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What Are the Best Non-Recourse Factoring Companies?

Non-recourse factoring companies are businesses that won’t charge you for the full invoice amount if your customers fail to pay. But it’s also harder to qualify to work with these companies as you’ll need a high credit score and large invoice volume. 

But if you do qualify, the benefits can be immense. To get you started on your way to a non-recourse factoring relationship, we’ve summarized the top 5 options when it comes to non-recourse factoring companies. 

Quicklook: Best Non-Recourse Factoring Companies

  1. Best For Digital Invoice Management: Triumph Business Capital
  2. Best For Invoice Factoring: RTS Financial
  3. Best For Small Businesses With Limited Annual Revenue: eCapital
  4. Best For Transparent Fees: BlueVine

4 Best Non-Recourse Factoring Companies

Ensure steady cash flow for your business while eliminating the need for following up with customers when they delay payments or fail to pay. Allow these non-recourse factoring companies to handle your invoicing for you.

Triumph Business Capital

Triumph Business Capital

Best For: Digital Invoice Management

Triumph Business Capital offers an outstanding online portal so you can view and manage your invoices digitally. You can run and view reports and check on the status of your invoices. 

Minimum Revenue Threshold: $100,000 per month

Maximum Funding: Up to 100% of the invoice value

Funding Release Speed: Same day funding is available

Advance Rate: Up to 90%

Discount Rate: 1% to 4% monthly

APR: 2.5% to 4.99%

Special Features

  • Portal for easy invoice management
  • Online credit checks
  • Up to 100% advance on invoices
  • Get discounts on your fuel


  • The company specializes in invoice factoring
  • Recourse and non-recourse factoring available
  • Option to factor some or all of your invoices
  • Qualifications are flexible
  • A lower credit score means less favorable rates 


  •  $300 origination fee plus factoring fee
  •  Application requires a hard credit pull
  •  Factor fees are not transparent

RTS Financial

RTS Financial

Best For: Invoice Factoring Along With Other Freight Industry Services 

RTS Financial is another organization that specializes in the trucking industry. That means that you’ll get special perks and benefits that fit your business and your unique needs. One such perk is managing your financial loans in one place because RTS offers equipment leasing programs alongside invoice factoring and fuel cards. 

Minimum Revenue Threshold: $150,000 per month

Maximum Funding: No limits

Funding Release Speed: 24 hours or less

Advance Rate: Up to 97% of the invoice value

Discount Rate: Inquire with RTS Financial for details

APR: 2.7% to 3.5%

Special Features

  • Mobile app available to help you manage your invoices
  • Fuel discounts
  • No fees or penalties for smaller volumes
  • Customer support is easy to reach 


  • No processing fees
  • Speedy invoice advances  
  • Submit multiple invoices at once 
  • High-quality image scanning through the mobile app
  • Run reports within the app or online


  • You’ll need to complete a full application to view rates
  • Customers complain about the difficulty in canceling contracts


Best For: Small Businesses With Limited Annual Revenue

eCapital makes the list because it has a lower minimum revenue threshold compared to its competitors. But it also takes a lot longer to release funds, which might not be favorable for your organization depending on your needs. The company does offer competitive rates to help small companies retain more of their revenue so they can grow and thrive.

Minimum Revenue Threshold: $360,000

Maximum Funding: $10 million

Funding Release Speed: Funding can take as long as 7 days

Advance Rate: Up to 90%

Discount Rate: 1.25% to 2%

APR: 16% to 55%

Special Features:

  • Competitive rates
  • Lower minimum income threshold compared to competitors
  • Good option if you’ve struggled to find a company willing to work with 


  • Borrower requirements are much easier to achieve
  • Willing to advance larger amounts than many of its competitors
  • Fast funding is possible, but you’ll need to work with the lender


  • Fees can vary based on how timely your customers are in paying their invoices
  • eCapital does not offer a variety of funding options; only invoice factoring



Best For: Transparent Fees

BlueVine is a flexible and transparent invoice factoring company. You can choose from recourse or non-recourse agreements to meet your needs. The application process is clear and simple so you won’t have to spend your precious time working to get an approval. The minimum revenue threshold is also friendly toward newer and smaller businesses.

Minimum Revenue Threshold: $10,000 per month for at least 3 months

Maximum Funding: Up to $5 million

Funding Release Speed: As little as 24 hours

Advance Rate: 85% to 90%

Discount Rate: Up to 3%

APR: Starts at 4.8%

Special Features:

  • Lower minimum revenue threshold
  • Flexible terms based on your needs
  • Simple application process


  • Established and financially secure lender 
  • Large funding amounts are available
  • Funding options include term loans and credit lines
  • Dedicated representative will answer questions 
  • Great customer service that provides a good experience


  • Only works with B2B businesses
  • Best rates reserved for those with a credit score of 600 or higher

What Is Non-Recourse Factoring?

