Best Invoice Factoring Loans for Small Businesses

Did you know that small businesses have $825 billion in unpaid invoices?¹ Fortunately, invoice factoring can help you obtain fast access to capital by leveraging unpaid invoices.
Best overall
  • Icon Pros  Dark
    Quick and easy application
  • Icon Pros  Dark
    Access to many lenders
Best credit monitoring
  • Icon Pros  Dark
    Free credit reports
  • Icon Pros  Dark
    Lots of different lenders
Best for low credit
  • Icon Pros  Dark
    Low minimum credit score requirements
  • Icon Pros  Dark
    Speedy approval process
Most lenient
  • Icon Pros  Dark
    Simple, quick process
  • Icon Pros  Dark
    Relaxed borrower qualifications
Best for niche industries
Triumph Business Capital
Triumph Business Capital
  • Icon Pros  Dark
    Industry-specific lending options
  • Icon Pros  Dark
    Strong customer service
Price Tag Approach

Brands considered

Money Approach

Features compared

Calendar Approach

Days of research

Person Approach

Business owners talked to

Unpaid invoices are an unfortunate reality for small businesses across the nation. And as a business owner, there’s nothing more frustrating than not getting paid for your goods or services. These cash flow gaps can make it hard to manage expenses. Fortunately, invoice factoring solutions, commonly referred to as accounts receivable financing, make it easier to pay your bills on time, allowing you to focus on the other tasks you need to get done.

We understand that choosing an invoice factoring company can be a complicated process. To help you cut through the noise, we’re exploring our favorite invoice factoring companies for small businesses.'s best invoice factoring companies of 2021

Compare the top invoice factoring companies

Lending type
Loan min./max.
Lowest listed rate
Get a loan


Lending marketplace

Up to 90% of invoice

2% factor rate


Lending marketplace

Up to 100% of invoice15% APR




4.66% draw rate



$5,000/$5 million

0.25% per week

Triumph Business Capital




Data effective 12/8/20. At publishing time, amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

Lendio: Best overall


Lendio is one of the most recognizable small-business loan marketplaces. Rather than originating loans on its own, Lendio acts as a “matchmaker” by connecting borrowers with a network of 75+ lenders—some of which are included on this list. Essentially, they’re the Amazon of small-business loans.

Lendio offers loan amounts of up to 90% of receivables and a factor rate as low as 2%. To improve your chances of receiving financing, Lendio recommends that you meet the following eligibility requirements:

  • 6 months of financial history
  • $50,000 per month in revenue
  • 550 or higher credit score

If your company meets these eligibility requirements, Lendio should be your go-to lending option. Its fast, easy, and comprehensive platform has helped over 33,000 small-business owners secure more than $650 million in loans since 2011.

Determine if Lendio is right for your business by considering the following factors:

Pro Bullet You require quick approval and fast funding.
Pro Bullet You want to weigh your loan options.
Pro Bullet You’re comfortable with rate uncertainty.
Con Bullet You’ve been in business fewer than six months.
Con Bullet Your credit score is under 550.
Con Bullet Your monthly income is less than $10,000.

Nav: Best for monitoring personal and business credit


Like Lendio, Nav is not a lender. Its lender marketplace helps business owners find the best financing option based on their credit scores and business profiles.

Even better, Nav’s marketplace is lender neutral, meaning that its lender recommendations aren’t swayed by pressure (or payment) from the lenders themselves.

What makes Nav stand out over Lendio, however, is its easy, transparent business credit tools. In addition to personalized financing matches, Nav offers the following benefits for free:

  • Credit score and report
  • Tools to build credit
  • 24/7 monitoring and alerts
  • Tips and insights

If you need more in-depth features, opt for Nav's premium plan at $24.99 per month. Enjoy all the benefits of the free plan, plus two personal credit scores, two business credit scores, full credit reports, and $1 personal identity theft insurance protection.

Fun fact
Levi King, who co-founded Lendio, founded Nav to help business owners become better-qualified applicants.

Determine if Nav is right for your business by considering the following factors:

Pro Bullet You have a low credit score.
Pro Bullet You want a variety of loan options.
Pro Bullet You value fast approval and minimal paperwork.
Con Bullet You can’t afford the relatively high rates.
Con Bullet You’re a B2C company.

Fundbox: Best for low credit scores


While Fundbox doesn’t offer invoice factoring, it caught our eye thanks to its fast financing. With Fundbox’s line of credit, business owners can borrow up to $150,000.

Unlike invoice factoring, the loan must be repaid in 12 or 24 weekly installments. Depending on your repayment schedule and fee amount, your APR can range from 10.1% to 78.6%.

We’re not going to lie to you—Fundbox’s rates are higher than traditional banks and some other online lenders. However, there is a silver lining. It allows you to repay the financing early to save on fees, which significantly lowers your APR. Plus, Fundbox works directly with you rather than with your clients.

