factoring service.

Next, we researched the vendors on our list and narrowed them down based on use-case scenarios, which are our Best Picks categories. Our extensive research included reviewing each factoring company’s website, studying their history and reputation, watching videos and reading both customer and business reviews.

We also personally reached out to companies as potential customers in search of a factoring service. We spoke to sales and customer service representatives and asked about service terms, pricing details, the fine print and other important questions. This helped us learn more about their service by getting more information that isn’t readily available on their website or from other sources, while also helping us evaluate their quality of support.

As part of our research, one of our main objectives is to put ourselves in the shoes of small business owners. To this end, here are the criteria we used to evaluate each factoring service:

  • Rates, transaction fees and other costs.
  • Percentage of invoices the company will advance up front.
  • Repayment terms.
  • Application process.
  • Minimum requirements.
  • Ease of approval.
  • Funding and processing time.
  • Whether a contract is required.
  • Notice of assignment (if customers will be notified to redirect payments to factoring company).
  • Additional services, such as loans and lines of credit.
  • Positive feedback from customers.
  • Reputation and how long each company has been in business.
  • Third-party integrations, such as accounting or invoicing software.
  • Customer service.
  • Service limitations.

Here is a full list of factoring services and a summary of what each company claims to offer. This alphabetical list also includes our best picks.

1st PMF Bancorp — 1st PMF Bancorp offers domestic and foreign factoring services with no application, startup or termination fees. They also provide competitive advance rates and prime plus bank pricing, credit insurance and more. You can also apply online. invoicefactoringus.com

Accutrac Capital — Accutrac Capital specializes in serving North American businesses in the trucking and transportation industry. In addition to receivables invoice factoring, the company also provides cash advances, bulk buy discounts and equipment financing. accutraccapital.com

Alliance One — Alliance One offers factoring services to both small to large companies, newly formed or well established. Whereas some factoring services are only available in certain regions, Alliance One provides funding services to all 50 states. allianceonellc.com

altLINE — A service of The Southern Bank Co., altLINE provides invoice factoring for different types of businesses. The bank offers a free application, same-day funding and competitive rates. AltLINE fits businesses who value the confidence of working with a FDIC-regulated bank, but who may have been turned down by their own bank. The program considers creditworthiness of customers and works with businesses having a limited operating history. altline.sobanco.com

AmeriFactors — AmeriFactors has been in business for 25 years. The company provides asset-based loans, accounts receivable financing (factoring) and business cash advances. Apply online and receive a response, or the money transfer, within 24 hours. amerifactors.com

*American Receivable — Established in 1979, American Receivable is our pick for the best factoring service for small businesses. We like it for its low fees — starting at just 1 percent of invoices — and because the company advances up to 95 percent of invoices up front (the industry average is 2-6 percent and 70-90 percent, respectively). American Receivable also has no startup or application fees, and you can apply online and receive approval within 24 hours. There are also no repayment penalties. Read our full review here.

Apex Capital Corp — If you are in the transportation industry, Apex Capital Corp offers full-service freight factoring that specializes in small- to medium-size trucking companies. Apex buys freight bills and provides industry leading service, benefits, and credit to clients. apexcapitalcorp.com/factoring

Bay View Funding — Bay View Funding offers invoice factoring for businesses, and has been doing it successfully since 1985. Focused on customer service, Bay View Funding has multiple resources available to provide simple, reliable and easy-to-understand invoice factoring. bayviewfunding.com

*BlueVine — Our pick for the best B2B factoring service, BlueVine offers a simple rate with 24-hour approval, no long-term contracts, minimums or hidden fees. To qualify, you only have to have been in business for three months and have a credit score of 530. In addition to factoring, a traditional line of credit is available. This is all backed by excellent customer support. Read our full review here.

Capital Plus — If your business has limited or no credit history, Capital Plus can help. The company offers factoring services with no long-term contracts, no monthly minimums and an all-inclusive fee. In-house underwriting is also offered. capitalplus.com

Charter Capital — Charter Capital offers factoring services for various industries, including trucking and freight services, staffing, manufacturing, security firms and more. Their services include low rates, no long-term contracts and same-day funding, and you can apply online for a quote. chartercapitalusa.com

CIT Commercial Services — Some factoring companies offer more than invoice financing. CIT Commercial Services’ services include credit protection and advice, bookkeeping with EDI (electronic data interchange), invoice and payment processing, cash management and lockbox processing, and more. The company also offers notification and non-notification factoring. cit.com

