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INVOICE FACTORING

Invoice Factoring allows you to convert your business invoices to immediate cash advances.

What is Invoice Factoring?

Invoice factoring is a form of small business funding where a business sells its invoices to a factoring company in exchange for up-front funding. When the invoice is paid by the customer, the remaining balance is paid to the business owner minus a fee.

Invoice factoring allows you to receive the working capital you need to maintain operations and plan for the future, but without taking on the periodic fixed payments associated with a term loan. If slow-paying clients are stalling your cash flow, invoice factoring can help you by liquidating your outstanding accounts receivables to keep your business running.

Rather than waiting 30 to 120 days for your customers to pay you the money you need to run your business, invoice factoring provides you with funds within 24 to 48 hours.

How does Invoice Factoring work?

  1. Business sell invoices to a factoring company at a discounted rate 

  2. The factor company advances a lump sum up to 100% of the value of the invoice

  3. The factor company then collects all payments directly from the client

  4. The factor company sends the remaining balance to the business, minus any fees, which is typically an agreed-upon percentage


Loan amount from $10,000 -$1,000,000

How To Apply

Online Meeting

Prequalify Online

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Same Day Approval

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Get Funded

To get prequalified, follow the "Apply Now" button and submit some basic business information.

After your submission has been processed by the underwriting team, we will reach out to discuss the options you qualify for.

Upon approval and accepting the offer, funds are deposited directly into your business bank account so you can use the money immediately.

Qualifying Criteria 

  • 550+ credit score

  • 6+ months in business

  • $10,000+ average monthly bank deposits

  • Vary across industries

Documentation Required

  • Signed one page funding application

  • 3-5 most recent months company bank statements

  • Full credit report

  • Unpaid Customer Invoices

Invoice Factoring: Advantages and Disadvantages

This type of financing is ideal for businesses that do not receive payments for their products or services immediately but rather receive payment on their invoices in 30, 60 or 90 day terms.

Pros

  • Invoice factoring provides a safe, immediate source of cash flow by releasing working capital that is tied up in unpaid invoices.

  • Having a lender collect invoices for you can help you save time spent on administration and chasing late payments.

  • Factoring provides flexibility as amounts can expand and contract with your sales volume.

Cons

  • Invoice factoring companies will verify your invoices with clients to ensure that they are accurate. Including a third party can affect customer relationships and also means that you will have to give up some control.

  • If your client has a weak payment history or credit score, it may affect your approval.

  • Invoice factoring can reduce the scope of additional borrowing and often has higher costs than a longer-term loan.