Your customers’ credit does the borrowing, not yours.

The factor checks your customers, not you. A brand-new authority can factor on day one if the brokers are solid.

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Amount
$20,000 – $2,000,000
Term
Per invoice
Speed
Often 1–5 business days
Cost to apply
$0

What it is

You sell an outstanding invoice to a factor, which advances most of the face value straight away, commonly eighty to ninety-five percent depending on the industry, and remits the rest less a fee once your customer pays.

The underwriting is the part that surprises people: it weighs your customer’s credit far more heavily than your own. Trucking factors cheapest because freight brokers have real credit and load boards make verification a five-minute job.

When it fits

  • You invoice other businesses on net-30 or longer, to customers who pay reliably even if slowly.
  • Growth is the problem. You can win more work than your cash flow can carry, and each new job makes it worse before better.
  • The business is young. Too new for conventional credit, but the receivables are real and verifiable.
  • The customer list is strong even if your balance sheet isn’t yet.

What it is not good for

  • Business-to-business only. Consumer revenue doesn’t factor. Card receipts are a different conversation.
  • Your customer may find out. In notification factoring they’re told to pay the factor. Some object; most don’t notice.
  • Recourse means you carry the loss. If your customer never pays, you buy the invoice back. Know which you signed.

The part most sites leave out

Questions we get on this one

Can a brand-new company factor?
Yes. Time in business barely matters here, because the factor is underwriting the people who owe you money.
What is the difference between recourse and non-recourse?
Recourse means you buy the invoice back if your customer never pays. Non-recourse means the factor carries that risk, and prices for it.
Will my customers know?
In notification factoring, yes: they’re directed to pay the factor. It’s routine in trucking and construction and rarely raises an eyebrow.
Do I have to factor every invoice?
Not always. Spot and selective facilities exist, though whole-ledger arrangements price better.
How much do I get up front?
Commonly eighty to ninety-five percent of face value, with the balance less the fee on collection. Trucking sits at the top of that range.

Common in

Is this the right instrument for you?

That's the advisory question, and it needs your numbers rather than a web page. Send three to six months of statements and we'll tell you which structures your file actually supports.

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