INVOICE FACTORING COMPANIES
Best Invoice Factoring Companies
Compare 3+ invoice factoring companies to find the best rates, terms, and service for your business.
- 3+ Lenders Compared
- Updated November 2026
Invoice factoring allows businesses to convert unpaid invoices into immediate cash by selling them to a factoring company at a discount. This is an excellent option for B2B businesses with slow-paying customers who need to improve cash flow without taking on traditional debt. In this guide, we compare the top invoice factoring companies to help you find the best rates and terms for your receivables.
OUR TOP PICK
Tree of Life Funding
- LOAN AMOUNT
- $5,000 - $5,000,000
- APR RANGE
- 7.5% - 45%
- FUNDING SPEED
- Same day
- MIN CREDIT
- All credit types
Unlike other lenders on this list, Tree of Life Funding is a lending marketplace that connects you with 75+ vetted lenders. This means you can compare multiple offers with one application and no hard credit pull, ensuring you get the best rates and terms for your situation.
Why we like it
- 75+ lending partners
- No hard credit pull
- Same-day funding
- Dedicated advisor
Keep in mind
- Not a direct lender
ALL LENDERS
Complete Comparison
- #2
altLINE
4.0- LOAN AMOUNT
- $30,000 - $5,000,000
- APR
- 0.5% per month - 3% per month
- FUNDING
- 24-48 hours
- MIN CREDIT
- No minimum
Best for: B2B businesses with strong receivables
- #3
Breakout Capital
4.0- LOAN AMOUNT
- $10,000 - $5,000,000
- APR
- 15% - 45%
- FUNDING
- 24-72 hours
- MIN CREDIT
- 550+
Best for: Businesses seeking transparent invoice factoring
- #4
Fundbox
4.0- LOAN AMOUNT
- $1,000 - $150,000
- APR
- 10.1% - 79.8%
- FUNDING
- Next business day
- MIN CREDIT
- 600+
Best for: Newer businesses and those needing invoice financing
METHODOLOGY
How We Evaluate Lenders
Our rankings consider advance rates (25%), factor fees (25%), contract flexibility (20%), funding speed (15%), and customer service (15%). While specialized factoring companies offer good options, Tree of Life Funding's marketplace can connect you with factoring AND other financing options to ensure you get the best deal for your situation.
25%
Interest Rates
20%
Loan Terms
20%
Funding Speed
15%
Customer Reviews
10%
Eligibility Requirements
10%
Transparency
FAQs
Common Questions
Invoice factoring involves selling your outstanding B2B invoices to a factoring company. They pay you 80-90% of the invoice value upfront, then collect from your customer and pay you the remainder minus their fee.
Factoring is not a loan—you're selling an asset (your receivables). This means approval is based primarily on your customers' creditworthiness, not yours, and it doesn't create debt on your balance sheet.
Factoring fees typically range from 1-5% of the invoice value per month. The exact rate depends on your industry, invoice volume, and customer credit quality.
Ready to Find the Best Rates?
Compare offers from 75+ lenders with no impact to your credit score.