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AltLINE Factoring: 2024 Review

For businesses looking for invoice factoring, AltLINE is a fast option with competitive rates.
By Randa Kriss
Last updated on January 25, 2024
Edited bySally Lauckner
Fact checked and reviewed

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Our Take

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.
Full review

AltLINE - Invoice Factoring

Max Loan Amount
Min. credit score

Pros & Cons


  • Capital available within 24 to 48 hours.
  • No collateral required.
  • Manages payment collection from your customers.
  • Accepts startups and businesses with bad credit.


  • Fees can become expensive the longer it takes your customers to pay.
  • Difficult to compare factoring costs to other types of business loans.

Full Review

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.
  • 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.

AltLINE factoring features

With AltLINE, you sell your outstanding invoices in exchange for capital — up to 90% of the value of the invoices. 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
Invoices that range from $150 to $10 million.
Advance rate
80% to 90% of each invoice’s value.
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: $350 to $500; in certain cases up to 1% of the advance amount.
  • Wire fee: $30; this fee is optional if you want faster access to your funds. Typical transfer is free through ACH payment.
Maximum overdue account
AltLINE can factor invoices that are up to 90 days outstanding.
Contract length
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.
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.

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.

No additional fees

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 only charges an origination or initial filing fee, which can range from $350 to $500, or in some cases, up to 1% of the advance amount. AltLINE also does not charge fees for ACH transfers, if however, you want access to your funds faster, it offers the option for a wire payment ($30 per transfer).

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 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.

Find the right business loan

The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.


NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including: transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to business credit bureaus and responsible lending practices. We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.

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