I’m sure you are aware that most people do not like to factoring software program. For those who does, I think these software can improve their business in many ways. The use of invoice factoring software is easy for the people who does not like the traditional way of dealing with the financial institutions and other banks for borrowing money. There are a lot of companies that were found using this kind of software and claim that their success rate is more than hundred percent than before when they were still using the traditional method.
One of the best things about working with a factoring software company is that you get to learn about different ways to grow your business. When I first started using invoice factoring software, I was amazed at all of the different solutions available to suit just about any business. Learning more about each is one of my favorite tasks at work. I would like to share some of the great features that come with invoice factoring company software.
altLINE
We chose altLINE as our best factoring company for large invoices because, as a commercial financing division of The Southern Bank, it is a direct financier and transparent to the business customer. As a result, it doesn’t have the middleman fees that are typically a percentage of the invoice, which saves more money on a large invoice. Pros
- Provides a wide range of factoring options
- Discount rates as low as 0.50%
- Supported by a reliable banking institution
Cons
- Funds may not be instant
The company has provided more than $800 million in funded invoices since 1936.23 Unlike most factoring companies, altLINE is backed by an established, reputable bank, The Southern Bank Company. altLINE is our preferred choice for large invoice factoring because, as a direct lending company, altLINE doesn’t carry additional borrowing costs that can become expensive on large invoices. While we hear its upper limit on invoice value may be a bit lower than a few of its competitors, we still selected it as best for large invoices because it keeps its fees transparent and charges fewer of them, which lowers the cost for the business customer with a large invoice.
Their factoring rate can be as low as 0.50%. Other fees that may apply are for origination, wire transfers, and to speed up funding.
The company does not use credit score as a primary consideration. However, the specific rate will be determined partly by the customer’s credit and capacity to pay their invoices.
To work with the company, altLINE you may need to meet certain requirements around the amount of annual sales you have and the amount of invoices you need to factor.
You can request a quote on altLINE’s website. After completing the request, an altLINE specialist will work with you to determine if factoring is the right service.
The main drawback altLINE has compared to its competitors is the possibly slower funding timeline. It may take a couple of days to get your money, however, your experience may be more or less. The application process, however, is fast and does not require an application fee.
Minimum and maximum factoring amounts may apply.
Triumph Business Capital
We chose Triumph Business Capital as our best factoring company for invoice management because of its online MyTriumph web portal. This portal provides a full array of client reporting and allows businesses to monitor the status of their invoice payments. Pros
- Ability to run credit checks and see the status of transactions in their portal
- High advance rates, up to 100%
- Fuel discount program
Cons
- Not as much fee transparency as their competitors
Headquartered near Dallas, Texas, Triumph Business Capital has offered invoice factoring since 2004.4 The company launched MyTriumph.com which is an industry-leading web portal built for customers to manage their funding. This portal is why we awarded Triumph as the best factoring company for invoice management. Customers can stay up to date on their account from anywhere with real-time information by logging into their MyTriumph dashboard to view requests, payments, invoice searches, and to get immediate support from their customer service team.
Triumph offers an advance rate of up to 100%. Things such as age of your business, yearly revenue, invoice examples, and more may be examined to determine your eligibility to be a Triumph customer. Business owners must also have business-to-business or business-to-government sales invoices to qualify.
Fees vary in size and form. In some cases, there are flat fees, and in others, there are variable rates. It depends on what you negotiate with Triumph. Triumph Business Capital works with the business to fit their budget and terms requirements. Once inside the portal as a client, you’ll have ready access to your invoice management fee structure.
Interested businesses may apply by phone or through a form on the company’s website. Just like the other factoring companies, a specialist will be in contact after submission. Triumph says they provide same day funding, but keep in mind, it could be longer than that.
The MyTriumph portal is robust and easy to use as you can see where your requests stand in the funding approval process. There is, however, no direct integration to sync your bookkeeping software, but you can download and upload files through an import and export process.
Triumph determines its invoice funding amount on a case-by-case basis. Triumph then recoups the money by collecting on your invoices.
RTS Financial
We chose RTS Financial as our best invoice factoring company for trucking because the company specializes in trucking and the freight industry. The company provides credit reports, fuel card programs, and trucking-related software with a mobile app. Pros
- Offers mobile apps and web browser apps for better integration with their platform
- No hidden fees including ACH and invoice uploading
- Gives fuel card discounts
- Funds within 24 hours
- Up to 97% of invoice value paid upfront
Cons
- You don’t find out about the rates they offer until after you’ve submitted a full application
- Must apply via contact form and then phone call
- Has complaints about difficulties in getting out of contract and cancellation fees
RTS Financial, a factoring company founded in 1995, offers working capital solutions to businesses across multiple industries, but with a clear focus on the trucking industry.5 RTS Financial is our best choice for trucking industry invoice factoring because it offers apps for both web browsers and mobile. It also serves truck driving companies with same-day funding, a discount fuel card program, a solution for trucking companies operating in Mexico, credit reports for freight brokers, and comprehensive fleet management software.
