Financing / Invoice factoring
Invoice factoring
Cash now for invoices your customers will pay later. B2B companies waiting 30 to 90 days to get paid.
| Advance | Usually 80% to 90% of the invoice |
|---|---|
| Fees | Often 1% to 5% per month outstanding |
| Who pays | Your customer pays the factor |
| Time in business | Can be under 1 year |
| What matters most | Your customers' credit |
| Personal credit | Less important |
| Priced as | Discount fee |
How it works
You sell unpaid invoices to a factoring company. It advances most of the invoice value right away, collects from your customer, and sends you the remainder minus its fee.
Because approval leans on your customers paying, factoring can work for younger businesses with strong clients.
A good fit when
- You invoice other businesses or government agencies.
- Slow-paying customers are the cash-flow problem.
What to watch for
- Fees often accrue in steps, so a customer who pays late costs you more.
- Recourse factoring means you owe the factor if your customer never pays.
- Some contracts require you to factor all invoices, not just the ones you pick.
Guidelines vary by funder and change over time. Meeting them does not guarantee approval, and some funders approve outside them. We'll tell you where your business stands after we review your application.
Other options
Fuel for what's next.
One application, multiple funders, and every offer explained in plain numbers. Applying is free, and there are never upfront fees.