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Invoice Factoring LoansFast Business Capital

Don't wait 30, 60, or 90 days for your customers to pay. Turn outstanding invoices into working capital within 24-48 hours — no debt, no equity, no long-term contracts.

Get Your Rate TodayHow It Works
24h
First Funding
95%
Advance Rate
$5M
Max Facility
No Credit Score Required
No Long-Term Contracts
$10K – $5M Facilities
Funded in 24-48 Hours
US-Based Advisors
What is invoice factoring — accounts receivable financing explained
70-95%
Advance on Invoice Value

What is Invoice Factoring?

Invoice factoring — also called accounts receivable financing — lets your business sell its unpaid invoices to a factoring company for immediate cash. Instead of waiting weeks or months for customer payment, you receive an advance of 70-95% of the invoice value right away.

The factoring company then collects directly from your customer. Once paid, you receive the remaining balance minus a small factoring fee (typically 1-5% of the invoice value).

Invoice Factoring vs. Traditional Loans
  • +No collateral required beyond the invoices themselves
  • +Qualification based on your customers' creditworthiness, not yours
  • +Scales with your business — more invoices, more capital
  • +Not a loan — does not appear as debt on your balance sheet

How Invoice Factoring Works

Three simple steps from application to funded. Most businesses receive their first advance within one business day of approval.

1

Apply Online

Complete our simple online application in minutes. Share basic information about your business and the invoices you want to factor. No lengthy paperwork, no financial statement requirements for most applications.

Takes 5-10 minutes
2

Submit Invoices

Once approved, submit the invoices you want to factor through our secure portal. We verify the invoices with your customers (a process called verification or NOA filing) and confirm the amounts owed.

Approval in 24 hours
3

Get Funded

Receive 70-95% of the invoice value directly to your bank account — typically same-day or next business day after approval. When your customer pays, we send you the remaining balance minus our factoring fee.

Cash in 24-48 hours
Invoice factoring process — how accounts receivable financing works

Ready to Get Funded?

Join thousands of businesses that use invoice factoring to maintain steady cash flow and fuel growth.

Start Your Application

Why Invoice Factoring vs. Traditional Loans

For businesses with strong customers but cash flow gaps, factoring often outperforms traditional bank financing.

Traditional Bank Loan
Approval Time2-8 weeks
RequiresStrong personal credit + collateral
Debt on Balance SheetYes — increases liability
Scales With RevenueNo — fixed loan amount
Credit CheckPersonal & business credit required
RepaymentMonthly payments with interest
Invoice Factoring
Approval Time24-48 hours
RequiresCreditworthy customers with invoices
Debt on Balance SheetNo — sells assets, not borrowing
Scales With RevenueYes — grows as your invoices grow
Credit CheckCustomer credit, not yours
RepaymentNo repayment — customer pays factor

Types of Invoice Factoring

Choose the factoring structure that fits your business model, customer relationships, and risk tolerance.

Most Common

Recourse Factoring

Your business retains responsibility if a customer does not pay the invoice. In exchange, you receive lower factoring fees (typically 1-3%). Best for businesses with reliable, creditworthy customers.

  • • Lower fees (1-3%)
  • • Higher advance rates
  • • You absorb credit risk
Maximum Protection

Non-Recourse Factoring

The factoring company assumes the credit risk if a customer fails to pay due to insolvency or bankruptcy. Your business is protected from customer defaults, though fees are higher (2-5%).

  • • Factor absorbs credit risk
  • • Protection from bankruptcies
  • • Higher fees (2-5%)
No Contract

Spot Factoring

Factor a single invoice or batch of invoices without committing to an ongoing relationship. Ideal for businesses that have an occasional cash flow need but don't want a long-term factoring facility.

  • • No long-term contract
  • • Use only when needed
  • • Higher per-invoice fees

Industries We Serve

Invoice factoring works for any B2B business that invoices commercial or government customers and needs to bridge the payment gap. We specialize in industries where payment terms of 30, 60, or 90 days are standard.

