Best Invoice Financing Companies of 2026
Unlock Cash From Unpaid Invoices Fast

We compared 50+ invoice financing providers across advance rates, factor fees, approval requirements, and funding timelines. Whether you need to bridge a 30-day gap or free up six figures tied in outstanding invoices, find your best match in under 2 minutes with no credit impact.

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Home› Best Invoice Financing Companies 2026

Best Invoice Financing Companies of 2026
6 Expert Picks Compared

6 Verified Lenders · Invoice Financing
Updated Jun 2026
Advertiser Disclosure: Rankings reflect our editorial assessment based on rates, approval criteria, funding speed, and verified customer reviews, not paid placement. APRs and loan details vary by creditworthiness and lender. Always review full terms before applying.
Editor's Pick
4.8 / 5
Visit Fundivi
Fundivi
Direct Lender
Best for fast approval with no credit score requirement
AI-powered underwriting delivers an approval decision in as little as 3 hours, fully online with zero paperwork, available across all 50 states
Rate match guarantee: find a lower rate anywhere else and Fundivi will match or beat it, no questions asked
No credit check required and no minimum credit score, approval is based entirely on your business revenue and monthly performance
$10K – $5M
Loan Amount
9+ Months
Time in Business
$30K+
Monthly Revenue
None
Min. Credit Score
Pros
No credit check required, no minimum credit score
AI underwriting delivers approval decisions in as little as 3 hours
Rate match guarantee — Fundivi will beat any competing offer
Same-day funding available, fully online with zero paperwork
Licensed direct lender operating across all 50 states
Competitive rates with no hidden platform fees or broker markups
Cons
Requires $30K+ monthly revenue, may not suit early-stage startups
Funding: Same Day
Approval: Within 3 Hours
BBB: A-
4.1 / 5
Visit SBG Funding
SBG Funding
Direct Lender
Best for fast, flexible direct lending with low revenue requirements
Same-day funding available with a simple 2-minute application and approval in as little as 2 hours
Low monthly revenue requirement of just $10K makes SBG accessible to small and growing businesses
Offers term loans, lines of credit, MCA, equipment financing and SBA loans from one direct lender
$5K – $5M
Loan Amount
6+ Months
Time in Business
$10K+
Monthly Revenue
500+
Min. Credit Score
Pros
Same-day funding available
Low $10K monthly revenue requirement
Multiple loan products as a direct lender
2-minute application process
2-minute application process
Cons
Higher rates on MCA products
Larger loan amounts may require additional documentation
Funding: Same Day
Approval: 2 Hours
4.5 / 5
Visit Biz2Credit
Biz2Credit
Direct Lender
Best for established businesses needing large capital
Apply in as few as 4 minutes, get approval in 24 hours and funding within 72 hours
Access up to $6M through CRE-backed loans, one of the highest limits in online lending
Business credit score analysis included to help identify the best financing fit for your profile
$50K – $6M
Loan Amount
18+ Months
Time in Business
$10K+
Monthly Revenue
650
Min. Credit Score
Pros
Apply in as few as 4 minutes
Up to $6M through CRE-backed loans
Approval in 24 hours, funding in 72 hours
Business credit score analysis included
Cons
Requires $250K+ annual revenue to qualify
Charges underwriting fee at time of funding
Rates not always disclosed upfront
Funding: 24–72 Hours
4.2 / 5
Visit Lendio
Lendio
Direct Lender
Best for one application, multiple offers
Single application connects you to 75+ vetted lenders, saving hours compared to individual applications
Covers every loan type: SBA, equipment, line of credit, term loans, commercial real estate
Dedicated loan advisor assigned to every borrower throughout the process
$1K – $5M
Loan Amount
6+ Months
Time in Business
$8,000+
Monthly Revenue
560+
Min. Credit Score
Pros
One application reaches 75+ lenders
Widest range of loan products available
SBA, equipment, real estate loans supported
Dedicated loan advisor for every applicant
Cons
Lendio is not the lender, final rates vary by partner
May charge a funding fee for its matching service
SBA loans can take 2 to 4 weeks to fund
Funding: 24 hrs – Weeks
BBB: A+
4.2 / 5
Visit Fundbox
Fundbox
Direct Lender
Best revolving line of credit for small businesses
Revolving line of credit up to $150K with instant approval decisions and same-day or next-business-day funding
Connects directly to your accounting software or bank account for fast underwriting with no lengthy paperwork
Draw funds whenever needed; repay over 12 or 24 weeks — only pay fees on what you use
$1K – $150K
Loan Amount
6+ Months
Time in Business
$30K+
Monthly Revenue
600+
Min. Credit Score
Pros
Instant approval decisions
Revolving credit — draw and repay as needed
Connects to accounting software for fast underwriting
No prepayment penalties
Flexible 12 or 24-week repayment terms
Cons
Credit limit capped at $150K
Weekly repayments required
Funding: Same / Next Day
Approval: Instant
3.3 / 5
Visit Fundera
Fundera
Marketplace
Best for first-time borrowers wanting expert guidance
A dedicated loan specialist reviews your profile and guides you through offers, ideal for first-time borrowers
Strong SBA loan expertise: specialists on staff to navigate 7(a) and 504 loan programs
A+ BBB rated with $2.5B+ approved, backed by NerdWallet’s editorial credibility
$2.5K – $5M
Loan Amount
6+ Months
Time in Business
$8K+
Monthly Revenue
600
Min. Credit Score
Pros
Dedicated loan advisor for every borrower
SBA loan specialists on staff
A+ BBB rating, highly trusted brand
Wide range: SBA, LOC, equipment, invoice financing
Cons
Smaller lender network compared to Lendio
Funding can take up to 7 days
No personal loan products offered
Funding: 1–7 Days
BBB: A+
The Fundamentals

