Invoice factoring
You did the work. Factoring means you do not wait ninety days to be paid for it.
| Typical amount | Speed | Typical term | Secured by |
|---|---|---|---|
| $20,000 – $2,000,000 | Often 1–5 business days | Per invoice | The invoices |
What invoice factoring actually is
You sell outstanding invoices to a factor, who advances most of the face value immediately (commonly 80 to 90 per cent) and remits the balance, less a fee, once your customer pays.
Underwriting weighs your customer's credit more heavily than your own, which makes it available to young businesses that would not qualify for a term loan.
When it fits
- You invoice other businesses on net-30 or longer terms.
- Growth is the problem: you can win more work than your cash flow can carry.
- Your customers pay reliably, even if slowly.
- The business is too young for conventional credit but the receivables are real.
When to think twice
- It only works for B2B invoicing. Consumer-facing revenue does not factor.
- In notification factoring, your customer learns you are factoring. Some object.
- Recourse factoring leaves you liable if your customer never pays. Know which you signed.
The honest version
See what you qualify for
Four minutes, a soft credit check, and a real answer, including when a different instrument suits you better.