Factor Funding Co.

What Factor Funding Co. does

Factor Funding Company is a private, Houston-based alternative lending and factoring firm founded in 1996 that provides working capital solutions to U.S. small businesses that cannot qualify for or prefer to avoid traditional bank financing. The company targets a horizontal segment of SMBs — including staffing agencies, precision manufacturers, healthcare practices, and transportation companies — whose core problem is timing mismatches between receivables, payroll, and supplier payments. Its core product is accounts receivable factoring, supplemented by purchase order financing, asset-based loans, merchant cash advances, settlement/lawsuit funding, equipment financing, debt collections, real estate investment, and transportation/freight bill funding.

The operating model is sales-led and relationship-driven. Origination flows through a national website with an online quote tool (offers.factorfunding.com/quick-quote), a dedicated phone sales line (866.245.0020), and a partner/referral channel. Per-client funding ranges from $10,000 to $10 million per month, with capital delivered within 24–48 hours of approval, and revenue is earned primarily on transaction fees and recurring interest/asset-based spreads across the financing product set. The firm employs 11–50 people and supports its sales motion with content marketing assets (blog, ebook, calculators, glossary, newsletter) aimed at top-of-funnel SMB education.

Ownership, capital structure, funding rounds, and revenue are not disclosed in available source data, and no institutional investors, M&A activity, patents, regulatory actions, or leadership changes are documented. The company has no disclosed AI/ML, API, or proprietary technology platform beyond a standard CMS-based marketing site and a HubSpot-tracked quote funnel.

Name

Factor Funding Co.

Legal name

Factor Funding Company

Website

https://factorfunding.com

Company type

Private

Founded year

1996

Operating status

Operating

Headcount range

11–50 employees

Short description

Factor Funding Co. is a private Houston-based alternative lender founded in 1996 that provides accounts receivable factoring, purchase order financing, asset-based loans, merchant cash advances, and related working capital products to U.S. small businesses nationwide, with funding capacity from $10K to $10M per month.

Ownership category

akta.pro rank

Product category

Alternative Small Business Lending

NAICS

Other Nondepository Credit Intermediation (52229), Credit Intermediation and Related Activities (522)

SIC

Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Receivables Finance (Factoring, Invoice Discounting, Forfaiting) (FSABAHAD)

akta.pro secondary industries

Invoice Financing, Factoring & Receivables Management (FSAGAJAB), Invoice Financing & Factoring (FSAKAGAC), Merchant Cash Advance (MCA) & Revenue-Based Financing (FSAKAGAD), In-School Tuition & Fee Financing (Short-term/Bridge) (FSAKAEAG)

Keywords

• Accounts receivable factoring
• Small business financing
• Purchase order funding
• Asset-based lending
• Merchant cash advance

Headquarters

HQ city

Houston

HQ country

United States

HQ region

North America

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure, Others

Revenue model

1. Accounts Receivable Factoring: The company purchases accounts receivable invoices from businesses at a discount, providing immediate cash. Businesses receive upfront capital while the factoring company takes over collections on outstanding invoices.
2. Purchase Order Funding: Provides cash and proof of ability to pay suppliers so businesses can procure materials for manufacture or resale products. Bridges the gap between sale and payment.
3. Asset-Based Loans: Secured loans collateralized by business assets, designed for situations where traditional financing is unattainable or undesirable.
4. Merchant Cash Advances: Provides cash advances on future credit, debit, installment sales, and consumer contracts.
5. Settlement/Annuity/Lawsuit Funding: Lump-sum cash advances on scheduled or likely future payments from settlements, annuities, or lawsuits.
6. Equipment Financing: Funding methods for acquiring or disposing of new or used equipment on short or long-term basis without significant cash outlay.
7. Debt Collections: Recovery of overdue and uncollected sums of money and assets owed, converting debts into cash.
8. Real Estate Investment: Funds based on outstanding notes, real estate value, or equity in commercial properties with minimal restrictions on use of funds.
9. Transportation & Freight Bill Funding: Specialized funding for transportation companies to bridge cash flow gaps from unpaid freight bills.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels6 records

Core offering

Factor Funding Co. purchases small businesses' accounts receivable invoices at a discount and extends purchase order, asset-based, merchant cash advance, settlement, equipment, transportation/freight, and real estate-backed financing. The company provides working capital ranging from $10,000 to $10 million per month to U.S. small businesses that cannot access traditional bank loans, with funding delivered within 24–48 hours of approval. It also offers related debt collection services to recover overdue receivables.

