Best Invoice Factoring Companies for US Businesses

person with calculator with physical coin money in front of them

Fast, flexible finance – get the facts on five of the finest factoring companies in the US

It’s the same old issue. You’ve done the work, paid your overheads and staff, and sent out invoices to your clients. Yet, instead of seeing a healthy bank balance, you’re struggling for cash flow. Why? Because those clients are making you wait 30, 60, 75… even 90 days for payment. So how can you get quick, scalable, and secure finance to bridge those uneasy waits for cash?

With invoice factoring, that’s how. For a small fee, invoice factoring companies essentially ‘buy’ your unpaid invoices. The company (or factor) pays out up to 90% of your sales ledger upfront, in cash – freeing you up the time and money to start fueling some serious growth for your business.

But which invoice factoring company is right for you? Well, that depends on a lot of factors. Company size, industry, sales volume… the list goes on. To help you hone in on the right choice for your SMB, we’ve researched and selected our top five invoice factoring companies for small US businesses and beyond.

So what did we find?

Well, our research showed that BlueVine is best for low fees, while Paragon Financial Group offers some of the most generous advance rates on the market. Payability will suit ecommerce merchants of all sizes, while RTS Financial is a treat for truckers.

So read on as we crunch the rates, rules, and requirements of the five finest invoice factoring companies in the US, or jump straight to our FAQs to learn more about invoice factoring. If you’re short on time, you can also fill out our quote-finding form to receive free quotes from top invoice factoring suppliers.

Best invoice factoring companies
Many invoice factoring companies offer apps that put your finance (quite literally) in your hands

Invoice Factoring Company Comparison

Want to crunch the numbers before you read? Dive into the table below to get started.

Invoice Factoring CompanyRates fromAdvance rateMinimum finance amountMaximum finance amountRead more
bluevine logo small0.35 – 1.35% per week85 – 90%$5,000$500,000BlueVine Review
rts financial logo smallNot stated97%Not statedNot statedRTS Financial Review
payability logo small0.75% per week80 – 85%$100No minimumPayability Review
lendio logo smallDependent on lenderDependent on lenderDependent on lenderDependent on lenderLendio Review
paragon financial group logo small1.25 – 2.5%80 –90%$30,000$10,000Paragon Financial Group Review

The Top 5 Invoice Factoring Companies

Looking at fees, advance rates, terms, qualifications, and funding amounts, we evaluated the best invoice factoring companies in the US. These turned out to be RTS Financial, BlueVine, Payability, Lendio, and Paragon Financial Group.

Let’s find out what makes these guys the best of the best.


Best for low rates

If you need quick, reliable funding at low rates (and, let’s face it, who doesn’t), BlueVine should be the first port of call for your business. Apply within 10 minutes, get accepted within 24 hours, and benefit from rates as low as 0.25% per week. BlueVine also offers spot factoring, giving you ultimate control over which invoices you’d like finance for. Plus, BlueVine differs from the norm in that it won’t handle credit control for you. Your customers will remain blissfully unaware that you’re using finance, allowing you to stay on top of those all-important customer relationships.

BlueVine, the numbers:
  • 85 – 90% advance rate available
  • Finance available on $5,000 to $5,000,000 in invoices per month
  • Rates of between 0.25% and 1.35% per week

You’ll need:

  • Three months in business
  • 530+ FICO score
  • At least $100,000 in annual revenue
  • To be a B2B business


  • Offers some of the lowest rates on the market
  • Low monthly minimum
  • Straightforward, transparent fees


  • Annual revenue minimum may exclude some small businesses and startups from applying

RTS Financial

Best for truckers

Dedicated exclusively to the haulage industry, RTS Financial provides simple, effective freight factoring for truckers all over the US. Whether you’re a one-vehicle owner-operator or you’re managing a thousand-strong fleet, RTS Financial offers fast cash flow, with an advance rate of up to 97% of your invoice’s value. The only catch? You’ll need to be in the trucking industry to make the most of these high advance rates. If you are in haulage though, buckle up – with RTS Financial, you’ll benefit from same-day funding, zero minimum volume fees, and an excellent fuel card program. Sounds like the wheel deal to us!


  • There isn’t a monthly minimum value in invoices you’ll have to factor – if you’re a trucking company
  • Stellar customer support
  • Comes with an excellent mobile app that streamlines and simplifies the factoring process


  • RTS Financial doesn’t post its rates or borrower qualification requirements online
Truckers should also try: Triumph Business Capital


Best for ecommerce businesses

Specialising solely in catering to ecommerce merchants, Payability is a leading source of cash flow for online businesses across the US. And it’s not hard to see why – you can be up and running within a day, and there’s no need for a credit check or any external documents. What’s more, there’s no limit to the funding you can receive, and the rates are as flat and transparent as your bay window. If you’re an Amazon aficionado, an Etsy enthusiast, or a Walmart wizard, Payability can help slow your cash flow woes.


