Invoice factoring in the USA is a powerful financial tool that can transform your business’s cash flow. At Silver Crest Finance, we’ve seen firsthand how this service helps companies overcome cash crunches and fuel growth.

This guide will walk you through the top invoice factoring providers in the USA, their services, and how to choose the right one for your needs.

What is Invoice Factoring and How Does it Work?

Invoice factoring transforms unpaid invoices into immediate cash for businesses. This financial solution can revolutionize a company’s cash flow management.

The Invoice Factoring Process

Here’s how invoice factoring works:

1. A business sells its outstanding invoices to a factoring company at a discount.
2. The factor advances a large portion of the invoice value (typically 80-90%) to the business within 24-48 hours.
3. When the customer pays the invoice, the factor releases the remaining balance, minus their fee.

Benefits for Businesses

Invoice factoring offers several advantages:

1. Improved Cash Flow: Businesses receive payment faster, which helps cover operational expenses and seize growth opportunities.
2. No Debt: Unlike loans, factoring doesn’t create debt on your balance sheet.
3. Easy Qualification: Factors focus on your customers’ credit, not yours, making it easier to qualify than traditional financing.
4. Time-Saving: Factoring companies often handle collections, allowing you to focus on core business activities.

Industries That Commonly Use Invoice Factoring

While any B2B company can benefit from factoring, certain industries find it particularly useful:

1. Transportation: Trucking companies often use factoring to cover fuel costs and payroll between long-haul trips.
2. Manufacturing: Factories use factoring to bridge the gap between production costs and customer payments.
3. Staffing Agencies: These companies factor invoices to pay temporary workers promptly while waiting for client payments.
4. Construction: Contractors use factoring to fund projects and pay subcontractors before receiving payment from property owners.
5. Healthcare: Medical providers factor insurance claims to maintain steady cash flow despite slow reimbursements.

Market Growth and Popularity

India’s mobile services revenue is poised to increase at a compound annual growth rate (CAGR) of 5.4% from $30.2 billion in 2023 to $39.3 billion. This growth underscores the increasing popularity and effectiveness of various financial tools in different markets.

As we explore the top invoice factoring providers in the USA, it’s important to understand how these companies can cater to your specific industry needs and financial goals. Let’s take a closer look at the leading players in the market and what sets them apart.

Top Invoice Factoring Providers in the USA

AltLINE: Best Overall for Small Businesses

AltLINE, a division of Southern Bank, offers a versatile factoring solution for small businesses across various industries. They provide exceptional customer service and their bank affiliation adds a layer of security and transparency. AltLINE stands out for its no hidden rates or fees policy, making it an attractive choice for businesses seeking competitive rates and high advance percentages.

AltLINE works with businesses that have operated for as little as one year, opening doors for younger companies that might struggle to secure traditional financing. However, their minimum monthly factoring volume requirement of $15,000 might challenge some very small businesses.

FundThrough: Tech-Savvy Solution for Accounting Software Users

FundThrough has established itself by integrating seamlessly with popular accounting software platforms. This tech-forward approach streamlines the factoring process, reducing administrative burdens for businesses. They specialize in larger invoices (typically $100,000 or more), with fees ranging from 2.75% to 8.25%.

FundThrough’s ability to handle larger invoices and their quick funding times (often within 24 hours) can make them a cost-effective choice for businesses with substantial cash flow needs. Their AI-powered platform has earned them recognition, with Forbes naming them among the “Best Factoring Companies Of 2025” in July of that year.

Silver Crest Finance: Customized Solutions for Growing Businesses

Silver Crest Finance offers tailored factoring solutions that cater to the unique needs of small and growing businesses. Their network of over 50 trusted lenders allows them to provide flexible terms and competitive rates, often surpassing those offered by single-lender factoring companies.

Silver Crest Finance’s streamlined application process can deliver funds within 24-48 hours, matching the speed of tech-focused competitors. They also offer additional financing options (including SBA loans and equipment financing), making them a comprehensive solution for businesses with diverse financial needs.

