Overview
altLINE is the accounts receivable financing division of The Southern Bank Company, a state-chartered community bank in Gadsden, Alabama. The FDIC's institution records list the bank under certificate number 29731, established on June 1, 1936, with its main office at 221 South 6th Street in Gadsden. altLINE's own About page tells the same story: the bank built altLINE after seeing steady demand from local businesses for credit that traditional bank lines could not serve, and it now runs the division as a national specialty lender under the community bank's charter.
The division operates from Birmingham. Its Better Business Bureau profile lists an office at 2151 Highland Avenue South and records a local start date of October 30, 2015, which is the best public marker we found for when altLINE itself began. The same profile shows an A+ rating, BBB accreditation since October 2017 and 1 complaint in the last three years.
The bank connection is the main thing that sets altLINE apart. Most factors are independent finance companies that borrow the money they advance, often from a bank, and add their own margin. altLINE's argument is that, as a division of an FDIC-insured bank, it funds directly and can pass the savings on. That is a plausible structural advantage, and bank oversight is a genuine comfort for owners worried about fly-by-night factors. Keep its scale in perspective, though. The same FDIC record shows total assets of about $133 million at June 30, 2026, which makes The Southern Bank a small community bank. The factoring program is a specialty line, not the arm of a national bank.
altLINE also contradicts itself on volume. Its homepage claims more than $2 billion in factored invoices, while its About page says more than $1 billion. Both may be true at different dates, but it is a sign that some marketing copy has not been updated.
Rates, advances and fees
altLINE publishes more of its pricing than most factors we review, which is to its credit. Its invoice factoring page says clients receive 80% to 90% of the invoice value within 24 hours and that the factoring fee is typically 1% to 5%. The rest of the invoice, less the fee, is released after the customer pays.
Its rates explainer goes further and sets out a comparison table of its own fees. On that table, altLINE lists an origination fee of $150 to $500, ACH fees of $0 to $3, and no charge for lockboxes, monthly portal access, credit approvals, same-day funding, float days or renewals. The text adds that it charges $15 to $30 per wire and that it will occasionally charge up to 1% of the credit line as the setup fee instead of a flat amount. Helpfully, it says that setup fee is only charged after you have been funded, so you do not pay to apply and then get turned down.
Pricing is driven by how long invoices stay open, the credit quality of your customers, how concentrated your receivables are in a few customers and how much you factor. The same explainer walks through a tiered example in which the fee starts at 1.5% for the first 30 days and rises by 0.5% for each further 10 days, reaching 4.5% by 81 to 90 days. That is presented as an illustration, not a quote. If you are offered a tiered structure, run your slowest customer through it before you sign; a customer that pays in 75 days can cost more than double one that pays in 25.
Freight is priced differently. altLINE's freight factoring guide says carriers can expect to pay 0.90% to 3.50% of the invoice in factoring fees with altLINE, and that carrier advances typically run 99% to 100%. The guide adds that altLINE does not charge for debtor credit checks, invoice processing or portal access.
There is one inconsistency to raise with a sales rep. The rates table lists no renewal fee for altLINE, but the freight guide says you should expect a factoring fee, an origination fee, an early termination fee and a renewal fee "in every contract, regardless of your provider". Ask altLINE whether its agreements carry an early termination fee or a renewal fee before you sign. Our guide to hidden factoring fees covers the other questions worth asking.
Contract terms
This is the weakest part of altLINE's public information. We could not find a stated contract length, notice period or termination fee for its general invoice factoring. Its freight guide describes 6 to 12 months as a standard freight contract in the industry and warns readers about auto-renewal windows and early termination fees, but it does not say that these are altLINE's own terms.
Whether you must factor your whole ledger is also unclear. altLINE's rates page says pricing depends partly on whether you finance all invoices or only selected ones, which suggests both are possible, and the freight guide says whether you factor everything largely depends on whether you meet a monthly funding minimum. Neither page states altLINE's own minimum.
