Invoice Factoring Cost Calculator
How This Works
We calculate your actual cash received after factoring fees. Most companies offer 90% advance rate, so you get 90% upfront. Fees typically apply per 30-day period.
Your Factoring Results
For a $50,000 invoice with 90 days payment terms and 2.5% factoring rate:
$45,000 advance amount
$3,750 total fee
$41,250 net amount received
When your customers take 60, 90, or even 120 days to pay their invoices, your business doesn’t wait. Payroll, rent, and inventory don’t pause. That’s where invoice factoring comes in. It’s not a loan. It’s not a line of credit. It’s you selling your unpaid invoices to a company that gives you cash now-usually within 24 hours-so you can keep running without begging banks for help.
Over 450,000 U.S. businesses used invoice factoring in 2025, up from 380,000 just three years ago. Why? Because banks tightened lending after interest rates hit 5.5%. Factoring doesn’t care about your credit score. It cares about whether your customers pay on time. If you’re in trucking, staffing, manufacturing, or B2B services, this could be the difference between staying open and shutting down.
How Invoice Factoring Actually Works
Here’s the real process, no jargon:
- You send an invoice to a client (say, $50,000 for a delivery job).
- You sell that invoice to a factoring company.
- The factor gives you 80%-100% of the invoice amount right away-usually via ACH or wire transfer.
- Your client pays the full $50,000 to the factor, not you.
- The factor keeps a small fee (say, 2.5%) and sends you the rest.
No debt. No collateral. No long-term contract. You’re not borrowing money-you’re getting paid faster. The factor takes the risk if your client doesn’t pay. That’s called non-recourse factoring, and it’s a game-changer for small businesses.
What to Look for in a Factoring Company
Not all factoring companies are equal. Some hide fees. Some lock you into 12-month contracts. Some only work with trucking. Here’s what actually matters:
- Advance rate: How much do they give you upfront? Top companies offer 90%-100%. Anything below 80% is a red flag.
- Fee structure: Fees should be clear: X% per 30 days. Watch out for “processing fees,” “minimum monthly fees,” or “termination fees.”
- Funding speed: Can you get money in 24 hours? Or does it take a week? If you’re paying employees tomorrow, speed is critical.
- Industry specialization: A company that knows trucking will understand fuel advances, broker credit checks, and load disputes. A generalist won’t.
- Contract terms: No long-term contracts. No minimum volume. Pay-as-you-go is the standard now.
- Customer service: Who handles your invoicing? Who calls your clients? If you’re stuck with a bot, you’re asking for trouble.
The Top 6 Invoice Factoring Companies in 2026
Based on real user data, expert reviews, and industry trends from October 2025, here are the six companies that consistently deliver:
1. FundThrough - Best Overall
For most businesses, FundThrough is the easiest, fastest, and most transparent option. They offer up to 100% advance rates with no hidden fees. Their fee? Just 2.75% per 30 days. No minimums. No contracts. You can factor one invoice or 100.
They’ve built an AI system that approves applications in under two hours. Their platform integrates directly with QuickBooks, Xero, and NetSuite, so you don’t have to manually upload invoices. Over 20,000 businesses use them, including software startups, staffing agencies, and wholesale distributors.
On Trustpilot, they have a 4.8/5 rating. Users say: “I got $87,000 in 18 hours after being denied by three banks.”
2. altLINE - Best for Small Businesses
altLINE is the invoice factoring arm of The Southern Bank Company. That means they’re bank-backed, which gives them serious credibility. Their rates start as low as 0.80% per 30 days for qualified clients in staffing, manufacturing, and trucking.
They offer 80%-90% advance rates, same-day funding, and a dedicated account manager who handles everything-from sending invoice notices to chasing late payments. Small business owners love that they don’t have to do any admin work.
They cap invoices at $5 million, so if you’re doing large government contracts, this isn’t your fit. But if you’re a 10-person staffing firm with $200K/month in receivables? Perfect.
3. eCapital - Best for Large Invoices
If your invoices are $500,000 or more, eCapital is the only serious option. They handle invoices up to $30 million. Their rates start at 1.5%, and they use AI to approve applications in minutes.
They offer both recourse and non-recourse factoring, so you can choose your risk level. Their platform lets you track payments in real time and export data to accounting software.
But here’s the catch: Trustpilot reviews show a 3.2/5 rating. The main complaint? Fees pile up if your client pays late. One user reported a $100,000 invoice costing $4,200 in fees because the client took 90 days. Read the fine print.
4. Riviera Finance - Best for In-Person Service
Riviera Finance is one of the last companies with 25+ physical offices across the U.S. If you prefer face-to-face meetings, this is your pick. They’ve been around since 1969 and have served over 20,000 clients.
They offer up to 95% advance rates, 24-hour funding, and non-recourse options. Trucking companies swear by their broker default protection. On Google Reviews, they have a 4.1/5 rating.
Downside? You can’t factor invoices over $500,000. And if you’re not near one of their offices, you’re stuck with email and phone. But if you’re a mid-sized manufacturer in Ohio or Texas? Their local reps know your industry inside and out.
