Running a business can be challenging, especially when cash flow is tight due to delayed customer payments. Invoice factoring is one of the fastest ways to convert unpaid invoices into immediate cash. Instead of waiting 30, 60, or 90 days for payments, you can sell your invoices to a factoring company and receive cash within 24 to 48 hours.
But with so many factoring companies available, how do you choose the right one for your business? The key is to find a local invoice factoring company that understands your industry, offers competitive rates, and provides fast, reliable funding.
This guide highlights the top 7 local invoice factoring companies near you, explains what to look for in a factoring provider, and provides tips on how to choose the best option for your business.
What is Invoice Factoring?
Invoice factoring is a financing method that allows businesses to access cash by selling their unpaid invoices to a factoring company. Instead of waiting for customer payments, you receive an advance (usually 70% to 95% of the invoice value) upfront. The factoring company then collects payment from your customer and returns the remaining balance, minus their fees.
This process provides quick cash flow, helping businesses cover payroll, inventory, and operating expenses without taking on debt.
How Invoice Factoring Works
- Submit Unpaid Invoices: You send your unpaid invoices to a factoring company.
- Receive Cash Advance: The factoring company advances a percentage of the invoice total (typically 70% to 95%).
- Client Payment: Your customer pays the full invoice directly to the factoring company.
- Receive the Balance: The factoring company deducts its fee and sends you the remainder of the payment.
Top 7 Local Invoice Factoring Companies Near You
Here are some of the most reputable invoice factoring companies that serve local businesses in cities and states across the U.S. These companies are known for their flexibility, fast funding, and strong customer support.
1. BlueVine
Best For: Fast Funding and Online Convenience
BlueVine is one of the most popular online factoring companies. While not a “local” company in the traditional sense, it serves businesses nationwide. BlueVine is known for its fast application process, same-day approvals, and flexible financing.
- Advance Rate: Up to 90%
- Funding Time: 24 to 48 hours
- Fee Structure: 0.25% to 1.5% per week
- Minimum Requirements: 3 months in business, $120,000 in annual revenue
Why Choose BlueVine?
If you want fast funding with a fully online application process, BlueVine is a great option. Its technology-first approach means you can get cash within hours, no matter where you’re located.
2. TCI Business Capital
Best For: Staffing, Trucking, and Construction Businesses
TCI Business Capital specializes in industries like trucking, staffing, construction, and oil & gas. They offer industry-specific solutions tailored to the needs of small and mid-sized businesses.
- Advance Rate: 90% to 95%
- Funding Time: 24 hours
- Fee Structure: Custom fees based on invoice volume and industry
- Minimum Requirements: Open to startups and small businesses with no minimum revenue requirement
Why Choose TCI Business Capital?
If you operate in trucking, staffing, or construction, TCI Business Capital understands your cash flow needs and offers customized services. They also work with newer businesses and startups, making them a good choice if you’re just starting out.
3. RTS Financial
Best For: Trucking and Freight Companies
RTS Financial is a top choice for trucking companies and freight brokers. They offer flexible factoring services, as well as fuel card programs that help trucking companies save on fuel costs.
- Advance Rate: 95%
- Funding Time: Same day
- Fee Structure: Custom fees, typically 2% to 5%
- Minimum Requirements: Flexible requirements for trucking and freight businesses
Why Choose RTS Financial?
RTS Financial is ideal for trucking and freight companies that need fast payments on their invoices. Their fuel card program helps businesses save on operating costs, making them a preferred option for logistics companies.
4. altLINE (The Southern Bank Company)
Best For: Low Fees and Transparent Pricing
altLINE is a bank-backed factoring company, offering more transparency and lower fees than traditional factoring firms. Unlike some other factoring companies, altLINE offers clear pricing and doesn’t charge hidden fees.
- Advance Rate: 85% to 90%
- Funding Time: 24 to 48 hours
- Fee Structure: 0.50% to 3% of the invoice amount
- Minimum Requirements: At least $15,000 in monthly invoicing
Why Choose altLINE?
If you value transparency and want a provider with clear pricing, altLINE is a great option. They have competitive fees and are backed by The Southern Bank Company, so you get bank-level trust and security.
5. Factor Finders
Best For: Businesses with Low Credit or High Risk
Factor Finders connects businesses to factoring companies that work with low-credit or high-risk clients. Instead of being a direct provider, Factor Finders helps match you with a factoring service that fits your specific needs.
- Advance Rate: Varies by factoring partner
- Funding Time: Varies, but often 24 to 48 hours
- Fee Structure: Varies by factoring partner
- Minimum Requirements: Flexible — works with startups and low-credit businesses
Why Choose Factor Finders?
If you’ve been denied by other factoring companies, Factor Finders can help you find a provider willing to work with your financial situation. They specialize in finding solutions for high-risk businesses.
6. Fundbox
Best For: Small Businesses and Freelancers
Fundbox offers invoice financing rather than traditional factoring. With invoice financing, you maintain control of client collections, and the provider advances cash on your invoices. Fundbox uses a simple, tech-driven application process with fast approvals.
- Advance Rate: 100% (You get the full invoice value upfront)
- Funding Time: Same day
- Fee Structure: Flat fee of 4.66% to 8.99% for 12 or 24 weeks
- Minimum Requirements: 6 months in business, $100,000 annual revenue
Why Choose Fundbox?
If you want full control of your collections and prefer a simple, fast process, Fundbox is a great option. Since they offer invoice financing instead of factoring, you remain in charge of client payments.
7. eCapital
Best For: Companies Seeking Customized Funding Solutions
eCapital offers tailored invoice factoring solutions for small to large businesses. They work with staffing, trucking, manufacturing, and other industries. eCapital is known for its flexibility and ability to create custom funding plans for its clients.
- Advance Rate: 90% to 95%
- Funding Time: Same day to 48 hours
- Fee Structure: Varies by industry and business size
- Minimum Requirements: Flexible, works with startups and small businesses
Why Choose eCapital?
If you want a factoring company that can create a custom solution for your industry, eCapital is a solid choice. They work with a range of industries and provide fast access to cash.
How to Choose the Right Invoice Factoring Company
Here’s what to consider when selecting an invoice factoring company:
- Advance Rate: Look for companies that offer 90% to 95% advances on invoices.
- Fees and Pricing: Look for clear, transparent fees and avoid companies with hidden costs.
- Industry Expertise: Choose a factoring company with experience in your industry.
- Speed of Funding: Some companies offer same-day funding, while others may take 48 hours or more.
- Customer Support: Choose a provider with strong customer service and dedicated account managers.
Frequently Asked Questions
What industries use invoice factoring the most?
Industries like trucking, staffing, construction, and manufacturing commonly use invoice factoring.
How fast can I get cash from a factoring company?
Most companies provide funding within 24 to 48 hours after invoice submission.
Are there fees for early repayment?
Unlike loans, invoice factoring fees are calculated upfront, so there are no prepayment penalties.
Can startups qualify for invoice factoring?
Yes, startups can qualify as long as they have creditworthy clients and unpaid invoices.
Tags: invoice factoring, factoring companies, cash flow solutions, small business financing, invoice financing, working capital, accounts receivable financing, local factoring companies, business loans