Pro Bullet You require quick funding.
Pro Bullet You have an extremely low credit score.
Con Bullet You need more than $100,000 in funding.
Con Bullet You don’t use a compatible accounting software, such as FreshBooks or QuickBooks.
Don't qualify for a business loan because of your credit score? Get a personal loan instead.

BlueVine: Most lenient requirements


BlueVine provides up to 90% of the invoice money up front. Once the invoice is paid by your client, you’ll get the rest of the funds, minus the fees.

To qualify for BlueVine’s invoice factoring, you must meet the following eligibility benchmarks:

  • 530 or higher credit score
  • 3 months in business
  • $120,000 in yearly income

While BlueVine’s qualification requirements are quite lenient, keep in mind that it’s not the cheapest invoice factoring available. With annual percentage rates of up to 68%, you should use its invoice factoring as a short-term solution. After you get approved, its system allows you to automatically sync invoices from its accounting software.

Determine if BlueVine is right for your business by considering the following factors:

Pro Bullet You meet its minimum qualifications.
Pro Bullet You have bad credit.
Pro Bullet You need cash now.
Con Bullet You can’t afford its pricey plans.
Con Bullet You have flakey customers.

Triumph Business Capital: Best for specific industries

Triumph Business Capital

As a publicly traded bank, Triumph Business Capital offers a variety of products, such as equipment financing, asset-based lending, and traditional term loans. Triumph works with both small businesses and mid-sized businesses.

As for its invoice factoring services, Triumph specializes in helping different industries, including oil and gas, government contractors, trucking, freight brokers, and staffing. In fact, it has dedicated teams for each industry, so rest assured, you won’t be just a number in the system.

Now for the downsides: Triumph Business Capital will make a hard credit pull on your personal credit score when you apply. Not to mention, you’ll be charged a $300 origination fee. If you don’t get approved, all of this will be for nothing. So make sure you meet its eligibility requirements before considering this invoice factoring option.

As for Triumph Business Capital's invoice factoring rates, it’s difficult to give you a precise price due to the lack of information on its website. However, we did find an invoice financing calculator that allows you to determine your rates, fees, and APR.

Before applying, consider speaking with a representative to learn more about Triumph's policies, factoring fees, and rates.

Determine if Triumph Business Capital is right for your business by considering the following factors:

Pro Bullet You need more specialized loans.
Pro Bullet You value personal relationships with your lender.
Con Bullet You don’t want a hard credit check.
Con Bullet You can’t afford its fees.

Invoice factoring FAQ

What's the difference between invoice factoring and invoice financing?

Invoice financing allows you to borrow money against unpaid invoices. Once you collect your money from your client, you must pay the lender back the amount loaned along with fees.

Invoice factoring involves selling the invoice to the lender for a percentage of the total. The lender will then deal with the client to collect the full amount.

While both invoice factoring and invoice financing can cover cash flow gaps, it’s important to understand the difference between the two before you decide which one will work for your business.

What are the pros and cons of invoice factoring?

Just like any other business loan, invoice factoring offers both pros and cons. Pros include immediate and ongoing cash flow, better approval chances, and healthier customer relationships. Cons include high factoring fees, lack of control of invoices, and reliance on customers.

Oh, and perhaps the most beneficial aspect of invoice factoring is the fact that you won’t have to pledge physical collateral to secure payment. So you’ll get to keep your beloved family boat.

Pro Bullet Immediate, ongoing cash flow
Pro Bullet Better approval chances
Pro Bullet Healthier customer relationships
Con Bullet High fees
Con Bullet No control over invoices

What's the difference between on-recourse invoice factoring and recourse invoice factoring?

If you have non-recourse invoice factoring, you’re in luck. In this scenario, the lender will assume the risk of non-payment. With recourse invoice factoring, by contrast, you (the business owner) agree to absorb most of the risk—which is typically a more affordable option.

Does invoice factoring require a credit check?

Another cool fact about invoice factoring is that your credit score won’t be a major deciding factor during the approval process. Instead, the factoring company conducts credit checks on your customers to ensure that they’ll pay in a timely manner.

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The takeaway

Imagine not having to worry about tracking down your customers and asking them to pay up. If it seems like waiting to get paid is what you end up doing most, it may be time to consider invoice factoring services.

Overall, we think Lendio is the best choice for most businesses that require invoice factoring. However, your own unique business needs and preferences as a small-business owner will influence which invoice factoring company will work for you.

Not sure invoice financing is right for your business? Check out other options for fast and easy business loans.


At, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

1. Entrepreneur, “U.S. Small Businesses Owed $825 Billion in Unpaid Invoices (Infographic).” Accessed December 8, 2020.

Sarah Ryther Francom
Written by
Sarah Ryther Francom
Sarah is’s senior content editor. She has more than 15 years of experience writing, editing, and managing business-focused content. As the former editor-in-chief of Utah Business magazine, Sarah oversaw the state’s premier business publication, developed several custom publications, and managed all business-to-business content. She also co-authored a business book with FJ Management CEO Crystal Maggelet. Sarah is passionate about helping small-business owners reach sustained success.
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