What is the best invoice factoring company for a small business in 2026?
Most factoring companies hide their rates. We ranked the ones that put real numbers on their own sites.
Your customer pays in 60 days. Payroll and suppliers do not wait. Invoice factoring turns that unpaid invoice into cash this week: a factoring company buys the invoice, advances most of its value, collects from your customer and sends you the rest minus its fee.
The catch is that most factors quote by phone, and the headline rate rarely includes the origination, wire and minimum-volume fees. We compared five US factoring companies that publish their pricing logic on their own websites, and priced the same $10,000 invoice at each one wherever their numbers allow it.
The short answer: FundThrough if you want a flat, published rate of 1.9% to 2.9% per 30 days with no long contract. altLINE if you want a bank-backed factor with a transparent fee list. Riviera Finance if you need non-recourse factoring, where the factor absorbs the loss when a customer cannot pay. eCapital if you need very fast funding, including weekends. Universal Funding if you invoice $25,000 or more a month and want the lowest published starting rate.
Still choosing where the money lands? Our ranking of online business banks covers the account side.
The ranking is editorial: a sponsored placement is always labeled on its card, and no affiliate link changes a score.
Best invoice factoring by situation
5 factoring companies compared on what matters
The price column shows what each company publishes on its own site. The rank follows the needs of a US small business that wants predictable pricing and no long lock-in, not just the score.
| Best for | What it does best | Free plan | Team size | Visit | ||||
|---|---|---|---|---|---|---|---|---|
| 1 | FundThrough | Best published pricing | Flat fee, no compounding | 4.3/5 | 1.9% to 2.9% per 30 days | — | US and Canadian B2B businesses | Visit → |
| 2 | altLINE | Best bank-backed factor | Transparent fee list | 4.1/5 | From 0.50%; typically 1% to 5% | — | Small and mid-sized B2B firms | Visit → |
| 3 | Riviera Finance | Best non-recourse | Absorbs the bad-debt loss | 3.9/5 | Percent of invoice, quoted per account | — | US and Canadian B2B companies | Visit → |
| 4 | eCapital | Fastest funding | Funding in 24 to 48 hours | 3.8/5 | Typically 1% to 5% or more of the invoice | — | Small and mid-sized businesses | Visit → |
| 5 | Universal Funding | Best low rate for volume | Low rate, side fees listed | 3.7/5 | 0.55% to 2% for the first 30 days | — | B2B firms invoicing $25,000+ a month | Visit → |
Rates read on each company's official pages in 2026. All five customize final pricing to your customers' credit and your invoice volume.
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How we compared and scored
Factoring is not a software subscription: you hand part of your receivables to a third party, and your customers will deal with them. So we looked first at pricing transparency (does the company publish real numbers, or only a phone number?), then at the cost of one $10,000 invoice, then at contract terms and recourse.
We read each company's own pricing and service pages, and user complaints on business forums. None of these companies has a dedicated review in our Labs, so the scores are set here.
Who is not ranked, and why. Our rule: a factor is ranked when its pricing structure (how the fee is calculated, and which fees exist) is readable on an official page, even if the final rate comes on a quote. Triumph and freight-only factors such as Apex Capital do not publish that structure, so they are not ranked. We kept this list to five rather than pad it with a factor whose pricing we cannot read. Fundbox and Bluevine offer lines of credit, not factoring. Resolve sells net terms to your buyers, a different product.
- Pricing transparencyPublished rates, fee list, custom-quote only.30 %
- Value for moneyCost on a $10,000 invoice, origination, wire and minimum fees.25 %
- FlexibilitySpot factoring or full ledger, contract length, renewal terms.20 %
- SpeedApproval time and time to funds.15 %
- Credit protectionRecourse or non-recourse.10 %
The ranking is editorial: a sponsored placement is always labeled on its card, and no affiliate link changes a score.
FundThrough
FundThrough is the clearest pricing on this list. Its pricing page states a flat fee of 1.9% to 2.9% per 30 days for businesses with up to $999,999 of outstanding invoices, with no compounding interest. Above $1,000,000 you get a custom quote.
It advances up to 100% of the invoice face value, minus its fee. On a $10,000 invoice paid in 30 days, that is $190 to $290, and you see which end of the range you land on from your own and your customer's eligibility.
What it does better: the application takes under five minutes, approval takes days rather than months, and you only need outstanding invoices to one creditworthy customer. There is no minimum invoice size listed.
Its limit: B2B and government invoices only, in the US or Canada, for completed work. Construction and real estate are excluded, and existing liens on your receivables must be removed.
Tip: the fee runs per 30-day period. If your customer usually pays at day 31, you pay a second period. Factor the invoices of customers who pay on time, and keep slow payers for another solution.
- Flat fee per 30 days
- Up to 100% advanced
- Application in under five minutes
- ✓Published price range
- ✓One customer is enough
- ✓No compounding interest
- ✗Construction and real estate excluded
- ✗Second fee period if paid late
- ✗US and Canada only
The safest first step into factoring: you know the cost before you start.
altLINE
altLINE is operated with The Southern Bank Company. It is one of the few factors that publishes a full fee breakdown on its own site.
