Senior Writer & Content Strategist | Small business, business banking, business loans
Randa Kriss is a senior writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona University (formerly Iona College).
Senior Writer & Content Strategist | Small business, business banking, business loans
Randa Kriss is a senior writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona University (formerly Iona College).
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
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Senior Writer & Content Strategist | Small business, business banking, business loans
Randa Kriss is a senior writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona University (formerly Iona College).
Senior Writer & Content Strategist | Small business, business banking, business loans
Randa Kriss is a senior writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona University (formerly Iona College).
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
NerdWallet's content is
fact-checked for accuracy, timeliness, and relevance by humans.
It undergoes a thorough review process involving writers and editors to ensure
the information is as clear and complete as possible. Learn more by checking
our
Editorial Guidelines.
Content was accurate at the time of publication.
Why trust NerdWallet
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
50+ categories of the best business loan selections.
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
Advertiser disclosure
You’re our first priority.
Every time.
We believe everyone should be able to make financial decisions with
confidence. And while our site doesn’t feature every company or
financial product available on the market, we’re proud that the guidance
we offer, the information we provide and the tools we create are
objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence
which products we review and write about (and where those products
appear on the site), but it in no way affects our recommendations or
advice, which are grounded in thousands of hours of research. Our
partners cannot pay us to guarantee favorable reviews of their products
or services. Here is a list of our partners .
AltLINE - Invoice factoring
Overview
The bottom line:
AltLINE is a good option for a variety of B2B businesses that need a fast and flexible way to manage cash flow issues.
Loan details
Min. Loan Amount
$10,000
Min. Term Length
1 months
Max Loan Amount
$5,000,000
Max Term Length
3 months
Qualifications
Min. credit score
300
Pros & Cons
Pros
Capital available within 24 to 48 hours.
No collateral required.
Manages payment collection from your customers.
Accepts startups and businesses with bad credit.
Cons
Fees can become expensive the longer it takes your customers to pay.
Difficult to compare factoring costs to other types of business loans.
Charges an origination fee.
AltLINE, a division of the Southern Bank Company, is an online lender that specializes in invoice factoring. The company is known for its fast funding process, flexible qualification requirements and competitive factoring rates.
AltLINE is best for borrowers who:
Have business-to-business (B2B) companies. AltLINE offers factoring services, which are only available to businesses that have outstanding invoices to submit. Business-to-consumer (B2C) companies will need to explore other business loan options.
Need capital quickly. You only need to complete a brief form to receive a factoring quote from AltLINE. After you complete an application and are approved, AltLINE can provide funds within 24 to 48 hours (though the majority of invoices are funded same day, according to the company).
Don’t meet the eligibility criteria for other lenders. When AltLINE underwrites your application, it focuses heavily on the creditworthiness of your customers, as opposed to more traditional business loan requirements. As a result, both startups and borrowers with bad credit may qualify.
With AltLINE, you sell your outstanding invoices in exchange for capital — up to 90% of the value of the invoices for most industries. AltLINE collects payment directly from your customers, and once those transactions are complete, it releases the remainder of the invoice value to you, minus fees.
Here’s what you need to know about its factoring services:
Funding amount
$10,000 to $5 million in invoices per month.
Advance rate
80% to 90% of each invoice’s value for most industries; up to 98.5% for freight factoring companies.
Factoring fees
Generally range from 0.80% to 3.00% per 30 days an invoice is factored. Varies based on your creditworthiness, the invoice value and typical amount of time your invoices remain outstanding.
Additional fees
Initial filing/origination fee: $150 to $500; in certain cases up to 1% of the advance amount.
Wire fee: $15 to 30, depending on the industry; this fee is optional if you want faster access to your funds.
ACH fee: $0 to $3, depending on the industry.
Maximum overdue account
AltLINE can factor invoices that are up to 90 days outstanding.
Contract length
6 to 12 months; shorter or longer contracts may be available on a case-by-case basis.
Funding speed
You can receive funds within 24 to 48 hours of submission, possibly same day.
When you get a factoring contract with AltLINE, you have the option to factor all of your accounts receivable, sometimes referred to as whole ledger factoring. On the other hand, you can factor certain accounts or invoices, as long as you maintain an agreed-upon volume throughout your contract. AltLINE does not provide one-off factoring transactions.