5. Triumph Business Capital - Best for Trucking
If you run a trucking company, don’t waste time with general factoring firms. Triumph is built for freight.
They offer instant payments-sometimes within minutes-after you drop off a load. Their non-recourse contracts protect you if a broker goes bankrupt. They also provide fuel cards, 24/7 broker credit checks, and equipment financing.
According to Small Business Trends, trucking companies using specialized factors like Triumph report 23% higher satisfaction than those using general ones. Their fees start at 1.8% per 30 days, and they don’t charge for fuel advances.
6. RTS Financial - Best for Freight Factoring
RTS Financial doesn’t do anything but trucking. And that’s why they’re so good at it. They offer competitive rates starting at 1.8%, same-day funding, and a dedicated team that handles all billing and collections.
They’ve built tools specifically for owner-operators: load tracking, fuel discount programs, and automated payment scheduling. Their clients report fewer disputes and faster payments than with other factoring companies.
They’re not the cheapest, but they’re the most reliable for freight. If you’re a solo owner-operator or a small fleet, RTS is worth the call.
Who Should Avoid Invoice Factoring?
Not every business should use factoring. Here’s when it’s a bad fit:
- You have fewer than $50,000 in monthly receivables. Most companies require this minimum.
- Your customers pay in under 30 days. If you’re already cash flow positive, factoring fees eat into your profit.
- You’re in retail or consumer services. Factoring works for B2B. If your customers are individuals paying with credit cards, this won’t help.
- You’re unwilling to tell your clients you’re factoring. Most companies require you to notify them. If that’s a dealbreaker, skip it.
What Happens When Your Client Pays?
Here’s the myth: “The factor takes your customer.”
No. The factor just collects the payment on your behalf. Your customer still owes you-they just send the money to the factor’s account. Once the factor gets paid, they send you the remainder (minus their fee).
Most companies send a notice to your client: “Please send all payments to [Factor Name] for invoice #[number].” It’s professional. It’s standard. And if your client is late, the factor handles it-so you don’t have to.
Real-World Example: A Staffing Agency in Phoenix
A staffing company in Phoenix had $180,000 in unpaid invoices every month. Their clients took 45 days to pay. They were missing payroll by 3 days every cycle.
They signed up with altLINE. Got approved in 36 hours. Started factoring all invoices. Got 85% upfront. No contracts. No minimums.
Within 60 days, they hired two new recruiters. They bought new software. They stopped overdrawing their checking account. Their owner said: “It wasn’t magic. It was just cash when I needed it.”
How to Get Started
Here’s a simple 5-step plan:
- Check your monthly receivables. Do you have at least $50,000? If yes, move on.
- Identify your industry. Are you in trucking? Staffing? Manufacturing? Match with a specialized provider.
- Compare advance rates and fees. Don’t just look at the lowest rate-look at the total cost over 60 days.
- Apply online. Most companies take under 20 minutes. You’ll need your last 3 months of invoices and your client list.
- Start factoring. Send your first invoice. Get paid in 24 hours. Repeat.
Most companies offer a free consultation. No pressure. No credit check. Just a quick chat to see if it makes sense.
Final Warning: Watch Out for Hidden Fees
Harvard Business Review found that 40% of factoring companies inflate costs with hidden fees. Common traps:
- “Minimum monthly volume fees” - you pay even if you don’t factor anything.
- “Termination fees” - you’re charged if you leave after 3 months.
- “Processing fees per invoice” - $5-$15 per invoice adds up fast.
- “Late payment penalties” - if your client pays late, you pay extra.
Always ask: “What’s the total cost if my client pays in 60 days?” If they can’t answer, walk away.
Is invoice factoring the same as a loan?
No. A loan gives you money you have to repay with interest. Factoring is you selling an asset (your invoice) for cash. You don’t owe anything back. The factor collects from your customer. There’s no debt on your balance sheet.
Can I use invoice factoring if I have bad credit?
Yes. Factoring companies don’t look at your credit score. They look at your customers’ credit. If your clients are reputable businesses with good payment histories, you’ll qualify-even if your own credit is poor.
How long does it take to get funded?
Most top companies fund within 24-48 hours. Some, like Triumph and FundThrough, can fund in under 6 hours. If it takes longer than 3 days, the company isn’t efficient.
Do I have to factor all my invoices?
No. You can choose which invoices to factor. Many businesses only factor invoices from slow-paying clients. Others factor everything for steady cash flow. It’s completely flexible.
What industries use invoice factoring the most?
Trucking and transportation (32% of the market), staffing services (24%), manufacturing (18%), and B2B wholesale/retail (15%). Professional services and building supplies are also growing fast.
Next Steps
Don’t wait until you can’t pay your team. Start by listing your top 3 monthly invoices. Calculate what 90% of that amount would be. Now ask yourself: Would that cash solve your biggest problem this month?
If yes, pick one company from this list. Apply. Get funded. Keep going. Factoring isn’t a last resort-it’s a smart tool for growing businesses. Use it right, and you’ll wonder why you didn’t start sooner.
