Best Invoice Factoring Companies (2026)

Compare top invoice factoring companies. Turn unpaid invoices into immediate working capital.

Written by Harvey Brooks, Senior Financial Editor

TL;DR Quick summary

Rapid Finance and ROK Financial offer invoice factoring alongside other products for flexibility. Celtic Bank provides factoring as part of their asset-based lending suite ($350K-$5M). Your credit score matters less than your customers' — factoring is based on invoice quality, not your personal credit.

Key Takeaways

Invoice factoring is a sale of receivables, not a loan — no debt on your balance sheet
Advance rates are typically 80-90% of invoice value
Your customers' creditworthiness matters more than yours
Best for B2B businesses with 30-90 day payment terms
Factoring fees typically range from 1-5% of invoice value

Invoice factoring lets you sell unpaid invoices to a factoring company for immediate cash — typically 80-90% of the invoice value upfront, with the remainder (minus fees) paid when your customer pays. It's not a loan — it's selling a receivable. We compared the top factoring providers for 2026.

Rapid Finance

3.1/5

From Free/mo BBB: A+ Free Consultation

Rapid Finance is a Bethesda, MD-based alternative lender offering term loans ($5K-$1M), merchant cash advances, business lines of credit, SBA loans, bridge loans, invoice factoring, and asset-based lending with fast funding and flexible qualification criteria.

$3B+ funded — established track record in alternative lending

Wide product range covering term loans, MCA, LOC, SBA, factoring, and more

Flexible qualification — considers overall business performance, not just credit score

Read Full Review Visit Rapid Finance

ROK Financial

3.2/5

From Free/mo BBB: A Free Consultation

ROK Financial (ROKFI LLC) is a business loan broker based in Great River, NY that connects borrowers with lending partners across 11 financing products including term loans, SBA loans, equipment financing, CRE, and MCA, with a minimum credit score of 500.

11 financing products under one roof — term loans, SBA, LOC, equipment, A/R, PO, MCA, CRE, franchise, startup, and middle market

500 minimum credit score is one of the lowest entry barriers in business lending

Startup funding available with just 6 months in business and $120K annual revenue

Read Full Review Visit ROK Financial

Celtic Bank

3.7/5

From Free/mo BBB: Free Consultation

Celtic Bank is a Utah-chartered industrial bank and top-10 SBA lender offering SBA 7(a), SBA 504, USDA B&I, equipment, construction, renewable energy, and conventional business loans from $25K to $10M across 60+ industries.

Top 10 SBA lender every year since 2013 — proven consistency

14 distinct lending products covering $25K to $10M

SBA rates as low as Prime + 2.75%

Read Full Review Visit Celtic Bank

Biz2Credit

3.7/5

From Free/mo BBB: NR Free Consultation

Biz2Credit is a New York-based fintech platform that has facilitated over $8 billion in funding to 200,000+ businesses, offering term loans, revenue-based financing, business lines of credit, and commercial real estate loans with 60-second prequalification.

$8 billion funded across 200,000+ businesses since 2007 — one of the largest online business lending track records

Four products covering $25K to $6M: term loans, revenue-based financing, LOC, and commercial real estate

60-second prequalification with soft credit pull — no impact on personal credit score

Read Full Review Visit Biz2Credit

Frequently Asked Questions

How does invoice factoring work?

You sell unpaid invoices to a factoring company. They advance 80-90% of the invoice value immediately. When your customer pays the invoice, the factor remits the remaining balance minus their fee (typically 1-5% of invoice value).

Is invoice factoring a loan?

No. Factoring is a sale of receivables, not a loan. The factoring company buys your invoices at a discount. This means no debt appears on your balance sheet, which can be advantageous for businesses that want to avoid additional liabilities.

What industries use invoice factoring?

Factoring is common in B2B industries with long payment cycles: trucking and freight, staffing agencies, manufacturing, construction, government contractors, and professional services. Any business that invoices other businesses (not consumers) can potentially use factoring.

What credit score do I need for invoice factoring?

Your credit score matters less in factoring — the factor cares more about your customers' creditworthiness since they're the ones paying the invoices. This makes factoring accessible to business owners with poor personal credit.

Harvey Brooks

Senior Financial Editor

Harvey Brooks is a consumer finance writer specializing in credit repair, personal lending, and debt management. With over a decade covering the industry, he makes financial literacy accessible to everyday Americans. About our editorial team.

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