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Factoring is a business transaction in which one company provides another with funds to finance the purchase of an asset, such as accounts receivable or inventory. Companies that facture often provide financial services for businesses that can’t find credit elsewhere.
When you use non-recourse factoring, the factoring provider does not hold your company accountable if a client fails to pay an invoice. Non-recourse factoring is harder to qualify for than recourse factoring since non-recourse factoring frequently requires a bigger invoice volume and consumers with excellent credit. While most invoice factoring providers offer non-recourse factoring to their top clients, we’ve narrowed down the top five solutions for small businesses.
1. Triumph Business Capital
Why do we suggest Triumph Business Capital?
Triumph Business Capital is at the top of our list of non-recourse factoring providers due to its low minimum revenue criterion and large factoring capacity. Its capacity to serve both small and big customers makes it an appealing option for anybody looking for non-recourse factoring.
2. altLINE
Why do we suggest altLINE?
AltLINE is a wonderful non-recourse invoice factoring supplier for small company owners looking for a solution with quick payback terms. AltLINE’s fees are structured in such a manner that it benefits bills that are paid within 30 days. altLINE would be the greatest answer for a small company with a high-quality and quick-paying consumer.
3. Riviera Finance
Why do we suggest Riviera Finance?
Riviera Finance is one of our favorite companies since it provides cash within 24 hours of approval and will advance up to 95% of your bills. There is also no monthly minimum revenue requirement, which is uncommon in the invoice factoring market. Rates may be somewhat higher than those offered by rivals. Smaller firms with high-quality clientele, on the other hand, maybe eligible.
4. 1st Commercial Credit
Why we suggest 1st Commercial Credit
1st Commercial Credit is a well-known lender with a reputation for being willing to lend to consumers with less-than-perfect credit. Small business owners may be eligible for non-recourse factoring in certain situations, according to the firm, but you’ll need to contact the lender directly for additional details. According to online customer evaluations, a variety of fees are added to the advance rate, raising the final cost of factoring. It will, however, advance up to 95% of bills, one of the highest rates in the factoring sector.
5. eCapital
Why we suggest eCapital?
eCapital specializes in the transportation and freight sectors and provides non-recourse invoice factoring. It has a factoring capacity of $10 million and will advance up to 90% of invoices. Furthermore, eCapital will not draw credit information about you or your company, instead of focusing on the creditworthiness of your consumers.
How We Assessed Non-Recourse Factoring Firms
We initially looked at the total cost and conditions that each non-recourse factoring company gave while analyzing them. Then we looked at how long it would take to get finance and other conditions, such as how long you’ve been in the company.
Conclusion
While non-recourse factoring is more difficult to get than other types of finance, it shields the company owner from potential losses. Establishing a long-term connection with a factoring provider is the ideal approach to qualify for non-recourse factoring since the history of payments from debtors can be simply cited when you seek a non-recourse contract.
Factoring companies are a great option for businesses that need quick cash. There are many factors to consider when choosing the best company, but here are five of the best non-recourse factoring companies.
Frequently Asked Questions
What percentage does OTR capital charge?
OTR capital charges a percentage of every trade.
