Overview
Invoice Factoring allows businesses to sell unpaid invoices to a factor at a discount, receiving immediate cash. This is ideal for businesses with strong products but slow customer payment terms.
Key Benefits
Immediate cash flow for pending invoices
No debt added to your balance sheet
Faster than waiting for customer payment
Improved cash management for growth
No personal guarantee typically required
Available for businesses of all sizes
Qualifications
- • Business must have business-to-business invoices
- • Customers must be creditworthy
- • Invoices typically 30+ days terms
- • Business must be in operation 6+ months
- • Monthly invoicing volume of $5,000+
- • Minimal credit score requirements
Funding Amounts
Minimum
$5,000
Typical Range
$25,000 - $500,000
Maximum
$2,000,000
Funding Timeline
Immediate funding (typically same day)
Actual timelines depend on application completeness and lender review. Faster approval may be available for well-qualified applicants.
Frequently Asked Questions
What is the typical factoring fee?
Factoring fees typically range from 1-5% of invoice value, depending on volume and customer creditworthiness.
Do my customers know I'm factoring invoices?
With recourse factoring, your customers send payment to you. With non-recourse, they send directly to the factor. You can choose.
What if a customer doesn't pay?
With recourse factoring, you're responsible. With non-recourse, the factor absorbs the loss (for a higher fee).
Ready to Explore Invoice Factoring?
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