FundThrough is Investopedia’s choice for the best overall factoring company because of its high maximum advance rate, low factor fee, and vast industry specialization. Triumph Business Capital is a good choice for large advances ,and Riviera Finance offers convenient tools for managing your account and transferring invoices.
Factor financing allows businesses to get cash by selling their invoices to a third party, known as a factor. This can improve cash flow. The business assigns invoices to the factoring company, which advances the business a percentage of the total amount (usually 70%–95%) and collects what’s owed. When the client pays, the factor takes its fee and forwards the balance to the business.
The best factoring companies provide large advances, charge low factor fees, and feature convenient ways to monitor your account. Investopedia researched 10 factoring companies and collected hundreds of details from seven to create this list of the five best places to get factor financing.
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