$10K - $5M
Factoring
Sell your outstanding invoices at a discount and receive cash immediately. Stop waiting 30, 60, or 90 days for customers to pay.
Factoring
$10K - $5M
Overview
Invoice factoring converts your outstanding receivables into immediate cash. Instead of waiting 30, 60, or 90 days for customers to pay, you sell those invoices to a factoring company at a small discount and receive up to 90% of the invoice value within 24-48 hours. The factor then collects payment directly from your customers. This isn't a loan — it doesn't add debt to your balance sheet — and it scales naturally with your sales volume. The more you invoice, the more capital you can access.
Key Features
- Advances up to 90% of invoice value
- Funding within 24-48 hours
- Your customers pay the factor directly
- No long-term debt on your balance sheet
Funding Range
$10K - $5M
Category
Asset-Based Funding
Convert your business assets into the capital you need today.
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How Factoring works
Submit your invoices
Send us the outstanding invoices you want to factor. We review the invoices and verify that the customers (your account debtors) are creditworthy.
Receive an advance
Within 24-48 hours, you receive up to 90% of the total invoice value deposited directly into your business account.
The factor collects payment
The factoring company manages collection from your customers on the normal payment terms. You are free to focus on your business instead of chasing payments.
Receive the remaining balance
When your customer pays, you receive the remaining balance minus the factoring fee. The fee is typically 1-5% of the invoice value depending on volume and customer creditworthiness.
Why Choose This Product
Built for growing businesses
Immediate Cash Flow
Stop waiting on net-30, net-60, or net-90 terms. Convert invoices to cash within 24-48 hours.
Not a Loan
Factoring is an asset sale, not debt. It doesn't appear as a liability on your balance sheet.
Scales with Revenue
Your funding capacity grows with your sales volume. More invoices means more available capital.
Eligibility
Who qualifies for Factoring
- Minimum 500 credit score (your customers' creditworthiness matters more than yours)
- At least 4 months in business
- Invoices must be to creditworthy B2B or B2G customers
- Minimum $5,000 in monthly invoicing
- Industries with B2B invoicing models are ideal — staffing, trucking, manufacturing, consulting, and more
Real-World Scenarios
Common use cases
A staffing agency invoices $300K monthly to corporate clients on net-60 terms. Factoring lets them access $270K within 48 hours to cover weekly payroll without waiting on payment cycles.
A manufacturing company receives a large purchase order but needs cash immediately for raw materials. They factor their existing outstanding invoices to fund the new order.
A trucking company factors its freight invoices to cover fuel, maintenance, and driver pay between loads, keeping cash flow steady across variable payment schedules.
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Factoring vs. alternatives
Factoring differs from AR financing in a key way: with factoring, you sell your invoices and the factor collects directly from your customers. With AR financing, you borrow against your receivables but retain ownership and collection responsibility. Compared to a line of credit, factoring does not add debt to your balance sheet and scales automatically with revenue, but it involves your customers interacting with a third party. A bridge loan may be a better fit if you need a one-time lump sum rather than ongoing receivables conversion.
Frequently Asked Questions
Common questions about Factoring
Your personal credit score is less important for factoring than for other products. The primary underwriting factor is the creditworthiness of your customers — the businesses that owe you money. A minimum 500 credit score is typical, but strong customer credit can offset lower personal scores.
Once your account is set up and invoices are verified, advances typically arrive within 24-48 hours. Initial setup usually takes 3-5 business days, but subsequent invoices are processed much faster.
You will need copies of the invoices to be factored, proof of delivery or service completion, your customer contact information, and standard business identification documents.
In most cases, yes. The factoring company sends a notice of assignment and collects payment directly. However, many businesses view this as standard practice, and reputable factors handle customer interactions professionally.
Yes. Factoring is one of the more accessible products for newer businesses because qualification is based primarily on your customers' credit, not your business history. If you have verified invoices to creditworthy customers, you can qualify.
The initial application typically uses a soft inquiry, which does not affect your score. Factoring is not a loan, so it does not appear as debt on your credit report.
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