The Top 5 Accounts Receivable Factoring Companies

The top accounts receivable factoring companies are FundThrough, altLINE, eCapital, Scale Funding, and Riviera Finance. The right choice depends on your advance rate needs, whether you want software integration, non-recourse protection, or month-to-month flexibility.

Quick picks:

• Best for up to 100% advances and accounting integrations, including OpenInvoice by Enverus: FundThrough
• Best for bank funding and startups: altLINE
• Best for fast funding on large invoices: eCapital
• Best for month-to-month flexibility: Scale Funding
• Best for non-recourse protection: Riviera Finance

Top AR Factoring Companies at a Glance

What Is Accounts Receivable Factoring?

Accounts receivable (AR) factoring is a form of invoice financing where a business sells its outstanding invoices to a factoring company (called a "factor") in exchange for an immediate cash advance. The factor then collects payment directly from your customer when the invoice is due.

AR Factoring vs. AR Financing

Both terms are used interchangeably, but they can describe two different arrangements:

When Does AR Factoring Make Sense?

Cash flow is a major operational challenge for B2B businesses. According to the Atradius 2025 B2B Payment Practices Barometer, overdue invoices affected 43% of credit-based B2B sales in the US.

When payroll is due on Friday but a customer won't pay for another month, a healthy sales pipeline doesn't cover the gap. Factoring turns that outstanding invoice into cash you can use before the customer's payment date.

Common use cases:

• Meet payroll before your customers pay
• Seize growth opportunities by taking on a new contract without waiting for the last one to pay
• Cover overhead such as rent, software, utilities, supplies
• Bridge slow seasons while maintaining operational capacity
• Access cash from earned receivables without selling equity
• Qualify when banks say no, because approval focuses primarily on your customer's credit

How We Chose These AR Factoring Companies

We compared each provider's published advance rates and fees to show how much cash a business receives upfront and what it costs. We also reviewed funding timelines and contract terms, including any stated protection against customer non-payment.

FundThrough wrote this comparison and is one of the five companies listed. We verified competitor rates and terms on each company's website in October 2026. Where a company doesn't publish a figure, we say “Not published as of October 2026.”

The 5 Best Accounts Receivable Factoring Companies

1. FundThrough

FundThrough works with businesses across many industries in the US and Canada. Its platform lets you choose which eligible B2B or government invoices to fund before customers pay.

Pros:

• Up to 100% advance rate, minus the fee, based on your customer's risk profile
• Spot factoring: choose which individual invoices to fund, only when you need it, with no required minimum after your first funding
• Named Best Overall Factoring Company by Forbes Advisor (2026) and best overall for terms and financing costs by FitSmallBusiness (2026)
• More than $3 billion in invoices factored

Cons:

• Only invoices for completed B2B or government work are eligible

See if you pre-qualify in 60 seconds →

2. altLINE

altLINE is a division of The Southern Bank Company and provides direct bank funding. It works with startups and businesses with limited credit histories, making it an option for early-stage companies.

As of October 2026. Source: altLINE invoice factoring page.

Pros:

• Customized pricing based on invoice volume, age, and customer credit
• Direct bank funding from a division of The Southern Bank Company
• Works with startups and businesses with limited credit
• Funding typically available within 24 hours once your account is set up

Cons:

• 80%–90% upfront. The balance is paid after your customer settles the invoice and altLINE deducts its fee.

3. eCapital

eCapital provides invoice factoring for businesses waiting on customer payments. Funding is usually available within 24–48 hours after approval. You can submit invoices and track your funding through its online platform.

As of October 2026. Source: eCapital invoice factoring rates and terms.

Pros:

• Non-recourse options for freight factoring

Cons:

• Fees can exceed 5%. Compare the quote's total cost and billing period

4. Scale Funding

Scale Funding (formerly TCI Business Capital), a division of Scale Bank, is a strong choice for businesses that want factoring without a long-term commitment. Its month-to-month contract option provides flexibility as your cash flow evolves.

As of October 2026. Source: Scale Funding invoice factoring rates and terms.

Pros:

• Month-to-month option with flexibility without a long-term commitment
• Serves staffing, trucking, oilfield, telecom, and manufacturing businesses

Cons:

• Fees not published as of October 2026; you must request a custom quote
• At least $50,000 in monthly invoicing on average to qualify
• Some of the invoice value is held in reserve until your customer pays. Scale Funding deducts its fee before releasing that balance.

5. Riviera Finance

Riviera Finance specializes in non-recourse factoring. It covers approved customer credit risks under the agreement, which can protect your business if a customer becomes insolvent. The company has 25+ offices across the US and Canada for businesses that prefer local support.

As of October 2026. Sources: Riviera Finance FAQs and non-recourse factoring page.

Pros:

• Non-recourse protection for approved customer credit risks, subject to agreement terms
• Receivables management and collection support
• No start-up fees

Cons:

• Fees not published as of October 2026, which makes upfront budgeting harder
• Credit protection has exclusions. Confirm coverage for disputes and other non-payment events
• Standard commitment is six months

How Do You Compare AR Factoring Companies?

The right factoring agreement should leave you with enough cash to run your business at a cost you can sustain. Compare each offer using the same invoice amount and payment terms, then check what happens when you need to pause funding or a customer pays late.

Advance Rate

The advance rate determines how much of your invoice value lands in your bank account immediately. The industry standard is 80%–95%, with the remaining balance (the "reserve") released after your customer pays, minus the factoring fee.

