Porter Capital: Is Their Invoice Factoring Service Worth It?

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Invoicing factoring isn’t just a passing trend. It’s a way to turn stagnant accounts receivables into cash flow quickly. 

Of course, with so many agencies offering these services, it can be challenging to find one that stands out, but that’s what we think we’ve found with Porter Capital. This company has been in the industry for over 30 years and knows how to factor invoices inside out, often working with clients from some of the most problematic verticals, like manufacturing and distribution. 

Many companies rely on invoice factoring to see them through the year. If a big client doesn’t pay quickly, it can damage cash flow and make it impossible to continue running the business, which is obviously a problem. 

The good news is that factoring companies remove a lot of this risk. Instead of relying on customers to pay, you pass that responsibility onto one of these providers, like Porter Capital, and they deal with collections for you. 

Of course, these services are critical, which is why we think it is so important to explore providers, like Porter Capital, at length. If you can detect a decent offering, you can often save thousands. 

Who Is Porter Capital?

You can think of Porter Capital as a company that helps you get hold of the money you’re owed faster. Instead of sending 30-day and 60-day follow-ups, they deal with that hassle for you. 

What is nice about Porter Capital’s services is that they hardly take up any of your time. While there’s some form-filling (as there always is), most of the work goes on behind the scenes. Once you pass responsibility for the invoice over to Porter Capital and collect your payment, it is no longer your essential responsibility. 

Porter Capital is the brainchild of brothers Marc and Donald Porter from Birmingham, AL. The pair’s goal was to build working capital solutions that would actually help companies thrive long-term, provided they were profitable. Now the company offers credit lines of up to $25 million, providing working capital and using invoices as surety. 

What We Like About Porter Capital?

One of the reasons we’re writing this review is that there’s so much to like about Porter Capital. As a company, it has a deep understanding of how to operate an effective factoring organization, putting clients at ease. 

Human Account Managers

For example, one of the things we like most about Porter Capital is how it still uses human account managers. Businesses needing working capital can always talk to someone about their credit needs. 

This perk sounds like a small thing, but it is such an improvement over the automated systems that a lot of other companies in the space use. It makes the entire process of managing an account and ensuring payment so much easier when there is a real person available on the other end of the line. 

Competitive Rates

Pair this with competitive rates and you have an almost unbeatable combination. Porter Capital often charges as low as 0.4%, which is almost unheard of for many brands. It’s able to reduce costs by so much because of the way it uses invoices as collateral. Its goal is to minimize fees and take on as much of its clients’ risk as it can. 

Transparent Pricing

Added to this, Porter Capital focuses on transparent pricing. Businesses that use the service always know exactly how much it’s going to cost them. This perk is part of Porter Capital’s goal to avoid nasty surprises in industries rife with them, like logistics and distribution. 

Easy Application Process

The easy application process is another element of the customer journey that Porter Capital excels in. It makes it straightforward for businesses to get the help and support they need, without going through days of complex paperwork. 

Of course, like most factoring services, there is some administration. However, applications usually take just 60 seconds online and approval is rapid. 

Strong Customer Service

Another perk is the strong customer service, something that a lot of clients love. Porter Capital isn’t afraid to invest time in the people who use it, which is one of the reasons it has become so popular more recently. 

Decent Referral Program

Finally, we like how Porter Capital runs a reasonably lucrative referral program. Existing customers can get paid a commission for new clients, helping to grow the business. 

The Cons Of Porter Capital

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Of course, this review wouldn’t be 100% honest unless we discussed the cons of using Porter Capital. While it is an excellent service, there’s always room for improvement. 

Industry-Specific Limitations

One issue is industry-specific limitations. While Porter Capital works exceptionally well with many companies, it isn’t a brand that can easily teleport across industries. 

For example, Porter Capital can work with tech or retail companies, but those aren’t its core competency. 

Variable Fees

Factor invoicing fees can also be variable, with some as high as 5% with this provider. Usually, rates adjust to creditworthiness and are cheap for most brands, but not always. 

Other Points We’d Like To Mention

While many factoring businesses offer recourse-only factoring, Porter Capital doesn’t. Instead, it gives clients the ability to fully hand over risk so they don’t have to worry about it, with a slightly increased fee. 

We like this option because it means that businesses can simply get back to focusing on the services they offer. It takes away a lot of the mental overhead associated with knowing that a factoring business may some day come back and ask for the money. 

Final Verdict: Is Porter Capital Worth It?

Our view is that Porter Capital is one of the top invoice factoring firms out there and that most companies can benefit from using it. It provides exceptional customer support while also making the process more affordable for companies that simply want to collect their payment quickly and move on. 

The challenge is to ensure that Porter Capital aligns with the business’s needs. Some companies need different types of factoring services that operate exclusively in their sector.