It’s also important to note that AltLINE offers recourse factoring (the most common type of factoring). This means that if your customers fail to pay their invoices, you are ultimately held responsible for the debt.
AltLINE factoring requirements
AltLINE does not set minimum personal credit score, time in business or annual revenue requirements. Although AltLINE may look at these factors, it mainly underwrites your application based on the creditworthiness of your customers, the age of your receivables and the value of your invoices.
You’ll need the following to qualify for invoice factoring from AltLINE:
AltLINE will use your customer list and accounts receivable aging report to review the credit quality and payment behaviors of your customers.
Where AltLINE stands out
Fast access to funds
AltLINE offers a simple and streamlined application process. You’ll fill out a brief form to get a quote and an AltLINE representative will get in touch to discuss your options. To complete an application, you’ll need only minimal documentation, including your customer list and contracts, an accounts receivable aging report, business ownership documents and personal identification.
Once you’re approved, AltLINE will help you set up a factoring account. Then, you’ll be able to submit your invoices and receive funds within 24 to 48 hours. According to AltLINE, the majority of invoices are funded same day.
Easy to qualify
Because AltLINE doesn’t set a minimum credit score or time in business requirement, its factoring services can be a good option for new B2B companies or borrowers with bad credit. Additionally, unlike more traditional lending options, AltLINE does not require you to put up physical collateral, such as equipment or real estate. The lender does, however, take out a Uniform Commercial Code (UCC) lien on your business and requires a personal guarantee.
Not only does AltLINE offer competitive factoring rates, but it also charges very few fees. Some factoring companies charge monthly monitoring and access fees, renewal fees, as well as other extraneous costs.
AltLINE does not charge these types of fees. The lender does charge an origination or initial filing fee, which can range from $150 to $500, or in some cases, up to 1% of the advance amount. AltLINE also does charge fees for ACH transfers and wire payment.
Where AltLINE falls short
Specific type of financing
Unlike some lenders, which may offer many different types of business loans, AltLINE focuses on factoring services. As such, there are some drawbacks of invoice factoring itself that you may want to consider:
Cost. With factoring, you sacrifice the full value of your invoice for faster access to funds. Although AltLINE offers competitive rates, factoring can become expensive the longer it takes your customers to pay.
Loss of control. In a factoring agreement, your customers will repay your lender directly. As a result, you lose some control over your collections process and customer relationships. Although AltLINE works transparently with your customers through the process, you may prefer to retain this type of control. If that’s the case, you might consider invoice financing.
Can’t be used to build business credit. Many business loan options can help you build business credit; if you make timely payments, the lender reports this information to the commercial credit bureaus. Factoring, however, isn’t a traditional lending transaction — it is not reported to the credit bureaus and therefore cannot be used to build credit.
Alternatives to AltLINE
If you’re not sure if factoring is the right option for your business, it may be helpful to browse different small-business lenders. On the other hand, if you want to explore alternative factoring companies, you might consider the following:
FundThrough
FundThrough can be a good option if you want to factor invoices directly through your accounting or invoicing software. With FundThrough, you can connect your QuickBooks or Enverus OpenInvoice account to its online platform and select which invoices you want to fund.
Once your invoices are submitted, FundThrough works with your customer to verify them and redirect payment to its platform. After you’re approved, you’ll receive payment by the next day. To qualify for invoice factoring from FundThrough, you’ll need an outstanding invoice of at least $100,000 in accounts receivables or invoices to one customer.
For this flexibility, however, FundThrough charges more expensive fees than AltLINE. The company charges 2.75% per 30 days, and rates increase with longer net terms.
TAB Bank
TAB Bank offers invoice factoring that can be a good option if you’re looking for personalized customer service. Through TAB, you can access dedicated relationship managers who will discuss your financing needs and create a customized factoring solution. When you apply for factoring, you’ll also work with a financial advisor, who will help explain terms and factoring rates.
TAB provides factoring to businesses in a variety of industries and does not have a minimum personal credit score requirement. The bank, however, does not provide details regarding rates, other fees or advance amounts on its website. You’ll have to reach out to a representative directly for more information.