Its rates start at 0.50% and typically land between 1% and 5% of the invoice, rising the longer the invoice stays unpaid. An illustrative schedule on its rates page, not a published rate card: 1.5% for days 0 to 30, then 2.0% for days 31 to 40, 2.5% for days 41 to 50, up to 4.5% at day 90. It advances 80% to 90% of the invoice. On a $10,000 invoice, that illustrative schedule gives $150 if paid within 30 days, and $250 at day 45.
What it does better: honesty about fees. Origination is $150 to $500, charged only after you are funded. ACH transfers start at $0, wires cost $15 to $30. altLINE says it charges no lockbox, monthly access, renewal or minimum invoice fees.
Its limit: the advance stops at 90%, so the rest arrives only when your customer pays. Contracts renew automatically, with a 30-day window to leave.
Tip: put the renewal date in your calendar 45 days ahead. Missing the 30-day notice window is the most common way small businesses stay in a factoring contract longer than they planned.
- Operated with The Southern Bank Company
- Full published fee list
- Origination charged after funding
- ✓Low starting rate
- ✓No monthly or lockbox fees
- ✓ACH from $0
- ✗Advance capped at 90%
- ✗Rate climbs as invoices age
- ✗Automatic renewal
A solid, bank-backed choice for steady invoice volume. Watch the renewal window.
Riviera Finance
Riviera Finance offers non-recourse factoring: if it factors an invoice and your customer cannot pay, it absorbs the loss instead of coming back to you. Most small-business factoring is recourse, so this is the main reason to pick it.
Fees are a percentage of each invoice at a rate fixed in advance, but Riviera does not publish the percentage: you get it on a quote. It transfers up to 95% of the invoice, and pays Net 30 invoices within 24 hours once the customer has received and accepted the goods.
What it does better: credit protection. Riviera checks and guarantees the credit of the customers you factor, which works like a bad-debt insurance on those invoices.
Its limit: no published rate, and its payout calculator lists minimums, due diligence, application and maintenance fees without amounts. Ask for each one in writing.
Tip: non-recourse usually covers a customer's insolvency, not a dispute over the quality of your work. Ask exactly which events are covered before you count on it.
- Non-recourse factoring
- Up to 95% advanced
- Paid within 24 hours
- ✓Factor carries the credit risk
- ✓Customer credit checks included
- ✓Wide range of industries
- ✗Rates not published
- ✗Several fees without amounts
- ✗Disputes usually not covered
Worth the quote when one bad customer could sink you. Read the coverage line by line.
eCapital
eCapital is a large factoring company that serves many industries. It does not publish a rate card, but its own explanation of factoring gives the range: fees typically between 1% and 5% or more of the invoice, set mostly by the creditworthiness of your customers.
On a $10,000 invoice, that means $100 to $500 or more. eCapital says it can advance up to 100% of the invoice depending on terms, and funds usually within 24 to 48 hours after approval. Its app advertises one-hour and weekend funding.
What it does better: speed. It answers within 24 hours of contact and has products for industries other factors avoid.
Its limit: the published range is wide, and contract length, minimum volume and reserves are not on the page. Your customers are usually told to pay eCapital directly.
Tip: when you compare a quote from eCapital with FundThrough, convert both to the same 30-day cost on the same invoice. A low headline rate with a reserve and a minimum volume can cost more than a flat fee.
- Funds in 24 to 48 hours
- Weekend funding in the app
- Advance up to 100%
- ✓Very fast
- ✓Many industries covered
- ✓Free quote
- ✗Wide fee range
- ✗Contract terms not published
- ✗Customers pay eCapital directly
The pick when speed matters most. Get every fee in writing before you sign.
Universal Funding
Universal Funding publishes the lowest headline rate on this list: from 0.55%, and generally no higher than 2%, for the first 30 days. It advances up to 95% of eligible invoices.
On a $10,000 invoice paid within 30 days, that is $55 to $200. Its rates page also lists the side fees: $0 monthly access fee, $35 for credit approvals, $50 for the lockbox and $30 per outgoing wire, with no same-day funding or early wire fee.
What it does better: a low rate with the extras in writing. Most businesses receive their advance within 24 to 48 hours of invoice verification, and each client gets a dedicated account rep.
Its limit: the eligible monthly invoice volume starts at $25,000, so it does not fit a business that only wants to factor one small invoice. Contract length, minimums and recourse are not on the page.
Tip: ask whether the 0.55% applies to your customers and your volume, and for the rate after day 30. A low first-month rate matters less if your customers pay at 60 days.
- Rates from 0.55%
- Up to 95% advanced
- Side fees published
- ✓Lowest published starting rate
- ✓No monthly access fee
- ✓Funds in 24 to 48 hours
- ✗$25,000 monthly volume to start
- ✗Recourse terms not published
- ✗Contract length not published
A cheap option once your volume is steady. Too big a commitment for a single invoice.
