Our picks in detail
aLBest overall
altLINE · Invoice factoring
4.4/50.5% to 3% fee
Max amount$5M
Min creditN/A
Time in businessNone
Funding speed24 to 48 hours after setup
altLINE is a bank-owned factoring company, which matters: it funds from its own balance sheet rather than reselling your receivables. Factoring turns slow-paying B2B invoices into cash within days, and because the decision rests on your customers' credit, your own score barely matters.
Pros
- Your customers' credit matters more than yours
- No minimum time in business
- Bank-owned, so pricing is competitive for factoring
- Scales with your sales
Cons
- Only works for B2B or B2G businesses that invoice
- Your customers will know you factor
- Fees compound the longer an invoice is outstanding
- Volume minimums apply
FbBest for small invoice volumesPartner
Fundbox · Business line of credit
4.6/54.66% to 8.99% fee
Max amount$150K
Min credit600
Time in business3 mo
Funding speedNext business day
Fundbox has one of the lowest barriers to entry of any legitimate lender: three months in business, $30,000 in annual revenue and a 600 credit score. That makes it a realistic first line of credit for a young company, as long as you treat it as short-term working capital and not cheap money.
Pros
- Accepts businesses as young as 3 months
- Low revenue requirement
- Next-day funding on draws
- No prepayment penalty; fees stop when you repay early
Cons
- Short 12- or 24-week repayment plans
- Weekly payments
- Fees are higher than bank rates when annualized
- Maximum line is modest at $150,000
BvBest alternative: line of creditPartner
Bluevine · Business line of credit
4.6/5From 7.8% simple interest
Max amount$250K
Min credit625
Time in business12 mo
Funding speedAs fast as 24 hours
Bluevine is one of the quickest ways for an established business to open a revolving line it can draw on repeatedly. Approval is often same-day and funds can land in 24 hours. The trade-off is a one-year time-in-business floor and weekly payments on the shorter term.
Pros
- Decisions in minutes, funding in as little as 24 hours
- Revolving: draw, repay, and draw again without reapplying
- No origination, maintenance or prepayment fees
- Monthly payment option on the 12-month term
Cons
- Requires 12 months in business and $10,000 a month in revenue
- Not available in Nevada, North Dakota or South Dakota
- Weekly payments on the 6-month term
- Personal guarantee required
How we chose
We weighed advance rates, fee structure per 30 days, whether factoring is recourse or non-recourse, contract length and minimums, and how the factor treats your customers.
Market note, November 2026. Longer payment terms from large buyers are pushing more small suppliers into factoring. Bank-owned factors and fintech invoice lines have brought pricing down from the historic 3% to 5% per month to a more reasonable range for strong customer credit.
How to get one
- Step 1
List your customers and their payment history
The factor underwrites them. Large, slow, reliable payers are ideal.
- Step 2
Ask whether the arrangement is notification or non-notification
Most factoring tells your customer to pay the factor. If that matters to you, invoice financing may fit better.
- Step 3
Read the contract for minimums and term
Monthly minimums and 12-month commitments are common. Negotiate both.
How to compare offers
Fee per 30 days
Fees accrue in 30-day blocks (sometimes 10-day). A 1% fee on an invoice paid in 60 days costs 2%.
Frequently asked questions
How much does invoice factoring cost?
Typically 0.5% to 3% of the invoice value per 30 days outstanding, with 80% to 90% advanced upfront and the remainder, minus fees, paid when your customer pays.
Does factoring require good credit?
Your customers' credit matters most. Your own score has little bearing, which is why factoring works for new and credit-challenged businesses.