Invoice Factoring

Small Business

The Best Invoice Factoring Companies to Work With

best invoice factoring companies

If you enter the phrase “the best invoice factoring companies to work with” into a search engine, you’ll get results for ads, review sites, and links to multiple invoice factoring companies. When you’re looking for the best invoice factoring company to work with, it’s hard to know which ones to short-list, let alone choose for your final decision. 

Which is why we went ahead and created the short list for you. While FundThrough provides invoice factoring services to help small businesses get paid faster, we know that a quick internet search will show you that there’s a world of options out there when it comes to funding. Because transparency is one of our core values, we want you to know all your options so that you can make the best choice for your needs. So in the spirit of full transparency, here are a few other best invoice factoring companies to consider. 

Best Invoice Factoring Companies


Founded in 2013, Fundbox uses analytics, engineering, and predictive modeling to increase cash flow for small businesses. They boast 500,000+ small business customers with $3 billion funded to small businesses since their launch. If your cash flow needs typically run less than $150,000, their funding options might make sense for your needs.

They offer a few different funding options including a revolving line of credit up to $150,000, a Flex Pay product, and Fundbox Plus membership. Plus benefits include 20% lower fees, more time to pay, and exclusive benefits.

The fees on their revolving line of credit run about 4-9% over the repayment term – which is either 12 or 24 weeks. To qualify, your business will need to:

  • Be based in the U.S.
  • Have $100,000+ in annual revenue
  • Have a business checking account
  • Be in business 6+ months
  • Personal credit score 600+

The Flex Pay product allows business to pay for important business expenses they do not want to (or cannot) put on a credit card, with their Fundbox line of credit as collateral. Flex Pay can be used for payroll, insurance, taxes, raw materials, inventory, leases, and more. There is a processing fee if you want to repay the balance with a credit card. To qualify, you must:

  • Have a Fundbox line of credit
  • Connect your business checking account
  • Repay within 3 days or your line/bank account will be debited


Kabbage provides funding directly to small businesses and consumers through an automated lending platform. Another full service option, they provide funding solutions such as lines of credit, payment processing, and business checking accounts. 

A unique aspect of their business is that they are an American Express owned-company, giving them extra resources to serve small business customers and solve their cash flow challenges.

For the checking account, there are no balance requirements, no monthly fees, and no charge for out-of-network ATM withdrawals. To sign up, you’ll need to provide some basic information about your business, which must be located in the U.S.

For the line of credit, you’ll pay a monthly fee on the amount you use, and only during the months you have an outstanding balance. Creditworthiness and other factors are taken into consideration during the approvals process. Each withdrawal results in an instalment loan, with the following fees: 

  • 2-9% for 6-month loans
  • 4.5-18% for 12-month loans
  • 6.75-27% for 18-month loans

Kabbage also offers payments processing for transactions up to $10,000, at a rate of 2.25% per transaction. The system provides next-day payments to your business checking account. You can either send invoices or provide a custom pay link to your customers. If you aren’t a Kabbage customer when you apply, you’ll need to provide information about your business and banking history.


ClearCo is a lending firm (founded by founders for founders) that specializes in revenue share agreements with startups that don’t require giving away equity or ownership. With more than $3 billion invested in 7,000+ businesses, they claim to be the world’s largest e-commerce investor. 

To qualify, you’ll need to connect apps that provide ClearCo with insights into your business (one sales and one marketing account). They’ll use this data to measure key growth metrics like monthly revenue and ad performance. Within 48 hours, they provide three tailor-made funding offers, ranging from $10K-$20M.

To qualify, you must: 

  • Be an e-commerce or consumer SaaS company
  • Have 6+ months of revenue greater than $10K/month
  • Be incorporated in Canada, USA, Australia, United Kingdom, Ireland, Belgium, Germany, Finland, Austria, or the Netherlands

ClearCo charges a 14% fee upon issue of any funding.


A division of The Southern Bank Company, altLINE offers invoice factoring and A/R financing for a variety of industries, though their focus is mainly on staffing and consulting. Because they are owned by a bank, they are a direct source of cash, enabling them to cut out some extra borrowing fees that other factoring companies sometimes require. If you’re more comfortable working with a community-based bank, altLINE could be the partner you’re looking for.

For invoice factoring through altLINE, you’ll need to submit an application, which includes some basic information about yourself and your business. Fees through altLINE start at 0.5%, and they’ll advance up to 90% of an invoice’s value. There’s no application fee, ACH fee, or any other one-time fees. 

Their A/R financing uses a similar application process. Rates also start from 0.5%. 


Because this list includes companies that can help you fund your business (a.k.a. the best invoice factoring companies), we’d be remiss if we didn’t mention how we can help, too. FundThrough gives you peace of mind about your cash flow situation, specializing in both invoice factoring and invoice financing. You can fund invoices up to any amount with no limit. (We’ve funded invoices in the millions of dollars plenty of times – true story!)

When you fund with FundThrough, what you see is what you get. We believe in transparent pricing, with no hidden fees. With us, invoice factoring fees range from 2.5% to 7.5%, while our invoice financing rates start at 0.5% weekly. Unlike many of our competitors, we offer 100% advance rates, with no limit to how much you can fund. There’s also no monthly minimums, and no long-term commitment required. Just a fast, flexible, easy source of working capital whenever you need it.

Take a look at our invoice funding solution to see if you qualify. You can always reach out to us to talk over your situation. We work with businesses based in both Canada and the U.S.

Keep in mind that business funding options don’t have to be mutually exclusive. Like our CEO Steven Uster mentioned in a recent blog post about whether you should get a line of credit, different financial tools can be used for different purposes at the same time. (For example, you could use a revolving line of credit for operating expenses and invoice funding for taking on large projects or purchases).

Want to get started with FundThrough?

If you think we’re one of the best invoice factoring companies for you on this list, get started by seeing if you qualify. You can also connect your QuickBooks, OpenInvoice, or WorkBench account to start funding an invoice today.

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