Top 10 Factoring Companies in the USA

Finding the best invoice factoring company for your needs isn’t easy. We understand this, so we’ve eliminated the guesswork by creating a list of the top ten factoring companies in the USA. Each company offers cash advances on unpaid customer invoices and often additional funding solutions or services to help your business grow.

The Importance of Choosing the Right Factoring Company

Sometimes referred to as invoice financing, factoring can be a great alternative to business loans. It works for various businesses, including those without solid credit scores and those turned down for loans. However, many strong and established businesses leverage it, too, because factored invoices provide fast debt-free funding.  

Despite this, all factoring companies are not the same. You’ll see wide variances in the level of service offered, factoring fees, and contractual obligations. Plus, some specialize in specific industries and offer additional services or expertise that can help your business grow.

Because of this, you’re not simply choosing a factoring company to advance you some cash as needed. The company you choose can become a long-term partner that helps your business solve its greatest challenges and scale.

How Invoice Factoring Works for Small Businesses

For small businesses, cash flow management can be a challenge when clients delay payments on invoices. Invoice factoring offers a reliable solution by allowing business owners to sell their accounts receivable to a factoring company. Instead of waiting weeks or months for payment, the business can receive funds within 24 hours, boosting cash flow immediately.

Unlike taking on a small business loan or business line of credit, invoice factoring involves selling outstanding invoices without accumulating debt. Factoring companies provide various programs to meet different business needs, including recourse and non-recourse factoring. With these options, small business owners can maintain control over their finances while gaining access to immediate capital.

Whether you run a startup or an established small business, factoring is a simple, flexible solution that supports growth by turning unpaid invoices into working capital.

Our Criteria for Assessing the Top Factoring Companies

When curating our list of the top factoring companies, we looked at three key areas:

1. Reputation: Most factoring companies on our list have Google Reviews ratings between four and five stars. Because others have good experiences with them, you’ll likely have a good experience too.
2. Factoring Process: Each company has a streamlined factoring process that allows you to be approved and receive your funds quickly.
3. Factoring Rates: All the companies on the list are known for offering competitive rates so that you can keep more money in your pocket.

Choosing the Best Factoring Company for Your Business

Selecting the right factoring company can make all the difference in managing your business’s financial health. The best factoring companies offer customized solutions that fit your specific business needs, whether you require fast funding, additional services like credit management, or flexible terms like recourse and non-recourse factoring.

Factoring companies may offer varying rates, fees, and programs, so it’s essential to assess which company best aligns with your goals. Key factors to consider include, customer service, industry experience, and transparency in fees and terms. Many factoring companies also provide services beyond invoice factoring, such as business credit support and online tools for managing accounts receivable.

To choose the best factoring company, evaluate how well their services meet both your personal and business needs. This will help ensure your business thrives with the right financial support in place.

Top 10 Factoring Companies in the USA

Each business has unique needs, so no singular best factoring company exists. Our list of top factoring companies is not ranked by preference for this reason. It includes details about industries served and services provided, so it’s easier to find your ideal fit.

1. Triumph Business Capital

For those in the trucking industry, Triumph Business Capital is a good option to shortlist. The company serves fleets, owner-operators, and freight brokers with a variety of funding solutions, including freight factoring, asset-based lending, and equipment financing. Because they’re focused on freight, they also have a fuel card program and other industry-specific perks.

2. RTS Financial

Another factoring company for truckers to shortlist is RTS Financial. While the company offers perks similar to Triumph, such as fuel cards, it also produces ProTransport, a comprehensive trucking software to help manage dispatch, maintenance, and more.

3. eCapital

Those in niche industries that can’t find a specialist may want to check out eCapital. It’s more of a generalist factoring company that serves more than 80 industries, which means they’re likely to have at least some carryover experience in your niche. In addition to providing freight factoring and invoice factoring services, the company offers asset-based lending, equipment refinancing, and lines of credit.

