Business Capital
Invoice Factoring
Turn your outstanding invoices into immediate cash. Get up to 90% of your invoice value upfront while your customers pay on their normal terms. No debt, no collateral required.
What is Invoice Factoring?
Invoice factoring is a financing solution where you sell your outstanding invoices to a factoring company in exchange for immediate cash. The factoring company then collects payment from your customers when the invoices are due.
This is not a loan - you're selling an asset (your accounts receivable) for cash. It's ideal for businesses with long payment cycles or those that need immediate working capital to grow.
Key Benefits
How Invoice Factoring Works
Submit Invoices
Send your outstanding invoices to the factoring company for review
Get Cash Advance
Receive up to 90% of your invoice value within 24-48 hours
Customer Pays
Your customers pay the factoring company when invoices are due
Receive Balance
Get the remaining balance minus factoring fees
Types of Invoice Factoring
Recourse Factoring
You remain responsible if your customer doesn't pay. Lower fees but higher risk for your business.
Non-Recourse Factoring
The factoring company assumes the risk of non-payment. Higher fees but protection against bad debt.
Spot Factoring
Factor individual invoices as needed. Flexible option for occasional cash flow needs.
Full-Service Factoring
The factoring company handles all aspects of collections and customer communication.
Typical Terms
Invoice Factoring is Ideal For
Manufacturing
Companies with long production cycles and extended payment terms
Transportation
Trucking companies and logistics providers with delayed payments
Construction
Contractors and construction companies with project-based billing
Healthcare
Medical practices and healthcare providers with insurance delays
Wholesale
Distributors and wholesalers with large order volumes
Growing Businesses
Companies experiencing rapid growth and cash flow challenges
Factoring Requirements
Creditworthy Customers
Your customers' credit matters more than yours
B2B Invoices
Must be business-to-business transactions
No Contested Invoices
Invoices must be undisputed and collectible
Minimum Volume
Most require $10K+ monthly invoice volume
Invoice Factoring Requirements
Invoice factoring has different requirements than traditional loans. The focus is on your customers' creditworthiness and the quality of your invoices rather than your business's financial history.
This makes factoring an excellent option for newer businesses or those with less-than-perfect credit, as long as you have reliable customers who pay their bills.
Ready to Factor Your Invoices?
Turn your outstanding invoices into immediate cash flow. Connect with factoring companies and get the funding your business needs.