Fees and Total Cost of Factoring

Factor fees (also called discount rates) commonly range from 1% to 5% of invoice value, but billing periods and fee structures vary. The stated rate is rarely the complete picture. Watch for:

• Origination fees: Some providers charge a fee to set up your factoring account
• Minimum volume fees: Some companies charge a fee if you do not factor enough each month
• Incremental fees: Some structures charge additional rates beyond the first 30 days if your customer pays late
• Cancellation fees: Early exit from a long-term contract may cost you

A worked example: you factor a $50,000 invoice on Net 30 terms.

• 2% fee with a 100% advance: you pay $1,000 and receive $49,000 upfront. Effective cost: 2.04% of the cash you receive ($1,000 ÷ $49,000).
• 3% fee with an 80% advance: you pay $1,500, receive $40,000 upfront and $8,500 after your customer pays. Effective cost: 3.09% of the cash you receive ($1,500 ÷ $48,500).

That 1-point fee difference is $500 on one invoice, or $6,000 a year if you factor an invoice like this every month.

Always ask for an all-in fee comparison, not just the base rate.

Contract Terms and Exit Flexibility

Review the contract length, monthly minimums, renewal terms, required notice, and early termination fees. For seasonal businesses, check whether you can pause funding without a penalty.

How the Company Treats Your Customers

When you factor an invoice, your customer pays the factoring company directly, not you. That interaction reflects on your business. A poor collections experience can damage relationships you have spent years building.

Software Integration and Automation

Check whether the provider connects to your accounting software and lets you upload invoices, track funding, and automate recurring submissions. Integrations can reduce manual data entry.

Recourse vs. Non-Recourse Factoring Explained

One of the most important questions to ask any factoring company is, “what happens if my customer does not pay?”

Recourse Factoring

With recourse factoring, if your customer fails to pay the invoice, the liability returns to you. You must buy back the unpaid invoice or swap it for another one of equal value. Because the factoring company carries less risk, recourse factoring generally comes with lower fees.

Recourse factoring is the most common arrangement. It is a reasonable trade-off when you have reliable, creditworthy customers.

Non-Recourse Factoring

With non-recourse factoring, the factoring company takes on specific customer credit risks, such as insolvency. The agreement sets out what is covered and which situations remain your responsibility.

Because the factoring company takes on the credit risk, non-recourse factoring typically comes with higher fees.

Industries That Use Accounts Receivable Factoring

AR factoring works best for B2B businesses with invoice-based revenue and customers on net terms. Common industries include staffing, oilfield and energy services, freight and trucking, manufacturing, technology, professional services, wholesale and distribution, healthcare, and government contracting.

See the full list of industries FundThrough serves →

Frequently Asked Questions

How much does accounts receivable factoring cost?

Accounts receivable factoring usually costs 1% to 5% of the invoice value per month, depending on the provider, payment terms and your customers' credit. FundThrough's typical fee is 1.9%–2.9% per 30 days for total outstanding invoices up to $999,999. Longer payment terms cost more, and additional fees apply if an invoice isn't paid by its due date.

How long does it take to get set up with an accounts receivable factoring company and receive the first funding?

Getting set up with an accounts receivable factoring company takes longer than later fundings, because the provider reviews your business, verifies invoices and confirms payment redirection with your customer. With FundThrough, funds arrive within 24 hours after the first funding. Setup times vary by provider, so plan for onboarding before you rely on a funding date.

How is FundThrough different from other accounts receivable factoring companies?

FundThrough is different because it advances up to 100% of invoice value, minus the fee, based on your customer's risk profile. With spot factoring, you choose which eligible invoices to fund, with no monthly minimum after the first funding. Integrations with QuickBooks, Xero, NetSuite and OpenInvoice sync your invoices, and Auto-Fund can submit eligible invoices from recurring customers automatically.

Will the factoring company contact or chase my customers for payment?

Yes, the factoring company will contact your customer, usually to confirm the invoice and redirect payment through a notice of assignment. FundThrough coordinates that first contact with you, then waits for your customer's original payment terms. If an invoice becomes significantly overdue, FundThrough contacts you before reaching out to your customer. Learn how FundThrough works with your customers.

Can the monthly factoring minimum be flexed or paused if my business is seasonal?

It depends on the provider. Some allow seasonal adjustments, while others charge a fee if you fall below a monthly volume commitment, so check whether the minimum applies every month and whether a pause needs approval. FundThrough has no monthly minimum after the first funding, so you can pause when you don't need funding and resume when you do.

If my customer doesn't pay a factored invoice, am I the one on the hook?

Yes, with recourse factoring your business is responsible if your customer doesn't pay a factored invoice. Non-recourse factoring covers only the credit events listed in the agreement. FundThrough offers recourse factoring. If your customer doesn't pay, you're responsible for the invoice, and we'll work with you to replace it or settle the balance.

How do I cancel accounts receivable factoring and go back to being paid directly?

To cancel accounts receivable factoring, follow the exit terms in your agreement, settle any funded invoices and give your customers new payment instructions. FundThrough offers flexible and committed options. Committed options include early termination fees if you end the agreement before the committed period ends. Contact the FundThrough team to close your account and end payment redirection.

Is accounts receivable factoring a loan?

No, accounts receivable factoring is generally structured as a sale of your invoices, not a loan, so there are no scheduled loan repayments. With recourse factoring, your business is still responsible if a customer doesn't pay. FundThrough offers recourse factoring and will work with you to replace an unpaid invoice or settle the balance.

What's the difference between AR factoring and a line of credit?

AR factoring and a line of credit differ in how they're approved and repaid. Factoring advances cash against specific invoices, based mainly on your customers' credit. A line of credit is a loan you draw on and repay with interest, based on your business's credit and financials. If your lender holds a lien on your receivables, it may need to be subordinated.

Ready to Get Your Invoices Paid Early?

Get your eligible invoices paid early with FundThrough. You choose which invoices to fund, with flexible and committed options to fit your needs.

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