

A simple invoice software is all you need for your invoices. If it's more elaborate, it can support you in steering and managing your work.
Where Thought Leaders go for Growth
As a small business, you may feel like you're constantly playing catch-up. You're always looking for ways to grow and unlock your company's full potential. One way to do this is by factoring your invoices.
Factoring is a great way to get the cash you need to run your business. It can help you overcome financial challenges, and give you the breathing room you need to expand.
In this article, we will explain what small business factoring is, and discuss the benefits of using it. We'll also provide tips on how to choose the best small business factoring solution for your company, and review 12 of the best software providers on the market.
Factoring is a popular choice for smaller businesses because the process is simple, straightforward, and fast compared to more traditional financing options. Simply put, factoring is a financial transaction where a third party (the factor) purchases your outstanding invoices at a discounted rate. They then collect payment from the customer on those invoices and keep the difference as their fee. In other words, it's a way to access working capital quickly and easily without having to take out a loan.
There are several key benefits of small business factoring. First, it can be a great way to get quick access to working capital without having to take out a loan. Second, it can help speed up the payment process and improve cash flow for small businesses. Third, small business factoring can help you manage your accounts receivables more efficiently. This can be especially helpful if you're dealing with customers who take a long time to pay invoices.
Before you can begin small business factoring, there are a few steps you'll need to take. First, you'll need to identify which invoices you'd like to factor. Then, you'll need to find a reputable small business factoring provider and open an account with them. Finally, you'll need to submit the invoices you'd like to factor and wait for the small business factoring provider to approve them. Once approved, your small business factoring provider will typically fund you within one to three days.
Choosing the best small business factoring solution can be tricky. You'll want to look for a reputable small business factoring provider that offers competitive rates and terms. You'll also want to make sure they are transparent in their fees and have sound customer service. Additionally, you'll want to make sure they offer automated invoicing and easy access to your accounts. With that in mind, let's take a look at 12 reputable small business factoring software solutions, their features, key advantages, and possible limitations.
FreshBooks is a cloud-based accounting software designed to help small businesses manage their finances. With its intuitive user interface and free 30-day trial, FreshBooks is an ideal solution for entrepreneurs looking to streamline their financial operations.
The only real drawback of using FreshBooks is that some of its more advanced features may be too complex for some users who are not familiar with accounting software.
FundThrough is a software that helps small businesses to raise money by factoring invoices. It has a number of features that make it an attractive option for small business owners, including the ability to factor large and small invoices, track payments, and receive alerts when payments are due. Let’s have a closer look at what the factoring solution offers.
The main drawback is that there may be fees associated with using the service depending on the type of invoice being factored. Additionally, some users may find the process of setting up an account slightly complex or time consuming.
Riviera Finance is another reliable solution that small business owners can use to factor their business' invoices. It provides businesses with the power to ensure growth without diluting equity or incurring debt. After invoices are submitted and verified, they are purchased by Riviera Finance at a discounted rate, allowing businesses to access cash quickly.
Triumph Business Capital is a leading invoice factoring company that provides advances on outstanding invoices. With over 7,000 small to mid-size businesses served since 2004, Triumph has become a trusted partner for many companies. Here’s what the factoring solution offers to small businesses:
Bonsai is a business management software solution used by over 500,000 small businesses globally. It provides a comprehensive suite of tools to help entrepreneurs manage their business operations and finances with ease. Whether you're just starting out or running an established business, Bonsai can help you stay organized with your business factoring.
The main disadvantage of using Bonsai is that it may not be suitable for larger businesses due to its limited feature set compared to more advanced enterprise factoring solutions available on the market today.
altLINE is a small business factoring solution provided by The Southern Bank. It offers businesses the flexibility of an independent financing company with the cost savings of a bank. With altLINE, businesses can receive an advance between 70% and 90% of an invoice's value that they can use to invest in their business.
Next up in our review of small business factoring solutions is TCI Business Capital. This software provides businesses with an easy to use interface, comprehensive data, and flexible, affordable pricing.
The only potential drawback of using TCI Business Capital is the limited availability of some data (e.g., information on past due loans). However, this does not detract from the overall value of the software as a solution for small business factoring needs.
Next, let's take a look at Resolve as a small business factoring solution. As one of many such tools available today, it is designed to help improve cash flow, provide credit risk analysis, and automate invoicing. With its fast payment system and flexible terms, Resolve promises to be an attractive option for those looking for an easy business factoring solution.
The main disadvantage of using Resolve is that it does require a fee for its services, which may not be feasible for some businesses depending on their budget.
OTR Solutions is another factoring solution available to small businesses. It provides a variety of features that make it a good choice for early-stage or growing businesses. Some key features of OTR Solutions include an easy-to-use interface, a wide range of options and competitive rates.
As a small business owner, you know that having access to working capital can be a real lifesaver. BlueVine is one of the most convenient ways to finance your small business with invoice factoring. Let’s take a look at the key features, advantages and disadvantages of this small business factoring solution.
American Receivable is another small business factoring solution provider that can be helpful for enterprises that need to get some extra money flow. It has a lot of strong features that make it a great choice for businesses with growth ambitions.
Fundbox is another small business factoring solution that provides businesses with the funds they need to grow. It's a reliable choice for businesses looking for an easy and efficient way to get access to capital. With Fundbox, businesses can factor up to $1 million per transaction in multiple currencies and use its user-friendly interface.
And there you have it – small business factoring demystified! As we have seen, small business factoring is a great way to manage cash flow and improve small business profitability.
It can help small businesses grow by unlocking capital that would otherwise be tied up in invoices, and it's becoming increasingly popular due to the range of small business factoring software solutions available. While you could use your own financials and accounts to manage your small business factoring, the 12 small business factoring software solutions we have reviewed in this article offer a range of features that make the process simpler, more efficient and cost-effective.
Whichever small business factoring application you decide to go with, make sure it is the right fit for your small business. We wish you all the best on your small business factoring journey!