Invoice Factoring
Turn unpaid invoices into cash today, not in 30, 60, or 90 days.
Let's turn your invoices into cash.
Two questions to start. No obligation, no credit pull.
How does invoice factoring work?
You've done the work and sent the invoice. Now you wait, often 30, 60, or even 90 days, for your customer to pay. Invoice factoring advances you most of that invoice's value immediately, in exchange for a small fee, so cash keeps moving even while payment terms don't. It's not a loan; it's an advance against money you're already owed.
Factoring is priced and structured around your customer's creditworthiness rather than yours, which is what makes it available to newer or fast-growing companies that a bank would pass on. If your customers are established, reliable payers, your own financial history matters far less than it would for a traditional loan. See which invoices qualify for factoring.
It also scales naturally with your business. As you invoice more, you can factor more, so your funding can grow with your eligible invoices, within the limits of your approved facility, rather than lagging behind your sales.
The fee is usually a small percentage of the invoice, charged for the period it remains outstanding, not a flat rate regardless of how fast your customer pays. All else equal, a customer who pays in 15 days costs less to factor than one who takes the full 60, because the fee reflects how long an invoice is outstanding. Our guide to how factoring fees work and how to compare them helps you compare providers. We review your typical payment timelines upfront so the pricing you see reflects how your actual customers behave.
Things to know before you apply.
- The fee depends on how long an invoice stays outstanding, so faster-paying customers cost less to factor.
- Your customers are typically asked to pay us on factored invoices, which is standard practice, and we handle it professionally.
- We check the creditworthiness of your customers, which also helps you judge the risk of extending payment terms to each customer.
Further reading.
- International Factoring AssociationA trade association for the factoring industry, with background on how factoring works.
How the facility is structured.
Once your facility is set up, qualifying invoices can be advanced as fast as the same day.
A sale of receivables you already own for an immediate advance, rather than a loan you repay.
Factor more as you invoice more, with funding that can grow alongside your eligible invoices within your approved limit.
We'll check the creditworthiness of your customers so you know who to extend payment terms to.
A/R line of credit, invoice factoring, and payroll funding compared.
| Feature | A/R Line of Credit | Invoice Factoring | Payroll Funding |
|---|---|---|---|
| What it is | A revolving facility tied to your receivables. | A sale of unpaid invoices for an immediate advance. | An advance against revenue you have earned but not yet billed. |
| How you use it | Draw what you need, when you need it. | Submit the invoices you want turned into cash. | Draw against hours worked, usually up to 85% of earned but unbilled revenue. |
| What it is based on | Your receivables and billings. | The creditworthiness of your customers. | Work you have performed but not yet invoiced. |
| Choose which invoices | Availability follows all your receivables. | Yes, most arrangements let you select invoices or customers. | Not invoice by invoice, since it covers work before billing. |
| Best for | Steady, recurring billings and changing cash needs. | Large or specific invoices, and customers on long payment terms. | Labor-heavy work where payroll comes due before you can bill. |
Invoice Factoring questions, answered.
Is invoice factoring a loan?
No. It is a sale of your accounts receivable at a discount for immediate cash, rather than a loan against your business. Because it is a sale rather than a loan, you are not taking on a loan to repay. How it appears in your financial statements is an accounting question, so ask your accountant.
Will my customers know I’m factoring?
Typically yes. Payment is directed to us on the factored invoices, which is standard practice. We handle it professionally, as an extension of your back office, and your day-to-day relationship with the customer stays with you.
What determines whether an invoice qualifies?
Primarily the creditworthiness of the customer who owes it. A younger company with strong, established customers can often factor invoices that a bank would never lend against directly.
How fast can I get funded?
Once a factoring facility is set up, new invoices can be funded as fast as the same day, which is considerably faster than waiting out a 30-90 day payment term.
What percentage of the invoice do I actually receive upfront?
Most of the invoice value is advanced upfront, with the remainder released, minus the fee, once your customer pays in full. The exact advance rate depends on the customer’s creditworthiness and payment history.
Can I factor invoices from just one or two customers?
Yes. Factoring is evaluated customer by customer, so you can fund invoices from your strongest-paying accounts without needing to factor your entire receivables book.
Learn more before you decide.
Industries that use invoice factoring.
- Transportation & Trucking
- Manufacturing
- Wholesale & Distribution
- Staffing & Recruiting
- Printing & Packaging
- Business & Professional Services
- Technology & IT Services
- Security Services
- Janitorial & Facility Services
- Oilfield & Energy Services
- Healthcare & Medical Staffing
- Food & Beverage
- Import & Export
- Telecommunications
- Logistics & Freight Brokerage
- Warehousing & Fulfillment
- Marketing & Advertising
- Government Contractors
Ready to fund your business?
Tell us about your company and we'll get in contact with you to discuss next steps. There is no cost or obligation to get started.