Invoice Factoring

Instant cash for your invoices.

  • Up to 90% advance rate
  • Funding as fast as 24 hours.
  • Great for Startups

What is Invoice Factoring?

Turns your invoices into instant cash –  Under our Invoice Factoring program for small business, you can sell your unpaid invoices for immediate cash at a discount.

Immediate access to your own money – It’s a form of alternative financing that empowers you to unlock your working capital tied up in unpaid invoices for 30/60/90 days and turn them into ready cash.

Access to unlimited working capital: As long as your customers keep paying per terms and the factor keeps getting paid, the cycle can continue, and you will have access to cash for as long as you choose to factor your invoices.

How does Invoice Factoring work?

You sell outstanding invoices for cash – assume you sell outstanding invoices to a factoring company. The factoring company conducts its due diligence, and being satisfied with the customer’s creditworthiness, advances you up to 90% of the invoice value. 

Customer remits payment to factor – The customer is instructed to remit payment to the factoring company directly, usually to a lockbox, not to you.

Cost of factoring – When the factoring company receives payment on an invoice, it remits the remaining 10% less a factoring fee of say 3% to you. While you receive 97% of the original invoice value, you receive it now as opposed to 30/60/90 days later, providing much needed cash to meet your commitments and run your operations smoothly.

You may choose recourse factoring where you sell your invoices but retain the credit risk, or non-recourse factoring, where the factor assumes the credit risk


How can Invoice Factoring help Small Business?

Instant cash for opportunities/emergencies: Factoring can provide instant cash to hire people, pursue opportunities, grow your business with the financial stability to weather any bumps along the way.

Helps streamline credit and collections:  When you factor invoices your factor becomes your credit manager and accounts receivable department. Instead of spending time and resources collecting from your customers you can now focus on what you do best – grow your business.

Which businesses are a good fit for Invoice Factoring?

B2B and B2G Business – Invoice factoring for small business with slow-paying customers, is an ideal option. Factoring works great for business-to-business (B2B) and business-to-government (B2G) entities selling to customers with good credit who take too long to pay.

Startups and Small Businesses with Poor Credit – As factoring does not rely on your credit rating nor requires a collateral, it can provide quick and easy access to cash, particularly for startups and businesses with impaired credit history.


Key Benefits of Invoice Factoring

Frees up cash for working capital – Get cash now, when you need it.

Lifeline for businesses with poor credit – It’s based on your customers’ credit, not yours.

Funding scales with your growth – As your sales grow so does your funding.

You control your funding – You choose when, how many and which invoices to factor.

Streamlines Accounting – Great way to outsource Accounts Receivable to the experts.

Mitigates bad debts – Ideal for businesses that lack of in-house credit and collection expertise.


Qualification Criteria

  • 6+ months in business.
  • $10,000 in monthly revenues.
  • B2B or B2G business
  • Your business is based in the United States

What you'll need to apply?

  • Application
  • Last 4 months bank statements
  • Current Account Aging Report
  • List of customers you’d like to Factor
  • Articles of Organization or DBA Filing

Our 3 Step Funding Process.

Schedule a Consultation

Simply click the link below to schedule your free discovery session now.

Review Your Options

Review options with your funding advisor and choose one that best fits your needs.

Receive Your Funds

Once your application is approved, receive funds as soon as the next business day.

Ready to grow your business?

Get approved today and get access to your money within as little as 24 hours. Prequalify with no impact to your credit!