Product overview

Factor Funding Co. is a factoring and small business funding company offering a comprehensive suite of financial services. The core offering centers on accounts receivable factoring, which turns unpaid invoices into immediate capital. Additional products include asset-based loans, purchase order financing, merchant cash advances, settlement funding, equipment financing, debt collection services, real estate investment, and transportation/freight bill funding. The company positions itself as an alternative financing source for businesses that cannot access traditional bank loans, serving companies from startups to 100+ person businesses with funding amounts ranging from $10K to $10 million per month, with funding approval converting to cash within 24-48 hours.

Differentiator

Problem solved

Functional benefit

Products and services

• Accounts Receivable (AR) Funding / Factoring A factoring product that purchases small businesses' outstanding invoices and accounts receivable at a discount, providing immediate cash or revolving lines of credit and outsourcing bill collection. Designed for small businesses experiencing slow customer payments that cannot access traditional bank loans.
• Asset-Based Loan A short-term business loan secured or collateralized by one or more business assets, offered to small businesses in situations where traditional bank financing is unattainable or undesirable.
• Purchase Order (PO) Financing Provides cash and proof of ability to pay suppliers so that small businesses can procure materials for manufacturing or resale, bridging the gap between sale and supplier payment.
• Merchant Cash Advance / Merchant Funding Provides cash advances on future credit, debit, installment sales, and consumer contracts, allowing small businesses to generate more sales and focus on managing growth rather than cash flow or collections issues.
• Settlement Funding (Lawsuit / Annuity Funding) Provides lump-sum cash advances on a portion or all of scheduled or likely future payments from settlements, annuities, or lawsuits before they are due or awarded.
• Equipment Financing and Lease Buyback Funding methods for buyers and sellers to acquire or dispose of new or used equipment on short- or long-term bases, generally without significant cash outlay.
• Debt Collections Service that recovers overdue and uncollected sums of money and other assets owed to a business, converting debts and delinquencies into cash and reducing associated losses.
• Real Estate Investment Funding Real estate, notes, and equity investment program providing funds based on the underlying value of commercial properties, outstanding notes, or equity exchange with little to no restriction on the use of funds.
• Transportation and Freight Bill Funding Specialized funding for transportation companies that converts unpaid freight bills and invoices into immediate cash to bridge cash-flow gaps in the trucking and freight industry.

Quantifiable outcome

• Funding decisions and capital delivery within 24-48 hours of approval
• +1 more outcomes

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators2 records

Recent moves4 records

Expansion highlights5 records

Direct peers

• BlueVine: Online factoring and working-capital lender for small businesses. Competes directly with Factor Funding's AR factoring and line-of-credit products through a digital, faster-approval model.
• Fundbox: Provides invoice factoring and lines of credit to small businesses via an online platform. Directly overlaps Factor Funding's AR factoring and SMB working-capital offerings.
• Riviera Finance: Established commercial factoring company serving SMBs with AR financing, similar ticket sizes, and a comparable sales-led GTM. Closest traditional competitor to Factor Funding's core business.
• AltLine (The Southern Bank Company): SMB invoice factoring platform offering AR financing across the U.S., competing for the same small-business customers that Factor Funding serves.
• Breakout Capital: Provides purchase order financing, factoring, and asset-based lending to small businesses — overlapping several of Factor Funding's product lines.
• Kapitus: Alternative small business financing provider offering merchant cash advances, factoring, and working capital — direct overlap with Factor Funding's MCA and broader alternative-lending products.
• Liberty Capital Group: Factoring and asset-based lending company serving SMBs, with a comparable product mix including AR factoring and PO financing.
• TMR Now (The Money Resource): Provides factoring, purchase order financing, and merchant cash advances to small businesses, closely mirroring Factor Funding's multi-product, sales-led approach.

Regional players

• PRN Funding: Specialized freight bill and transportation factoring company. Comparable to Factor Funding's transportation/freight bill funding product, though with a narrower vertical focus.

Emerging players

• Headway Capital: Online working-capital provider targeting small businesses with lines of credit and short-term financing. Competes in the broader SMB alternative-lending space where Factor Funding operates.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights5 records

Customer concentration

• Xx.com/factorfunding
• Facebookfacebook.com/factorfunding
• LinkedInlinkedin.com/company/factor-funding-company

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Factor Funding Co.