  • No termination or prepayment penalty fees
  • Extremely low rates


  • Advance rate of between 80 and 85% is lower than many other providers
  • Available only to ecommerce vendors
Payability, the numbers:
  • 80 – 85% advance rate available
  • Finance available on $100+ in invoices per month
  • Rates from 0.75% per week

You’ll need:

  • Nine months in business
  • Average monthly sales of $10,000 or more


Best for speed and simplicity

Lendio works a bit differently to some of the other providers on this list. It essentially acts as a marketplace, connecting your business with over 75 leading lenders. Because of this, exact rates are hard to come by – what you’ll pay will depend on which lender and loan option you end up picking. Not knowing exactly how much you’ll pay is the tough part. The rest is easy – apply in 15 minutes, and access capital within a day. And don’t think you’re just limited to invoice factoring, either – there’s a whole range of flexible funding options to choose from, including startup loans and equipment financing.

You’ll need:
  • Six months in business
  • 550 FICO score
  • Monthly sales of $10,000 or more


  • The range of lenders offers more flexible funding options for your business
  • Acceptance requirements are lenient


  • Lendio works as an aggregator, so doesn’t provide you with finance directly
  • Because of this, rates can’t be transparent

Paragon Financial Group

Best for high advance rates

When it comes to high advance rates, Paragon Financial Group comes second only to RTS Financial – but has the added benefit of working with all kinds of businesses, not just truckers. You’ll receive an upfront advance of up to 90% of your invoice’s value*, while steering clear of any hidden fees. Paragon also offers non-recourse factoring, which means it’ll bear the brunt of any bad debt or insolvency on the part of your clients. The only drawback is that this all comes at a price – you’ll need to factor a minimum of $30,000 in invoices per month. Okay for large businesses, sure – but a bonafide budget-buster for startups.

Paragon Financial Group, the numbers:
  • 80 – 90% advance rate available
  • Finance available on $30,000 to $10,000,000 in invoices per month
  • Rates of between 0.25% and 1.35% per week

You’ll need:

  • Nine months of selling history
  • Average monthly sales of $10,000 or more


  • Boasts some of the highest advance rates available
  • Offers non-recourse factoring, protecting you from the ill effects of bad debt


  • Large monthly factoring minimum may outprice smaller businesses
  • It can take up to ten days to receive the initial funding

Next Steps

Selecting the invoice factoring company that’s best-suited to your business is always going to be tricky. Though the picks above are a good start, the solution that’s right for you will always be based on the unique needs of your business.

You’ll have to factor in your sales volume, annual turnover, business size, and industry, while also taking into account the creditworthiness of both your business and your customers. On top of all this sits another big question – how do you make sure you’re getting the best value for your SMB?

By using our quote-finding form, that’s how. Here’s how it works.

  1. Take a minute to answer a couple of quick questions about your industry and sales volume (a ballpark figure is just fine!)
  2. Sit back, relax, and receive quotes from several leading invoice factoring companies in the US, all of which can cater specifically to your needs.

It’s completely free, too – you just need to be based in the US to qualify. Why not give it a try?


How do invoice factoring companies work?

Invoice factoring (also known as debt factoring) is when a business essentially ‘sells’ its unpaid invoices to a third party invoice factoring company (the factor). This quick injection of funds allows businesses to free up cash flow, and invest in new projects, staff, and inventory.

The factor pays out a large percentage of the invoice (around 85 – 90%), and takes charge of chasing (and accepting) the payment. When the invoice is eventually paid, the factor releases the remaining 10 – 15% of the invoice’s value, minus a small cut. Smart, scalable… simple!

What are the risks of invoice financing?

As with anything that concerns borrowing money, invoice finance does come with a few inherent risks. Firstly, you’ve got to remember that it’s not free money – you’re paying a fee not only to use the factoring facility, but on every invoice you get funding for. Your profit margins are going to take a hit.

Another risk involves a loss of control over your sales ledger and credit control. Because the invoice factoring company you use will most likely handle debt collection for you, it may be harder to maintain your relationships with your customers. That’s because your clients will know that you’re using outside finance – something that, even in today’s world, may come with a stigma.

Plus, there’s also the chance that you could end up over-reliant on invoice factoring, and be unable to leave an agreement without it impacting your cash flow.

Sure, there are risks. But remember, invoice factoring is still one of the safest forms of finance. You only ever borrow against money that’s already owed to your business in unpaid invoices. This way, you avoid racking up debt in the form of overdrafts, loans, or credit cards, and get finance that grows with your business.

Should you consider invoice discounting instead?

At this stage in your research, you’ve probably already heard of invoice discounting. Like factoring, it’s a form of finance leveraged against your unpaid invoices. However, unlike with factoring, it’s confidential. Your customers won’t know you’re using third party finance, and you’ll be responsible for liaising with them to collect payment.

Because it doesn’t include credit control, invoice discounting tends to be cheaper than factoring. So if costs are a consideration – and if you’d like your financing to remain under wraps – invoice discounting is the better option for you. That said, discounting deals may be trickier to get accepted for – you’ll need an annual turnover of at least $100,000 to be considered.

Written by:
Rob Binns
Rob writes mainly about the payments industry, but also brings to the table industry-specific knowledge of CRM software, business loans, fulfilment, and invoice finance. When not exasperating his editor with bad puns, he can be found relaxing in a sunny (socially-distanced) corner, with a beer and a battered copy of Dostoevsky.