The company does not disclose its pricing and rates until after you’ve applied. RTS does not charge hidden fees such as ACH fees, invoice-upload fees, or minimum-volume fees.
For the invoice factoring service, the company will advance up to 97% of the total amount within 24 hours of taking your application.
Requirements for RTS will differ by industry (trucking and non-trucking) and if it is domestic or international among other possible factors.
To apply with RTS Financial, you need to submit the contact form online. An agent will then call you and take your application over the phone. In the application conversation, you’ll submit personal and business information, truck details, company ownership, and more. After the submission review, a representative from RTS Financial will contact you again to discuss your qualification and options. Funding can be as quick as 24 hours once approved.
The company provides a mobile and web application called ProTransport to help clients manage their factoring account, view fuel discounts, and generate credit reports. It integrates with QuickBooks, but can also work with other programs by exporting data from your bookkeeping software and importing it into ProTransport.
Funding minimum and maximum amounts are determined on a case-by-case basis depending on the company’s full understanding of your financial picture. For Fuel Card allowances, RTS permits up to $2,500 per truck, per week. As customer invoices are paid, the remaining payments are made to the trucking business.
BlueVine
- Rates start at .25% per week
- Factoring lines up to $5 million
- No long-term contracts
- Apply quickly online
BlueVine is one of the most popular and reputable invoice factoring companies out there. That’s because of their high factoring lines, low rates, and commitment to speedy funding.
BlueVine offers factoring lines of up to $5 million. Factoring rates start at just 0.25% per week.
The approval process is fast. For businesses that need cash right away, you can get approved in just 24 hours.
The funding process is easy and flexible. You’ll have the opportunity to get higher credit limits based on the strength of your customers.
BlueVine’s fees are transparent, so you always know exactly how much the factoring will cost you. Instead of collecting recurring payments, they charge a weekly fee that’s due when the invoice gets paid.
You’ll have full control over what invoices get sold—only fund what you need without committing to a long-term contract.
Here’s how the process works:
It takes fewer than ten minutes to apply online. You provide a few basic details about your business, then the application approval process takes up to 24 hours.
Once approved, simply submit any unpaid invoices by syncing your accounting software or uploading them to your BlueVine dashboard.
BlueVine pays 85%-90% of the cash instantly. You’ll get the rest of the money, less the BlueVine fee, once the invoice gets paid.
These are the minimum qualifications to get started with invoice factoring from BlueVine:
- Must be in business for at least 3+ months
- Your business generates $10,000 in monthly revenue
- You have a B2B company (invoices from traditional consumers aren’t eligible)
- Personal FICO score of 530+
You’ll also need to provide BlueVine some basic details about your invoices and show three months of recent bank statements. Get started now at BlueVine.
eCapital Commercial Finance
- Non-recourse invoice factoring
- Purchase order financing
- In business 25+ years
- Great option for startups
eCapital Commercial Finance is a non-recourse invoice factoring company. That means if your customers fail to pay back your invoice, you’re not completely on the hook to pay back the factoring company for it.
This is the most ideal situation because you can get funded without assuming the liability for unpaid invoices.
It’s a great option for startups, entrepreneurs, and businesses with tax issues. eCapital Commercial Finance typically works with lots of government contractors. Your personal credit won’t impact any approvals. Since eCapital Commercial Finance assumes the risk, they make decisions based on the credit of your clients.
To qualify for invoice factoring with eCapital Commercial Finance, you’ll need a minimum of $30,000 in monthly sales. This is a bit higher compared to other options that we’ve reviewed.
In addition to invoice factoring, eCapital Commercial Finance Financial also offers purchase order financing and working capital for government contracting.
Payplant
For an invoice factoring company with no contracts, no minimums, and no hidden fees, you might look into Payplant.
Payplant is an online lender that offers on-demand invoice factoring through their “Pay Me Now” program. Through this program, you can choose which invoices to finance (generally up to $1 million) and Payplant will advance you up to 90% of the invoice amount.
Like altLINE, Payplant is truly a factoring company, and therefore, they’ll handle payments from your customers. When your customer pay, they’ll transfer the remaining amount, minus their fees. Payplant’s factor fees start at 1.2% per month, with a minimum duration of 30 days.
You can apply for invoice factoring with Payplant online and a representative will follow up by phone to discuss your application. Payplant can fund you in as little as 72 hours.
Although Payplant doesn’t list specific requirements on their website, they do state that small private companies or startups may face higher rates, as it’s simpler to evaluate the creditworthiness of larger companies.
This being said, however, with no monthly minimums and no long-term contracts, Payplant can be a great option for fast accounts receivable financing. Plus, you can use the Pay Me Now calculator on the Payplant website to estimate your rates, as well as submit your basic business information to receive an instant quote.
Conclusion:
Ready to find a factoring company, but not sure where to look? Factoring software is an option that can help your business cut costs and improve liquidity. However, there are several factors to consider before investing in any factoring software and some companies may be more appropriate than others depending on your current needs.