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Invoice Factoring

Convert outstanding invoices into working capital instead of waiting on customer payment terms.

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Typical terms - illustrative
Amount Range
Based on invoice value
Term Length
Short-term, tied to invoice due date
Repayment
One-time, upon collection
Multiple Funding Programs
Nationwide Financing
Fast Decisions
Dedicated Funding Specialists

What is Invoice Factoring?

Invoice factoring lets you convert unpaid customer invoices into immediate working capital, rather than waiting the typical 30, 60, or 90 days for customers to pay.

Invoices and paperwork on an office desk

How it works

From application to funding, in 4 steps.

01

Submit Invoices

Share your outstanding customer invoices with your matched factoring partner.

02

Get an Advance

Receive a large portion of the invoice value upfront.

03

Customer Pays

Your customer pays the invoice on their normal terms.

04

Receive the Balance

Get the remaining balance, minus the factoring fee.

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Who it's for

Invoice factoring suits businesses that invoice other businesses and experience cash flow gaps while waiting on customer payment, rather than businesses with limited or no outstanding invoices.

Common Uses
Bridging cash flow gaps from slow-paying customers Covering payroll while awaiting invoice payment Taking on new orders without waiting on existing receivables

Benefits

No Waiting on Terms

Access cash tied up in unpaid invoices immediately.

Based on Customer Credit

Approval often weighs your customers' creditworthiness too.

Frees Up Time

Less time spent chasing collections.

Qualification & required documents

Because factoring is based on your invoices, commonly requested items include:

Your funding specialist will confirm the full requirements for your matched program.

Typically Required
Government-issued ID
Outstanding invoices and accounts receivable details
Information about your customers

Example scenarios

A few ways businesses put Invoice Factoring to work.

Slow-Paying Customer

Getting cash now instead of waiting 30-90 days.

Taking on a New Order

Funding new work without waiting on existing receivables.

Payroll Gap

Covering payroll while invoices are still outstanding.

How it compares

A starting point - your funding specialist will confirm what fits your business.

Compared To Key Difference
Invoice Factoring vs. Line of Credit: Factoring is tied directly to your outstanding invoices and their value, while a line of credit is a broader pool of credit based on your overall business profile.

Frequently asked questions

In most factoring arrangements, the factoring partner collects payment directly from your customer, so your customers are typically aware. Your funding specialist can explain how this works for your matched program.
This varies by program and factoring partner. Your funding specialist will confirm the specific terms once you are matched.
This depends on the specific program. Ask your funding specialist about the flexibility available in your matched option.

Ready to explore Invoice Factoring?

One application, matched to funding options across our lending network.