Non-recourse factoring is when the invoice factoring company does not require that you purchase back or pay for invoices that your clients are overdue on. Instead, the financial institution that purchased your invoices assumes all liability and credit risk for those invoices.

That means that you don’t have to worry about paying back the advances that you receive for each invoice you sell to the factoring company. The money will certainly be yours to keep, which will prevent serious financial disruptions in the case of a non-paying client.

How Does Non-Recourse Factoring Work?

Non-recourse factoring works a lot like recourse factoring, with the exception of having to pay off any unpaid invoices. Here’s the simple process for factoring an invoice.

  1. Submit the invoice to the factoring company once you’ve completed the work according to its regular terms with your customers.
  2. The invoice factoring company will then review the invoice and verify it with your customer. 
  3. Once verified, the lender will provide immediate funding for a large percentage of the invoice value.
  4. Your client works with the invoice factoring company to pay the invoice based on its terms.
  5. Once the client pays the invoice, the factoring company provides payment of the remaining invoice value, less the factoring company’s fees that you agreed upon when entering into the contract with them.
  6. This is the step that differs from recourse factoring. In the case of non-payment, the invoice factoring company will absorb that cost because of the agreement you have with them for non-recourse financials. 

What to Consider With Non-Recourse Factoring Companies

Whether a factoring agreement is a recourse or non-recourse is just one consideration you have when entering into these agreements. You should also consider these factors when evaluating factoring contracts.

Minimum Revenue Threshold

The minimum revenue threshold helps the invoice factoring company manage its risk and reward. Without a certain amount of income, you might be viewed as a far riskier partner for a contract like this. Before going through the application process, review the minimum revenue threshold to see if you qualify. Otherwise, you’ll waste a great deal of time on applications.

Maximum Funding

The maximum funding will tell you how many of your invoices you can factor with the company. This will guide you in knowing whether you can get the working capital you need to manage your cash flow effectively. Some companies will only factor a small amount until they receive payment from a few of your customers to offset their risks.

Funding Release Speed

Once you enter into an agreement with an invoice factoring company, you want to know that they will release the advance funds quickly so you’ll have the funds you need to operate your business. Some factoring companies get you that money within hours, while others can take a few days.

Advance Rate

The advance rate is a percentage of the total invoice value that the factoring company will give you before it receives payment from the customer on the full invoice amount. This is the influx of cash that most companies are looking for when they consider invoice factoring and can determine whether the partnership will provide the benefits you need it to.

Discount Rate

The discount is the total amount you’ll pay the invoice factoring company for their services. It’s a percentage of the total invoice value. As such, it generally falls within 1% to 5% range of the total price. 

So, the lower the discount rate, the less you’ll pay for the invoice factoring service. Plus, this is the amount that the invoice factoring company will retain after the customer pays the full value of your invoice.


As you evaluate the best funding arrangement for your business, APR can tell you what you would’ve paid for those same funds had you gotten a traditional loan. This calculates the funds based on the discount rate and advance rate using an annualized percentage. 

The APR for factoring tends to be much higher than a traditional business loan, but you also won’t have other outside fees, such as underwriting. Additionally, it can be easier to establish a factoring relationship than a loan because you’re essentially using the invoice as collateral with the lender. 

Finding the Best Invoice Factoring Terms

Much like any other financial tool or resource, you have to pay close attention to the terms of an invoice factoring relationship to make sure they are favorable for you. Evaluate the invoice factoring terms for a few possible lenders before entering into an agreement with them. 

Look for more attractive cash flow solutions for your trucking business? On top of invoice factoring, TAFS offers business loans, fuel discounts, and 1-hour advances. Find out more on growing your business with TAFS!


What is a non-recourse factoring company?

A non-recourse factoring company enters into an invoice purchase agreement with companies. And if the customer does not pay the invoice, the company does not have to return the advance or pay off the total invoice value.

What is the difference between recourse factoring and non-recourse factoring?

In recourse factoring, if the customer does not pay the total invoice amount, you must pay the invoice factoring company the value of the invoice. Non-recourse factoring companies do not charge you if your customer does not pay.

Why would a company sell receivables to another company?

Selling receivables can provide a steady cash flow for your business and aid you in avoiding taking out a business loan to cover expenses in case of equipment failure or unexpected business expenses.

TAFS is More than Freight Factoring

As one of the industry leaders, TAFS assists trucking companies to increase cash flow with factoring rates as low as 2.49% and 1-Hour Advance option.

TAFS is More than Freight Factoring

As one of the industry leaders, TAFS assists trucking companies to increase cash flow with factoring rates as low as 2.49% and 1-Hour Advance option.