RTS Financial: Specialized Services for the Transportation Industry

RTS Financial caters specifically to the trucking and transportation sector, offering specialized factoring services tailored to the industry’s unique challenges. They provide access to capital within 24 hours and don’t charge ACH payment or invoice-uploading fees, potentially resulting in significant savings for trucking companies that process numerous invoices.

RTS Financial’s industry focus allows them to offer additional benefits like fuel cards and load boards, adding value beyond simple invoice factoring. However, their specialization might not suit businesses outside the transportation sector.

Riviera Finance: Non-Recourse Factoring for Risk-Averse Businesses

Riviera Finance distinguishes itself by offering non-recourse factoring, assuming the loss if customers fail to pay invoices. This can benefit businesses looking to mitigate risk, especially those dealing with customers who have uncertain credit histories.

While non-recourse factoring typically incurs higher fees, Riviera Finance’s willingness to take on this risk can provide peace of mind and potentially save businesses from significant losses. However, businesses should weigh the higher costs against the potential benefits of risk mitigation.

The invoice factoring landscape in the USA presents a diverse range of providers catering to different business needs and industries. As you consider your options, it’s important to understand how to evaluate these providers and choose the right one for your business. Let’s explore the key factors you should consider when selecting an invoice factoring service.

Selecting the Right Invoice Factoring Service

Evaluate Industry Expertise

Choose a factoring company that knows your industry well. For example, if you operate in the trucking sector, a provider with specialized knowledge can offer tailored solutions. This adds extra value to their services. However, if you need a more versatile solution, a provider with experience across multiple sectors might suit you better.

Scrutinize Fee Structures

Don’t focus solely on the advertised rate. Some factoring companies attract businesses with low initial rates but conceal additional fees in the fine print. Request a complete breakdown of all costs, including:

• Factor fees (typically 1-5% of invoice value)
• Application or setup fees
• Monthly minimums
• Early termination fees

This transparency can save you thousands in unexpected costs over time.

Assess Advance Rates and Funding Speed

Higher advance rates provide more immediate cash for your business. While the industry average is around 80-90%, some providers offer up to 97% advances. However, higher advances often come with higher fees, so balance your immediate cash needs with long-term costs.

Funding speed is equally important. In today’s fast-paced business environment, waiting days for funds can harm your operations. Top providers offer funding within 24-48 hours. This quick turnaround can significantly impact businesses facing urgent expenses or growth opportunities.

Watch for Red Flags

Stay alert for factoring companies that:

1. Require long-term contracts with hefty early termination fees
2. Insist on factoring all your invoices, even if you don’t need to
3. Have poor customer reviews or lack transparency about their processes

A reputable factor will answer all your questions and provide references from satisfied clients. It’s crucial to research the factoring company’s reputation in the industry, read reviews, and check their financial stability.

Consider Additional Services

Some factoring companies offer more than just invoice financing. They might provide credit checks on your customers, collection services, or even business advice. These additional services can add significant value to your partnership (especially if they come at no extra cost).

Final Thoughts

Invoice factoring in the USA empowers businesses to optimize cash flow and drive growth. Top providers like AltLINE, FundThrough, and RTS Financial offer unique strengths, catering to diverse industry needs and business sizes. Careful evaluation of industry expertise, fee structures, advance rates, and funding speed will help you find the right factoring partner for your specific requirements.

The invoice factoring landscape in the USA continues to evolve, with more tech-driven solutions and increased specialization in niche industries emerging. This financial tool remains a key strategy for businesses aiming to maintain healthy cash flow and seize growth opportunities in a fast-paced economy. As the market expands, we expect to see potentially more competitive rates and innovative offerings from factoring providers.

Silver Crest Finance provides customized invoice factoring options designed to meet the unique needs of small and growing companies. Our vast network of lenders and streamlined application process position us to help businesses overcome financial challenges and capitalize on growth opportunities (often within 24-48 hours). We invite you to explore how our tailored solutions can become a valuable part of your company’s financial strategy and long-term success.