AltLINE: Quick Access to Funds Tied Up in Unpaid Invoices
For B2B businesses looking for invoice factoring, AltLINE is a fast option with competitive rates.
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 fast to fund, has flexible qualification requirements and offers competitive factoring rates.
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. Once those transactions are complete, it releases the rest of the invoice value to you, minus fees.
Consider AltLINE if you:
- Have a business-to-business (B2B) company. AltLINE’s factoring services are only available to businesses that have outstanding invoices. 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 approval, AltLINE can provide funds within 24 to 48 hours. The majority of invoices are funded the 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 rather than more traditional business loan requirements. As a result, both startups and borrowers with bad credit may qualify.
» MORE: Compare startup business loans
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
AltLINE factoring details
| 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 100% 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 |
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| 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 the same day. |
With AltLINE, you have two factoring options:
- Factor all your accounts receivable, sometimes referred to as whole ledger factoring.
- Factor only certain accounts or invoices (as long as you maintain an agreed-upon volume).
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 responsible for the debt.
AltLINE factoring requirements
AltLINE does not set personal credit score, time in business or annual revenue requirements. The company may still weigh these factors. But AltLINE largely considers your application based on the following:
- Creditworthiness of your customers.
- Age of your receivables.
- Value of your invoices.
You’ll need the following to apply for invoice factoring from AltLINE:
- List of existing and potential customers.
- A business bank account.
- A form of personal identification.
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 (see the list above).
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.
Easy to qualify
AltLINE doesn’t set a minimum credit score or time in business requirement. Its factoring services, then, can be a good option for new B2B companies or borrowers with bad credit. And unlike more traditional lending options, AltLINE does not require 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.
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Minimal additional fees
Not only does AltLINE offer competitive factoring rates, but it also charges minimal extra 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. This 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 to consider:
- Cost. With factoring, you sacrifice the full value of your invoice for faster access to funds. 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 instead of you. As a result, you lose some control over your collections process and customer relationships. If you prefer to retain this type of control, consider invoice financing instead.
- Won’t 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. But factoring isn’t a traditional lending transaction, so it’s not reported to the credit bureaus.
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. But 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. The company’s software can connect to your QuickBooks or Enverus OpenInvoice account so you can select which invoices you want to fund.
Once you submit your invoices, 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.
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. They’ll discuss your financing needs and create a customized factoring solution.
TAB provides factoring to businesses in a variety of industries and does not have a 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 for more information.