What is Invoice Factoring?
You've done the work. The invoice is out. But your customer won't pay for 30, 60, or 90 days, and your bills can't wait that long. Invoice factoring converts those unpaid invoices into immediate cash. Sell your receivables, collect 80% to 95% of the value upfront, usually within 24 hours. When your customer pays the full invoice, you get the remainder minus a small factoring fee.
This isn't a loan and doesn't add debt to your balance sheet. Approval hinges on your customers' creditworthiness, not yours. Trucking, staffing, manufacturing, and any B2B operation where receivables stack up faster than cash comes in. If you carry invoices, this product was built for you.
How do I qualify for Invoice Factoring?
Key qualification requirements:
B2B Invoices
You must invoice businesses or government entities, not consumers.
Creditworthy Customers
Your customers' ability to pay is what matters, not your own credit.
Outstanding Receivables
Current invoices due within 90 days.
No Liens on Receivables
Invoices can't already be pledged as collateral elsewhere.
Rates and Fees
Factoring fees typically range from 1% to 5% of the invoice value per 30 days. Your rate depends on your customers' credit profiles, your industry, and the volume of invoices you factor each month. Higher volume and stronger customer credit push fees toward the low end.
There are no application fees or hidden costs. The fee is deducted from the remaining balance once your customer pays the invoice. You see the full structure before signing anything.
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