4. TCI Business Capital

A division of Fidelity Bank, TCI Business Capital is more of a generalist factoring company with specialty offerings in telecom, oilfield services, and manufacturing. However, TCI sets itself apart in a few key areas. First, they prioritize speed and try to get approvals through on the day a request is submitted. Secondly, they don’t shy away from businesses in trouble. They’re happy to help businesses going through bankruptcy and those coping with bank workouts.

5. Apex Capital Corp

Founded in 1995, Apex Capital sets itself apart with its blynk® digital payment system that can pay companies within minutes of invoice acceptance – even on nights and weekends. Apex serves a variety of industries, including staffing, oil and gas, manufacturing, and construction. However, it has deep roots in the trucking industry and is a member of the Truckload Carriers Association (TCA), Women in Trucking (WiT), and more. It also offers unique programs for those starting a trucking company, fuel cards, and a free load board.

6. Mazon Associates

As one of the oldest factoring companies, founded more than 45 years ago, Mazon primarily focuses on oil and gas, staffing, construction, business services, and transportation. The company prides itself on eliminating unnecessary fees and startup costs plus offers month-to-month options with no cancellation fee.

7. J D Factors

If you’re specifically looking for non-recourse factoring, J D Factors is a good option to shortlist. The company offers same-day funding and serves a variety of industries, including trucking, staffing, wholesale/distribution, and oilfield services.

8. Riviera Finance

With more than 50 years in business, Riviera Finance has experience in most industries, though it tends to focus more on temporary staffing, energy, oil and gas, telecom, and transportation. Although the company hints at having more traditional loan terms available, they are centered on factoring.

9. Porter Freight Funding

As the name suggests, Porter Freight Funding is dedicated to the transportation industry. In addition to providing freight factoring services, the company also helps with dispatching, compliance, and insurance quotes, plus it tends to offer a low introductory rate for newcomers.

10. Factor Funding Company

Last but not least on our list of the top factoring companies in the USA is Factor Funding Company. It’s more of a generalist provider, serving most industries and providing a plethora of cash flow solutions. In addition to AR funding, the company also offers PO financing, asset-based loans, and equipment financing. It’s also one of the few that does debt collection and settlement funding.

Factoring Solutions for Trucking Companies

Trucking businesses often face financial challenges due to irregular cash flow from outstanding invoices. Factoring for freight companies allows business owners to convert these unpaid invoices into immediate cash, typically within 24 hours. Factoring companies specializing in trucking offer tailored solutions, such as fuel cards and load boards, to support the transportation industry.

Selecting a factoring company that meets the needs of your trucking business is essential to maintaining consistent cash flow and covering operational expenses like fuel and payroll. Additionally, options like recourse and non-recourse invoice factoring can give trucking businesses flexibility in managing risk. Many factoring companies provide fast approvals and industry-specific perks, making trucking factoring a top choice for businesses in this sector.

By working with a factoring company that understands the unique needs of transportation companies, business owners can focus on growth and operations without worrying about delayed payments.

Best Factoring Solutions for Managing Outstanding Invoices

Outstanding invoices can disrupt your cash flow, but factoring provides a quick and efficient solution. Factoring companies purchase unpaid invoices, advancing funds to businesses within 24 hours. These companies then handle collections, freeing up your time to focus on operations.

Recourse factoring agreements require the business to repurchase unpaid invoices, while non-recourse factoring shifts the risk to the factoring company. Understanding these options is crucial when selecting the best fit for your business needs. Factoring companies often offer flexible terms and provide additional services like credit protection to help businesses manage risk.

By choosing the right factoring solution, businesses can maintain steady cash flow and meet their financial obligations without the uncertainty of delayed payments.

Get a Free Factoring Rate Quote

Still unsure which of the top factoring companies to choose or want to kickstart the process? We’re happy to help match you with a factoring company that can meet your needs and offers competitive rates. To learn more or get started, request a complimentary rate quote.