Recourse is similarly vague. altLINE publishes a long explainer on recourse and non-recourse factoring, quotes its own staff on the limits of non-recourse protection, and uses a worked example in which a carrier factors with altLINE on a recourse basis. It never states which options altLINE itself offers. Its operations manager makes a fair point in that article: non-recourse contracts usually protect you only when a customer goes bankrupt, not when it disputes an invoice. Ask for altLINE's recourse terms in writing, and see our guide to recourse vs non-recourse factoring and to reading a factoring contract.
Funding speed and service
altLINE says advances arrive within 24 hours once an invoice is submitted. Its freight guide likewise says factored freight invoices are typically paid within 24 hours. It lists no same-day funding fee, which is unusual, but it does not promise same-day funding either, so we have not marked it as a same-day factor.
Applying involves the usual paperwork. altLINE's invoice factoring page says most factors ask for unpaid invoices, customers with strong payment histories, an application, an accounts receivable aging report, a business bank account, a tax ID and personal identification, so expect a similar list. Approval rests mostly on your customers' credit, and the company says there is no minimum credit requirement for the business itself. It also says its programs do not require an established operating history, which opens the door to companies in their first year.
On service, the strongest signals are the BBB record and the bank charter. One complaint in three years is a very low count. Client testimonials on altLINE's site come mostly from staffing and trucking firms, and several praise the credit checks altLINE runs on prospective customers before a client takes on new work.
Who it's for
altLINE suits B2B companies in staffing, distribution, manufacturing, consulting and other professional services, janitorial services, oil and gas, apparel and trucking that want a bank-backed factor with transparent fee ranges. Its homepage lists those industries among the ones it serves. It is a reasonable choice for younger businesses, since it says it does not require operating history or a minimum credit score for the owner.
It is less clear-cut for owners who need specific contract guarantees up front, such as a month-to-month agreement or non-recourse cover. altLINE does not publish those terms, so you will need to negotiate them and get them in writing.
Pros and cons
Pros
- Division of an FDIC-insured community bank chartered in 1936
- Published ranges: 80% to 90% advances and fees typically 1% to 5%
- Freight fees published at 0.90% to 3.50%
- No charge for credit approvals, portal access, lockboxes or float days, per its own fee table
- Setup fee charged only after you are funded
- Funding within 24 hours
- A+ BBB rating with 1 complaint in three years
- No operating-history requirement
Cons
- No published contract length, notice period or termination fee
- Does not say whether it offers recourse, non-recourse or both
- Setup fee of $150 to $500, sometimes up to 1% of the line
- Wire fees of $15 to $30
- Fees can rise in tiers as invoices age
- Some site copy is inconsistent, including total volume and renewal fees
How it compares
Among general business factors, altLINE is most similar in scale and audience to Porter Capital, which is an independent Alabama factor that states it offers both recourse and non-recourse factoring. Riviera Finance, which publishes its non-recourse cover, is the comparison for owners who want credit protection spelled out. Owners who want a fully online, pick-your-invoice product with a flat fee should also look at FundThrough. The bank charter is altLINE's distinguishing feature against all three. Use our calculator to test a quoted fee against your margins.
Frequently asked questions
Is altLINE a bank?
altLINE is a division of The Southern Bank Company, a community bank in Gadsden, Alabama that the FDIC lists as established in 1936. It funds factoring directly from the bank rather than through an outside lender.
How much does altLINE charge?
Its site says fees typically run 1% to 5% of the invoice for general factoring and 0.90% to 3.50% for freight. It also lists a $150 to $500 setup fee and $15 to $30 per wire.
How much does altLINE advance?
80% to 90% of the invoice value on general invoices, according to its invoice factoring page. Its freight guide says carriers typically receive 99% to 100%.
Does altLINE require a long-term contract?
It does not publish a contract length. Ask for the term, notice period and any early termination or renewal fee in writing before you sign.
Does altLINE check my credit?
altLINE says approval is based mainly on your customers' creditworthiness and that there is no minimum credit requirement for your business. It runs credit approvals on your customers at no charge.