Best invoice factoring for Latino-owned businesses

The best invoice factoring for a Latino-owned business advances the money from your invoices at a clear cost, lets you choose which invoices to sell and explains the contract in a language you're comfortable with. If your customer is a large company or a government agency, FundThrough and Riviera Finance are well-known options; if you invoice every week, compare recourse factoring from a firm that knows your industry. And if you'd rather not sell your invoices at all, Merchant Fund Express, our recommended funder, accepts ITIN applicants, reviews sales and deposits and offers Spanish-speaking support.

Factoring fits many Latino-owned businesses that sell to other businesses: drywall, roofing and concrete contractors, commercial cleaning companies, carriers, food distributors and staffing agencies. They all share one problem: you do the work today and get paid in 30, 60 or 90 days. Here we compare six options using facts taken from official sites on October 20, 2026. Leer en español.

The 6 best invoice factoring options for Latino-owned businesses

1. Merchant Fund Express (recommended funder). This isn't factoring: it's working capital based on your sales and deposits, so you don't sell your invoices and no factor calls your customers. It's the best fit if you want to protect your customer relationships or if you have lots of small invoices. It handles $5,000 to $5,000,000, considers credit from FICO 500, often decides in 2 to 4 hours and doesn't require collateral in most cases. It accepts applicants with an ITIN (no SSN needed), offers Spanish-speaking support, and applying is free with no impact to your credit.

2. FundThrough. Per its site, it advances 100% of the invoice value minus a flat fee, deposits within 24 hours after your first transaction and lets you choose which customers and which invoices to sell (single-invoice or “spot” factoring). It's built for invoices to large companies or government in the U.S. and Canada. Best if you have one big customer that pays slowly and you don't want a contract with a monthly minimum.

3. Riviera Finance. It offers non-recourse factoring, has more than 25 offices in the U.S. and Canada, says it pays within 24 hours of verifying the invoice and works with any industry that invoices its customers. Its site has a Spanish-language version. Best if you worry about a customer not paying and want an office you can actually talk to.

4. Recourse factoring from a specialist in your industry. Some factors only work with trucking, construction or temporary staffing. Because they know your customers, they often charge less and approve faster. “Recourse” means that if your customer doesn't pay, you're on the hook for the invoice. Best if you invoice weekly to customers who pay reliably.

5. SBA 7(a) Working Capital Pilot (WCP) line. A monitored, SBA-backed line of credit that lets you borrow against your receivables and inventory. It goes up to $5,000,000 with terms up to 60 months, and it requires a full 12 months of operations and current receivables reports. If you qualify, it usually costs less than factoring. Note: since March 1, 2026, 100% of the owners of a 7(a) applicant must be U.S. citizens or nationals with their principal residence here.

6. SBA microloan or CDFI. The SBA microloan goes up to $50,000, with a maximum term of seven years and rates that generally run from 8% to 13%, according to the SBA. Nonprofit community organizations make these loans, and many have bilingual staff. Best for a small, low-cost amount if you can wait.

How we chose. We don't use ratings, scores or made-up statistics. We compared each option on criteria you can check yourself: speed, minimum time in business, minimum credit, whether it accepts an ITIN or owners without an SSN, documents required, amounts and collateral. We only include facts each company publishes on its official site; if we couldn't confirm something, we left it out. Read the full method in how we rank business funding options.

Comparison table

“Ask before you sign” means the official site doesn't make it clear. Get the answer in writing.

Why factoring fits so many Latino-owned businesses

Many Latino-owned businesses that sell to other companies work as subcontractors: the general contractor gets paid by the property owner and then pays you. That stretches out collection and puts your cash flow in someone else's hands. Factoring looks mostly at your customer's credit, not yours, and that helps in some very common situations:

• A short credit history because you've been in the country only a few years or rarely use credit.
• An ITIN instead of an SSN. Many factors focus mainly on your customer; ask which ID they accept before you send documents.
• Large customers that pay in 60 or 90 days, like builders, supermarket chains, hospitals or government agencies.
• Fast growth: you land a bigger contract and need to cover payroll and materials before you get paid.
• SBA rules: since March 1, 2026, 7(a) and 504 loans require every owner to be a U.S. citizen or national, which shuts out green card holders and ITIN owners.

If you want to understand the product step by step before comparing, read our guide to invoice factoring for Latino-owned businesses.

What to compare in a factoring contract

Before you sign, compare these clauses one by one. They change what you actually receive more than anything else:

• Recourse or non-recourse. With recourse, if your customer doesn't pay, you return the money or swap in another invoice. With non-recourse, the factor takes on certain nonpayment risks, but usually only if the customer goes bankrupt or can't pay; a dispute over poor work almost always stays your problem. We break it down in recourse vs. non-recourse factoring.
• Advance and reserve. Some factors advance almost everything; others advance part and hold the rest in reserve until your customer pays. Ask how much lands in your account on day one.
• How the fee is charged. It can be a flat fee per invoice or a charge that grows every week or month your customer takes to pay. With slow customers, the second kind weighs much more.
• Minimum volume and contract length. Some contracts require you to sell a set amount every month, or run a full year with a penalty if you leave early. Single-invoice factoring avoids that.
• Extra fees. Check for setup fees, wire fees, per-customer credit check fees or account closing fees.
• Customer notification. In almost all factoring, your customer is told to pay the factor. If that makes you uneasy with a key customer, consider working capital instead.

Ask the factor to walk you through the contract in Spanish if that's easier for you. If they can't, take it to someone you trust who reads legal English.

Which to choose for your type of business

• Construction subcontractor (drywall, painting, roofing, concrete): your invoices carry retainage and progress billing. Look for a factor that knows construction and accepts progress invoices; many general factors won't take them. Compare with our list of the best invoice factoring companies.
• Carrier or owner-operator: trucking factors often pay same-day or next-day and accept your rate confirmations and proof of delivery. Compare their fee with a general factor's.
• Commercial cleaning or maintenance: monthly invoices to offices or buildings that pay in 30 or 45 days. A recourse factor is usually enough, because your customers pay steadily.
• Food or Latino product distributor: you sell to supermarkets and restaurants on terms. If the customer is a large chain, non-recourse or single-invoice factoring makes sense.
• Staffing agency: you run payroll every week and collect monthly. You need a factor that funds quickly and consistently.
• Consumer-facing business (restaurant, salon, retail store): factoring rarely applies because you don't have invoices to collect. Your fit is working capital based on sales.

How to get ready, and mistakes to avoid

1. List your open invoices: customer, amount, date and days past due. That's your accounts receivable aging report, and every factor will ask for it.
2. Keep your contracts and purchase orders handy. They prove the work exists and who owes you.
3. Register your business as an LLC or with a DBA and get an EIN. The invoice has to be issued in a business's name.
4. Check for liens on your receivables. If you already signed with another funder, it may have a claim on them.
5. ID documents: current ID and your SSN or ITIN, depending on what each factor accepts.
6. Business bank statements for 3 to 6 months, especially if you're also comparing working capital.

Costly mistakes: selling all your invoices when you're only short for one; signing a one-year contract without reading the exit penalty; pledging invoices that are already tied to another funder; and believing promises of sure approval. No serious company approves you without looking at your customers.

This isn't immigration advice. If you have questions about your personal situation, talk to an immigration attorney. Once your bank statements are ready and you'd rather not sell invoices, you can apply with Merchant Fund Express; it's free and doesn't affect your credit.