Invoice Factoring
Convert your outstanding invoices into immediate cash. Get up to 90% of invoice value within 24 hours.
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What is Invoice Factoring?
Invoice factoring (also called accounts receivable factoring) is a financing solution where you sell your unpaid invoices to a factoring company at a discount in exchange for immediate cash. Instead of waiting 30, 60, or 90 days for customers to pay, you get funds within 24 hours.
The factoring company advances you up to 90% of the invoice value upfront, then collects payment directly from your customer. Once the invoice is paid, you receive the remaining balance minus a small factoring fee. This is ideal for B2B businesses with long payment terms.
Pros
- Get cash within 24 hours
- No debt added to balance sheet
- No minimum credit score required
- Advance up to 90% of invoice value
- Factoring company handles collections
Cons
- Factoring fees reduce profit margins
- Customer knows you're factoring
- Only works for B2B businesses
- Customer creditworthiness matters
- May affect customer relationships
Who Should Consider Invoice Factoring?
Invoice factoring is perfect for B2B businesses with long payment terms that need immediate cash flow. It's ideal for:
- Staffing and recruiting agencies
- Freight and transportation companies
- Manufacturing businesses
- Wholesale distributors
- Professional service providers
- Government contractors
Eligibility Requirements
B2B businesses only
Must invoice other businesses or government
Advance up to 90% of invoice
Receive most of invoice value immediately
No minimum credit score
Customer creditworthiness is what matters
Funded in 24 hours
One of the fastest funding options
Rates & Terms Breakdown
| Feature | Details |
|---|---|
| Advance Rate | 70% – 90% of invoice value |
| Factoring Fee | 1% – 5% per month |
| Payment Terms | Based on customer payment (30–90 days) |
| Approval Time | 24 – 48 hours |
| Collateral | Invoices serve as collateral |
| Personal Guarantee | May be required |
| Recourse vs Non-Recourse | Both options available |
| Best For | B2B businesses with long payment terms |
Is Invoice Factoring Right for You?
If you're a B2B business waiting 30–90 days to get paid and need immediate cash flow, invoice factoring can be a lifesaver. Just be aware that your customers will know you're factoring, and fees can add up over time.
Ready to Get Started?
Turn your unpaid invoices into immediate cash within 24 hours.
Rates, Terms & Approval Disclosure: All loan amounts, interest rates, repayment terms, and funding timelines shown on this page are representative ranges only and are not guaranteed. Actual offers are determined by individual lender underwriting criteria and depend on your business revenue, credit profile, time in business, and other factors. Approval is not guaranteed. Capital Corner is a loan broker — not a direct lender — and does not make credit decisions. We connect applicants with our network of third-party lending partners who make all final lending decisions. Submitting an application does not constitute a commitment to lend, and no funds will be disbursed without a signed agreement from an approved lender. Results vary. Not all applicants will qualify for the amounts or rates advertised. This information is for general educational purposes only and does not constitute financial, legal, or tax advice.