Coral Capital Solutions — Coral Capital Solutions provides customers with working capital through purchase order and accounts-receivable factoring, asset-based loans, contract financing and specialty financing. The company uses its own equity to quickly provide funding. coralcapitalsolutions.com

Creative Capital Associates — Does your business deal with technology or provide services to the government? Check out Creative Capital Associates, a factoring company that specializes in funding for the technology industry and government contractors. The firm also understands that a good relationship is the most valuable trait for financing success. For two decades Creative Capital Associates has been providing quick access to capital nationwide, and getting complicated deals done easily in a friendly manner is their mission. ccassociates.com
Crestmark — Crestmark offers discount factoring and traditional factoring services that cover companies as new as startups to those with $100 million in sales. You can get advances daily if necessary, and they also offer accounts receivable book-keeping, web-based reporting, customer investigation and approval, and more. crestmark.com

Factor Funding Co. — Factor Funding Co.’s factoring services feature a customized program to fit your business’s needs and have no startup or application fees. You can access your account information online or by phone, email, fax or mail 24/7. Potential customers can also apply online and get approved within 24 to 48 hours. factorfunding.com

*Fundbox — Our pick for the best factoring service for very small businesses, Fundbox offers fast funding, an easy application process, transparent pricing, small business-friendly repayment terms and top-rated customer support. It’s also easy to qualify for Fundbox, making it a great choice for very small businesses that don’t meet most factoring service’s revenue and operational requirements. Read our full review here.

Interstate Capital — Interstate Capital offers same-day funding, 24/7 automatic credit approvals and rates starting at 0.49 percent per invoice. The company also offers factoring services for specific industries, including trucking and freight services, manufacturing and distribution and staffing, among others. There is no application fee, and customers can apply online. interstatecapital.com

My Factoring Network — My Factoring Network offers factoring services to all types of small and big businesses across the United States. It also offers loans from certified lending partners for as low as 12 percent and money is received within seven to 14 days. myfactoringnetwork.com

New Century Financial — New Century Financial charges no application, startup or termination fees; has no long-term contracts; and lets you apply online to be approved within 24 hours. You can get up to 90 percent cash advancement, based on the credit of your customers. newcenturyfinancial.com

Paragon Financial Group — Most factoring services generally cover only 70-90 percent of invoices upfront. Paragon Financial Group’s factoring services offer up to 95 percent cash advancement with no application fee, as well as approval in 24 hours. The company also offers credit protection, payroll funding and more. paragonfinancial.net

Riviera Finance — If you’re looking for a factoring company with a solid history, Riviera Finance has been financing businesses since 1969. Just fill out a quick form on their website to receive a quote. The company offers 24-hour funding and a standard cash advance of 91 percent of invoices. Also featured is an online account management system that you can access 24/7. rivierafinance.com

RMP Capital Corp. — RMP Capital Corp. has different factoring services tailored to specific businesses, including public works contractors, service providers, trucking companies and small businesses. It also offers up to 90 percent cash advancement. rmpcapital.com

RMP Capital Corp. — RMP Capital Corp. has different factoring services tailored to specific businesses, including public works contractors, service providers, trucking companies and small businesses. It also offers up to 90 percent cash advancement. rmpcapital.com

RTS Financial — In addition to factoring services, RTS Financial has services for other industries, including trucking and transportation, oil-field services, and textile and apparel, and offers funding within 24 hours and competitive rates. The company’s advancement rate is up to 95 percent of the invoice amount. rtsfinancial.com

Universal Funding Corp. — Universal Funding Corp.’s factoring services include 24/7 client service, electronic invoice submittal, on-demand and updated reports, with no application or startup fees. Approval can take as little as two business days. universalfunding.com

USA Factoring — USA Factoring offers non-recourse factoring services for many industries, including agriculture, trucking and health care, and has no startup or application fees. Setup can take as little as 24 hours for new accounts. usafactoring.com

Are you a factoring company that would like to be added to this list and possibly considered for our next round of reviews? Please feel free to contact Sara Angeles at sangeles@purch.com.

Additional reporting by Shannon Gausepohl, Brittney Helmrich and Sylvia Rosen.

Editor’s Note: Looking for information on factoring services? Use the questionnaire below and our vendor partners will contact you to provide you with the information you need:

Sara AngelesSara is a tech writer with a background in business and marketing. After graduating from UC Irvine, she worked as a copywriter and blogger for nonprofit organizations, tech labs and lifestyle companies. She started freelancing in 2009 and joined Business News Daily in 2013. Follow Sara Angeles on Twitter @sara_angeles.

– See more at: http://www.businessnewsdaily.com/9335-best-factoring-services.html#sthash.HeVsDUzI.dpuf


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