Invoice financing (factoring) lets B2B companies unlock cash tied up in unpaid invoices — typically within 1–5 days. We compared advance rates, funding speed, and fee structures across top providers. Our pick for overall best is FundThrough (100% advance rate, fast funding), with Riviera Finance for startups and RTS for trucking as strong alternatives. We also cover integrated tools like Square Invoices and lower-cost alternatives like SBA loans.
If you run a B2B business, you know the pain: you send a $50,000 invoice, and then you wait 30, 60, even 90 days to get paid. Meanwhile, payroll, rent, and supplies don't wait.
Invoice financing (also called factoring) is a tool that turns those unpaid invoices into cash — fast. A factoring company advances you most of the invoice value (typically 90–100%), then collects payment from your customer directly. It's not a loan, so approval depends on your customers' credit, not yours.1
The trade-off? Speed and accessibility come at a cost. Factoring fees are higher than traditional loans, and you're sharing a slice of your receivables. But for businesses that need cash flow now, it's often the best option available.
Here are the best invoice financing options for small businesses in 2025.
We evaluated providers on four criteria that matter most for small businesses:
FundThrough stands out for its combination of a 100% advance rate and fast funding (1–5 days).1 Most factoring companies hold back 10–20% as a reserve; FundThrough advances the full amount, which is rare. Their fee structure is transparent, and they specialize in small to mid-sized B2B businesses.
Best for: B2B companies that need maximum cash upfront and fast turnaround.
Trade-off: You pay for that 100% advance — fees are competitive but not the lowest on the market.
Riviera Finance has been in the factoring space for decades and is known for working with younger businesses that might not qualify elsewhere. They offer advance rates up to 90% and funding within 24–48 hours for many clients.1 Their experience with early-stage companies means they understand the volatility that comes with growth.
Best for: Startups and newer businesses that need fast cash but don't have years of receivables history.
Trade-off: Lower advance rate (90%) means you leave some cash on the table until the invoice is paid.
RTS Financial specializes in freight factoring, a niche where invoice financing is practically essential. Trucking companies often wait 30–60 days for brokers to pay; RTS advances up to 100% within 24 hours.1 They integrate with load boards and offer fuel advances, making them a full-service partner for owner-operators and fleets.
Best for: Trucking companies, freight brokers, and logistics businesses.
Trade-off: Specialized focus means they're not the right fit for general B2B service businesses.
Square Invoices isn't a factoring company — it's an invoicing and payment platform that helps you get paid faster, which can reduce the need for factoring altogether. You create and send invoices, and customers can pay instantly by card or bank transfer. Funds typically settle in 1–2 business days.1
Best for: Small businesses that want to streamline billing and reduce payment delays without taking on factoring fees.
Trade-off: You're relying on customers paying promptly — no advance on unpaid invoices.
For businesses that qualify, an SBA 504 loan offers lower interest rates and longer terms than factoring.3 These government-backed loans are designed for major asset purchases (real estate, equipment) and can free up working capital indirectly. They're not a direct replacement for factoring, but if your cash flow crunch is tied to expansion, this is worth exploring.
Best for: Established businesses that need long-term financing for growth, not short-term invoice gaps.
Trade-off: Lengthy application process, strict eligibility requirements, and funds can't be used for working capital directly.
| Feature | FundThrough | Riviera Finance | RTS Financial | Square Invoices | SBA 504 Loan |
|---|---|---|---|---|---|
| Advance rate | 100% | Up to 90% | Up to 100% | N/A (payment) | N/A (loan) |
| Funding speed | 1–5 days | 24–48 hours | 24 hours | 1–2 days | 30–90 days |
| Fee structure | Transparent % | Monthly % | Weekly % | Per-transaction | Low APR |
Invoice financing is expensive compared to traditional loans. Factoring fees typically range from 1–5% of the invoice value per month, which can translate to an APR of 20–60% or more depending on how long your customers take to pay.2
Before signing up, ask:
Invoice financing is a tool, not a trap. For B2B businesses with reliable customers and slow-paying invoices, it can be the difference between making payroll and missing it. FundThrough is our top pick for its 100% advance rate and straightforward terms. But if you're a startup, a trucking company, or just want better invoicing software, one of the alternatives above will serve you better.
Disclosure: We may earn a commission if you purchase through our links, at no extra cost to you. Our recommendations are based on independent research and analysis.
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