What Is Invoice Financing?

A short-term funding solution that lets you unlock cash tied up in outstanding invoices, without waiting 30, 60, or 90 days for your customers to pay.

Invoice financing is a form of accounts receivable funding where a lender advances you a percentage of the value of your unpaid invoices. Instead of waiting weeks or months for a customer to pay, you receive up to 90% of the invoice face value within 24 to 48 hours.

Crucially, approval is based primarily on your customers' creditworthiness, not your own business credit score. This makes it accessible to businesses that would not qualify for traditional loans but have strong, creditworthy clients.

Up to 90%Advance rate
1% to 5%Factor fee per month
24 to 48 hrsTypical funding speed

How Invoice Financing Works

1

Submit your outstanding invoices

Share your unpaid invoices with the lender. They assess the creditworthiness of your customers, not just your business, to determine how much they will advance.

2

Receive up to 90% of the invoice value

The lender advances between 70% and 90% of each invoice's face value, typically deposited within 24 to 48 hours. You keep trading while the invoice is outstanding.

3

Remaining balance paid when customer settles

When your customer pays the invoice, the lender releases the remaining balance minus a factor fee of 1% to 5% per month. With invoice discounting you collect the payment yourself.

Invoice Financing Types and Costs — May 2026
Invoice Factoring
1% to 5% per month
Most Common
Invoice Discounting
0.5% to 3% per month
Confidential
Spot Factoring
Single invoice basis
Most Flexible
AR Line of Credit
From 15% APR
Revolving

Invoice financing approval is fundamentally different from any other business loan. Your personal credit score and business financials matter far less than the creditworthiness of your customers. A startup with a 580 credit score can be approved in 24 hours if it holds invoices from large, creditworthy clients. This makes invoice financing one of the most accessible funding options for businesses that have strong clients but limited credit history.

No minPersonal credit score required by many providers
24 hrsTypical funding speed after approval
90%Maximum advance rate on invoice value

Invoice financing and invoice factoring are not the same thing. With factoring, the lender takes over collection from your customer, which means your client knows a third party is involved. With invoice discounting, you remain in control of collections and the arrangement stays confidential. If maintaining direct customer relationships matters to your business, always confirm which structure the lender uses before you sign.

Expert Guide

How to Choose the Right Invoice Financing Provider

The right invoice financing provider depends on how much control you want over customer collections, how quickly you need cash, and whether you want to finance all your invoices or select specific ones. The difference between providers on advance rate and factor fee can cost thousands over the course of a year.