Three questions most factoring guides skip
Factoring guides list advance rates and a range of fees. They rarely price the same invoice everywhere, list the fees outside the rate, or explain what you sign up for on day one.
What a $10,000 invoice really costs
Take one $10,000 invoice. Paid in 30 days, FundThrough charges $190 to $290. altLINE's illustrative schedule gives $150, rising to $250 if the invoice is paid at day 45. eCapital's range gives $100 to $500 or more. Universal Funding's published range gives $55 to $200 for the first 30 days. Riviera quotes per account.
Then add the fees that are not in the rate: origination, wire transfers, monthly minimums. altLINE lists origination at $150 to $500 and wires at $15 to $30. On a single invoice, those fees can double the real cost.
Recourse: who pays when your customer does not
With recourse factoring, the most common kind, if your customer never pays, you buy the invoice back. With non-recourse, like Riviera Finance, the factor absorbs the loss, usually only when the customer is insolvent, not when it disputes your work. Non-recourse costs more, and is worth it only if one customer's failure would really hurt you.
The contract you sign on day one
Factoring agreements often renew automatically, with a short notice window to leave: altLINE's is 30 days. Business owners on forums describe the same regret: they signed for their whole ledger when they only needed to fund one invoice. Ask whether you can factor invoice by invoice (spot factoring), and for the exit terms in writing.
- Ask for the rate on your own invoice, per 30 days.
- Get a written list of every fee outside the rate.
- Check whether the contract is recourse or non-recourse.
- Ask for contract length, renewal and exit fees.
- Check whether you can factor one invoice at a time.
- Tell your customers before the first notice arrives.
Factor your first invoice without surprises
Most complaints about factoring come from the first month: the wrong contract, a surprised customer, a fee nobody mentioned. These six steps avoid them.
Size your real need
PriorityCount how many invoices you want to factor over a year and their average size. Two large invoices and forty small ones do not call for the same contract.
- FundThrough
- No minimum invoice size listed
Check your customers first
PricingThe factor prices the risk of your customers more than yours. Factor the invoices of large, reliable customers first: that is where the rate is lowest.
- Fee driver
- Your customers' credit
List every fee
CostAsk for origination, wire, ACH, minimum-volume and early-termination fees. Add them to the rate on one real invoice before you compare offers.
- altLINE wire
- $15 to $30
Choose recourse or not
RiskIf one customer's failure would sink you, ask for non-recourse and read which events it covers. Otherwise recourse is cheaper.
- Riviera Finance
- Absorbs the loss on factored invoices
Tell your customers
RelationshipYour customers will be asked to pay the factor. Tell them yourself and present it as a payment change, before the factor's notice reaches their accounts team.
- eCapital
- Customers usually pay the factor
Plan the exit
ContractWrite down the renewal date and notice window the day you sign. With altLINE, the window is 30 days before automatic renewal.
- altLINE notice
- 30 days
Go further
These pages complement this one without repeating it.
Who holds your money.
You want clean invoicesInvoicing softwareInvoices factors accept.
You run a small businessInvoicing for small businessSimple and connected.
You track cash flowAccounting for microbusinessesBooks that match your invoices.
You want every rankingThe LabsAll our comparisons.
You compare business accountsQonto vs ShineTwo European accounts head to head.
Invoice factoring · FAQ
How much does invoice factoring cost a small business?
Usually between 1% and 5% of the invoice, depending on your customers' credit and how long they take to pay. FundThrough publishes 1.9% to 2.9% per 30 days; altLINE starts at 0.50% and typically lands between 1% and 5%. Add origination and transfer fees to get the real cost.What is the difference between factoring and invoice financing?
With factoring, you sell the invoice: the factor collects from your customer. With invoice financing, you borrow against the invoice and keep collecting yourself. Lines of credit like Fundbox or Bluevine are financing, not factoring.Will my customers know I use factoring?
Usually yes. Most factors ask your customers to pay them directly, as eCapital explains on its own site. Tell your customers yourself before the notice arrives.What is non-recourse factoring?
The factor keeps the loss if your customer cannot pay, instead of making you buy the invoice back. Riviera Finance offers it. It usually covers customer insolvency, not disputes over your work, and costs more than recourse factoring.Can I factor a single invoice?
With some factors, yes. FundThrough only needs invoices to one creditworthy customer and lists no minimum invoice size. Others prefer a contract on your whole receivables ledger: ask before you sign.How fast can I get paid?
From one to a few days. Riviera Finance pays Net 30 invoices within 24 hours once your customer has accepted the goods, eCapital usually within 24 to 48 hours after approval, FundThrough in days.Can a new business use invoice factoring?
Often yes, because the factor looks mainly at your customers' credit, not your history. What matters is that you invoice reliable businesses or government agencies for work already delivered.