Funding solutions
Invoice factoring
Stop waiting 30 to 90 days for customers to pay. Turn your unpaid invoices into cash, often within a day or two.
What you can use it for
Get paid now
Receive most of an invoice’s value up front instead of waiting on net-30 to net-90 terms.
Fund growth
Take on bigger orders and new customers without running short on cash.
Cover payroll and suppliers
Keep operations running smoothly while invoices are outstanding.
How it works
With invoice factoring, you sell your unpaid invoices at a small discount in exchange for immediate cash. You typically receive an advance of around 80% to 90% of the invoice value up front. When your customer pays, you receive the remaining balance minus a factoring fee. Approval depends mostly on your customers’ creditworthiness, and factoring is not a loan, so it does not add debt to your balance sheet.
Is it a good fit?
- A B2B business that invoices other businesses or government agencies
- Customers with a solid payment history
- Unpaid invoices that are not already pledged elsewhere
- Your own credit is less important than your customers’
Typical guidelines. Requirements vary by program.
Frequently asked questions
How fast can I get funded?
Once your account is set up, invoices are often funded within 24 to 48 hours.
How much will I receive up front?
Advances commonly range from about 80% to 90% of the invoice value, with the rest paid when your customer pays, minus the fee.
Is invoice factoring a loan?
No. You are selling your receivables, so it does not create new debt.
Will my customers know?
In many programs your customers send payment to the factoring company, so they are notified. Options vary by program.
Other funding options
Not all applicants qualify. Approval, amounts, rates and terms depend on review of your application. Merchant cash advances and invoice factoring are not loans.