2 reasons provider comparison matters
1

Advance rates vary significantly

One provider may advance 70% of your invoice value while another offers 90%. On a $100,000 invoice that is a $20,000 difference in immediate working capital on the same invoice.

2

Factor fees compound monthly

A factor fee of 1% versus 3% per month seems small on a single invoice, but if your customers regularly take 60 to 90 days to pay, the difference adds up to thousands across your receivables book.

Beyond rate and advance percentage, recourse versus non-recourse factoring is the most important structural decision. Recourse factoring means you are liable if your customer does not pay. Non-recourse factoring transfers that risk to the lender at a higher fee. For businesses with large, reliable clients, recourse factoring is usually the cheaper choice. For businesses with uncertain customer payment behaviour, non-recourse protection is worth the premium.

What to compare before choosing a provider
  • Advance rate offered. The percentage of each invoice you receive upfront. Higher is better, but top advance rates are usually reserved for invoices from large, creditworthy customers. Always confirm the rate for your specific customer profile.
  • Factor fee structure. Fees are typically charged as a percentage per month the invoice remains outstanding. Confirm whether the fee compounds daily, weekly, or monthly and ask for the equivalent APR so you can compare providers accurately.
  • Recourse versus non-recourse. Recourse means you repay the advance if your customer does not pay. Non-recourse transfers the bad debt risk to the lender for a higher fee. The right choice depends on how reliable your customers are.
  • Notification versus confidential. Invoice factoring typically notifies your customers that invoices have been sold. Invoice discounting is confidential. If your customer relationships are sensitive, confidentiality matters and may be worth a slightly higher fee.
  • Minimum invoice requirements and contract terms. Some providers require a minimum monthly invoice volume or lock you into a 12-month contract. Spot or selective invoice financing offers more flexibility for businesses that do not want to commit all their receivables.
Product Types

Types of Invoice Financing Explained

Each invoice financing structure works differently in terms of who collects payment, who bears the bad debt risk, and how much control you retain over your customer relationships. Choosing the wrong type is the most common reason businesses overpay or lose control of collections.

Invoice Factoring
Most Popular

You sell your invoices to the factoring company, which then collects payment directly from your customers. You receive up to 90% of the invoice value upfront, then the remaining balance minus the factor fee once your customer pays. Your customers are notified the invoice has been sold.

Up to 90% advance 1% to 5% per month 24 to 48 hours
Invoice Discounting
Best for Confidentiality

You use your invoices as collateral to secure a credit facility, but you retain control of collections. Your customers are not notified and continue paying you directly as normal. The arrangement is confidential. Lower fees than factoring but you remain responsible for chasing payment.

Up to 85% advance 0.5% to 3% per month Confidential
Spot Invoice Financing
Most Flexible

Finance a single invoice at a time with no long-term contract and no minimum volume commitment. Ideal for businesses that only occasionally need to unlock cash from specific invoices rather than their entire receivables ledger. More expensive per invoice but carries no ongoing obligation.

Up to 85% advance No contract 24 to 72 hours
AR Line of Credit
Best for Volume

A revolving credit facility secured against your entire accounts receivable ledger. As you raise and collect invoices, the available limit adjusts automatically. Best for high-volume businesses with consistent invoice flow that want ongoing access to working capital without applying for individual invoices each time.

Up to 80% of AR From 15% APR Revolving
FAQ

Invoice Financing
Questions, Answered.

Clear answers to the most common questions about invoice financing, covering how it works, what it costs, and whether your business qualifies.

