Turn unpaid invoices into cash
We help business owners determine if factoring is the right tool, and structure it correctly when it is.
Why use accounts receivable factoring?
Factoring improves cash-flow timing so growing businesses can operate and scale without waiting on customer payments.
- Get predictable, reliable cash flow on a consistent schedule
- Use invoices as collateral, no real estate or equipment required
- Get cash upfront, no need to wait 30–120 days for customers to pay
- Scales with your sales; more invoices turn into more available capital
- Supports payroll, inventory, and growth without cash strain
Ideal for businesses that invoice customers on net-30 to net-90 terms but need to fund payroll, inventory, or growth today.
What is factoring?
Get an advance on your invoices without waiting for your customers to pay you.
- Advance: typically 70–90% of the invoice amount
- Timing: funding usually within 24–48 hours (5-15 days to initially set up)
- Settlement: remaining balance paid when your customer pays (minus fees, typically ~2–3%)
It is not a traditional loan:
- No fixed monthly payments
- No long-term debt added to the balance sheet
- Approval is based primarily on your customer’s credit, not just yours
Basic requirements
Factoring is straightforward, but it’s not for every business. Typical requirements include:
- B2B or B2G invoices (business or government customers, not consumer)
- Completed work or delivered product
- Creditworthy customers with a payment history
- Clear, verifiable invoices with standard payment terms
- Typically lenders prefer at least $80,000 of monthly invoices
Owner credit is considered, but customer quality matters more than personal score.
If you need funding before an invoice exists, Purchase Order Financing may be a better fit.
What can you expect?
Advance rates
- 70%–90% of approved invoice value
Pricing & fees
- Typical cost: ~2%–3% per 30 days
- Fees are based on how long your customer takes to pay
- No interest compounding
- Faster-paying customers means lower overall cost
Payment structure
- No fixed monthly payments
- Advances are repaid automatically when your customer pays
- Fees are deducted from the reserve at settlement
Contract terms
- Minimum 6 month, then month-to-month or short-term agreements available
- No long-term debt added to your balance sheet
Timeline
- Initial setup: 5–15 business days
- Ongoing funding: 24–48 hours per invoice
Credit considerations
- Approval focuses primarily on your customer’s credit
- Owner credit is reviewed, but strong customers matter more than your score