Trucking & Freight
Staffing Agencies
Manufacturing
Construction
Government Contractors
Healthcare & Medical
Oil & Gas Services
IT & Tech Services
Wholesale Distribution
Professional Services
Import & Export
Agriculture
Industries served by invoice factoring — trucking, staffing, manufacturing
1-5%
Typical Factoring Fee
Per Invoice
70-95%
Advance Rate
Of Invoice Value
$10K+
Minimum Facility
Up to $5 Million
24hr
To First Funding
After Approval

Frequently Asked Questions

Everything you need to know about invoice factoring loans and accounts receivable financing.

What is an invoice factoring loan?

An invoice factoring loan — more accurately called invoice factoring or accounts receivable financing — is a financial arrangement where your business sells outstanding invoices to a factoring company for immediate cash. You receive 70-95% of the invoice value upfront, and the factor collects from your customer. It is not technically a loan because you are selling an asset (your receivables), not borrowing against them.

Do I need good credit to qualify for invoice factoring?

No. Invoice factoring approval is based primarily on the creditworthiness of your customers, not your own credit score. If you have invoices owed by creditworthy businesses or government entities, you can typically qualify — even if your business has poor credit, limited history, or has been through financial difficulty.

How quickly can I get funded?

Most businesses receive their first advance within 24-48 hours of approval. The initial setup (reviewing your business, verifying customers, filing a UCC lien) takes the most time. After that, subsequent invoices are typically funded same-day or next business day once submitted and verified.

What is the difference between recourse and non-recourse factoring?

With recourse factoring, you buy back the invoice if your customer doesn't pay — you retain the credit risk. With non-recourse factoring, the factoring company absorbs the loss if your customer becomes insolvent or files for bankruptcy. Non-recourse factoring carries higher fees because the factor takes on more risk. Most factoring arrangements in the US are recourse.

Will my customers know I am using a factoring company?

In most factoring arrangements, yes. The factoring company files a UCC lien and sends a notice of assignment (NOA) to your customers, instructing them to remit payment directly to the factor. Some specialized programs offer confidential or non-notification factoring, but these are less common. Many businesses find that customers accept factoring without issue — it is a normal business practice.

What size invoices can I factor?

Requirements vary by factoring company. Some factors have minimum invoice sizes of $500-$1,000, while others have minimum monthly volumes of $10,000-$50,000. Spot factoring programs may accept single invoices of any size. Invoice factoring facilities typically range from $10,000 to $5,000,000 or more.

Are there long-term contracts?

It depends on the program. Traditional factoring facilities often require a 6-12 month contract with monthly minimum volumes. Spot factoring programs have no contract — you factor invoices as needed. We offer both options depending on your business needs and volume. We will always explain contract terms clearly before you commit.

What industries do you work with?

We work with most B2B industries including trucking and freight, staffing agencies, manufacturing, construction, government contractors, healthcare, oil and gas services, IT and technology companies, wholesale distributors, and professional services firms. The key requirement is that you invoice other businesses or government entities on net terms.

How does invoice factoring affect my customer relationships?

In most cases, the impact is minimal. Your customers receive a notification that payments should be directed to the factoring company, and collections are handled professionally. Many large companies routinely interact with factoring companies on behalf of their suppliers. The factoring company has a vested interest in maintaining good relationships with your customers.

What documents do I need to apply?

The application process typically requires basic business information, recent accounts receivable aging reports, copies of invoices you want to factor, and basic customer information. Unlike bank loans, factoring does not generally require tax returns, financial statements, or business plans — though some larger facilities may request additional documentation.

Get Your Factoring Rate

Tell us about your business and invoices. A funding advisor will contact you within one business day with a personalized quote — no obligation, no credit check required to get a rate.

Speak to an Advisor
Call us at 1-800-555-0100
Response Time
Within 1 business day, usually faster
Invoice factoring funding advisor — business financing consultation

Request a Free Rate Quote

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