1 What is invoice financing and how does it work?
Invoice financing is a form of short-term business funding where you use your outstanding invoices as collateral to access cash immediately rather than waiting 30, 60, or 90 days for your customers to pay. The lender advances you between 70% and 90% of each invoice's face value, typically within 24 to 48 hours. How it works: you submit your unpaid invoices to the provider, they assess your customers' creditworthiness and advance the agreed percentage, then when your customer pays, you receive the remaining balance minus a factor fee of 1% to 5% per month. With invoice discounting you collect from the customer yourself. With factoring the lender collects on your behalf. The entire process is built around your customers' payment reliability, not your personal credit score.
2 What is the difference between invoice factoring and invoice discounting?
Invoice factoring: you sell the invoice to the lender and they take over collection from your customer. Your customer is notified that the invoice has been assigned to a third party. The lender chases payment on your behalf. Advance rates are typically higher at up to 90%, but your customer knows a finance company is involved. Invoice discounting: you use invoices as collateral for a credit facility but retain control of collections. The arrangement is entirely confidential and your customers continue to pay you directly as normal. Fees are slightly lower but you remain responsible for chasing payment. The right choice comes down to one question: does it matter whether your customers know you use invoice financing? If yes, choose discounting. If not, factoring typically offers higher advance rates.
3 Do I need a good credit score to qualify for invoice financing?
Invoice financing is one of the most credit-flexible forms of business funding available. Because approval is based primarily on your customers' creditworthiness rather than your own, many providers have no minimum credit score requirement at all. Lendio and Lendzi accept scores from 500 and 560 respectively. Fundera works with scores from 600. Biz2Credit requires 650 or higher. What matters far more than your personal credit score is the quality and payment history of your customers. A business with a 550 credit score holding invoices from a large, creditworthy corporate client will often be approved faster and at a better rate than a business with a 700 score whose customers have poor payment records.
4 How fast can I access funds through invoice financing?
Invoice financing is one of the fastest forms of business funding available. Initial setup: once your account is approved and your first batch of invoices is verified, most providers fund within 24 to 48 hours. Lendio and Lendzi both target 24 to 48 hours. Biz2Credit approves in 24 hours and funds within 72 hours. Fundera typically funds within 1 to 3 business days. Ongoing invoices: after your account is established, subsequent invoices are often funded within hours of submission since the lender already knows your business and your customers. If cash within 24 hours is critical, Lendio and Biz2Credit are the strongest options. If you are applying for the first time and need guided support, Fundera's specialist process minimises errors that cause delays.
5 What does invoice financing cost and what fees should I expect?
The main cost of invoice financing is the factor fee, charged as a percentage of the invoice value per month the invoice remains outstanding. Typical factor fees: 1% to 5% per month for factoring, 0.5% to 3% per month for discounting. On a $50,000 invoice paid in 60 days at a 2% monthly fee, the cost is $2,000. Beyond the factor fee, watch for these additional charges. Origination or setup fee: a one-time charge to open the facility, typically 0.5% to 2% of the credit limit. Service or administration fee: a flat monthly charge for managing the ledger. Early termination fee: applies if you leave a 12-month contract early. Minimum usage fee: some providers charge this if your monthly invoice volume falls below a threshold. Always request the full fee schedule, not just the factor rate, before agreeing to terms.
6 What types of invoices qualify for financing?
Invoice financing works for B2B (business to business) invoices only. Consumer invoices, retail receivables, and advance billing for work not yet completed do not qualify. Eligible invoices typically need to: be issued to creditworthy business customers, not individuals; be for goods delivered or services already completed (not future work); have a payment term of 30 to 120 days; be free of any existing liens or assignments to other lenders; and be genuine arm's length transactions between unrelated parties. Invoice size: most providers have minimum invoice amounts of $500 to $1,000 per invoice. Lendio and Biz2Credit handle larger invoice volumes from $50,000 upward, while Lendzi works with smaller businesses financing individual invoices from $10,000. Government contracts, healthcare receivables, and construction invoices may require specialist providers and are not always accepted by general lenders.
7 Is invoice financing right for my business?
Invoice financing is the right solution when your cash flow problem is caused specifically by slow-paying customers rather than low revenue or high costs. It suits you well if: you operate in B2B markets and regularly issue invoices with 30 to 120 day payment terms; your customers are creditworthy businesses even if your own credit is limited; you have reliable, recurring invoice flow rather than irregular one-off sales; and you need working capital within 24 to 48 hours rather than weeks. It may not suit you if: you operate in B2C markets and invoice consumers rather than businesses; your invoices are for work not yet completed (pre-billing); your customers have poor or unknown credit histories; or your invoice volume is too low to justify setup and minimum usage fees. If your cash flow challenge is broader than slow payments, a term loan, revenue-based facility, or line of credit may be a better fit for your needs.