• Average monthly sales or amount of invoice to factor

Invoice Factoring Expedites Business Cash Flow

Invoice factoring is a business finance tool that can provide your organization with almost immediate access to money owed by your customers, without waiting 30, 60, 90 days – or even longer – for the invoices to be paid.

Instead of waiting for your customers to pay, you can factor an invoice with a factoring company for a small fee (called a factoring fee) and receive an immediate advance – as much as 95% of the invoice amount.

Though the need for expedited or more consistent cash flow is the reason most companies decide to factor invoices, some of the other common reasons cited by our clients include:

  • Need for working capital to fuel business growth
  • Working capital can be leveraged for better terms with suppliers
  • Customer accounts with generous terms, often 30-90 days
  • Need working capital to take on larger accounts or big orders
  • Slow-paying customers
  • Better ability to meet operating expenses and payroll
  • Capital expenditures like equipment purchases, repairs, renovation or expansion

The practice of invoice factoring is centuries old and has played an important role as a means of business finance. Any organization, of any size, that provides goods or services to other businesses, government agencies or other commercial organizations on payment terms may be able to factor receivables in order to improve cash flow and unlock working capital.

We offer several different types of invoice factoring, including non-recourse factoring, non-notification factoring, factoring with recourse, spot factoring, and micro-factoring. Scroll down to read more about the different types of invoice factoring that could be used to speed up business cash flow in your organization.

Invoice Factoring – How the Process Works


Apply for invoice factoring services that are a good match to your business goals and preferences.


Go from approval to your first funding in as little as 24-48 hours — or even faster.


Get fast, competitive factoring advances on factored invoices to expedite cash flow and grow your business faster.

Invoice Factoring Calculator

Find out how much working capital you could unlock immediately by factoring invoices on the same day they are generated, instead of waiting weeks — or months — for customer payments.  Factoring fees as low as 5% (or even lower – ask about volume discounts!) and competitive advances as high as 95%, with no-to-low holdbacks.

Industries where invoice factoring is commonly used to expedite cash flow include:

  • Staffing and temporary employment agencies (security services, nursing, etc.)
  • Business consulting and B2B business services
  • Trucking, transportation and logistics
  • Supply chain distributors and manufacturers
  • 3rd party sellers like Zulily vendors and Amazon merchants
  • Vendors selling through Costco, Walmart, Overstock, Wayfair and other mass retailers
  • Textile, clothing, accessories and other wholesalers
  • Oil and gas (and all gas and oil field contractors)
  • Energy and utilities companies and contractors

And others – feel free to ask!  Nearly any type of company that invoices customers for payment or waits more than 15 days or more to get paid after completing delivery of goods or fulfillment of services might be able to improve cash flow immediately by factoring invoices. Take the first step and request a no-cost, no-obligation receivables financing proposal today.

How the Invoice Factoring Process Works

Invoices factored are typically funded on the same day – up to 95% of the face value of the invoice.

If you invoiced a customer in the amount of $4,500 but you want to access the funds without waiting weeks – or months – for your customer to pay.

Assuming a factoring fee of 5%, and an advance rate of 95%, here’s how it would work:

Day 1 – Generate a $4,500 client invoice and factor it
 – Day 2-3 Receive an advance of $4,275 (95%)
Factoring company earns $225 (5% factoring fee)
Day 30+ Factoring company waits to get paid while you stay focused on growing your business

Request more information about Invoice Financing

  • Average monthly sales or amount of invoice to factor

Get More Information about Invoice Factoring

Contact us at 855-882-6772 or fill out our online application.

What are the benefits of invoice factoring?

Businesses that want to expedite payment of accounts receivable invoices can turn to a receivables factoring company. Instead of waiting on customer payments, you can factor a customer invoice on the same day it’s generated and receive and advance of up to 95 percent of the face amount of the invoice right away.

Factoring receivables enables you to focus on growing your business rather than chasing invoices or performing collections. You can gain immediate access to working capital by speeding up cash flow, so that you can reinvest in your company much more quickly.

Factoring receivables could also be the key to positioning your business to be able to take advantage of emerging opportunities. Organizations that factor invoices expedite cash flow. They have more flexibility to meet operational expenses, extend more generous payment terms to their customers as a competitive advantage, and can reinvest working capital in their business more quickly in order to expand, service larger accounts or take on new customers.

There are also additional benefits for businesses that choose non-recourse invoice factoring over factoring with full recourse. Non-recourse factoring is less common in today’s economy because non-recourse factors assume the credit risk for the invoices they purchase. When you factor invoices with a non-recourse factoring company, you may be able to completely eliminate financial risk from bad debt.

Invoice Factoring Fees as Low as 5% – Advances Up to 95%

Low factoring fees and competitive advances are not the only reason you should apply for invoice factoring services with us. Working with us could help you get a better factoring agreement, and a better value for your money.

You want an invoice factoring company that’s going to help you go from approval to funding quickly and look for reasons to say “Yes!” when you submit invoices for factoring. We offer low factoring fees and flexible terms, such as:

  • No long term contracts
  • No monthly minimums (you choose when and how much to factor)
  • Retain control of billing your customers or let the factoring company do the work
  • Non-recourse factoring (the factoring company assume the credit risk)
  • Spot factoring and micro-factoring – small invoice factoring welcome!
  • Credit checks to help you vet customers
  • No application or due diligence fees
  • No schedule processing, notification or any other hidden fees

Even more importantly, we promise a high level of customer service to our factoring clients. We want you to work with a financing partner who understands your preferences and unique business needs, saving time and reducing the stress of managing receivables.

Non-Recourse Factoring

There are two basic types of receivables financing – non-recourse factoring and factoring with full recourse. With both types of receivables financing there are three parties directly involved:

  • An organization that invoices its customers for payment (the “client”)
  • The customer responsible for paying the invoice (the “debtor”)
  • A receivables financing company that factors the invoice (the “factor”)

Non-recourse factoring companies assume the credit risk for invoices they factor. If a customer is unable to pay due to insolvency, the non-recourse factoring company absorbs the loss, not the client.

Non-recourse factoring companies rarely mandate that clients buy back an invoice. Generally this would only occur in the case of customer dispute; such as, the customer did not receive the shipment, refused delivery or returned it. Read more about non-recourse factoring.

Factoring with Recourse

Full recourse factoring (or factoring with full recourse) leaves the client responsible for the credit worthiness of its debtors, with the factoring company retaining the right to sell an invoice back to their client if a debtor is unable to pay for any reason — even if the invoice simply goes unpaid for a short period of time.

When working with a company that factors with full recourse, the client may even still be responsible for collecting on the invoice as well as paying any legal fees the recourse factoring company accrued while they held the customer invoices.

Because the factoring client retains the financial risk from bad debt, factoring fees may be lower when factoring with full recourse (vs. non-recourse factoring). Read more about factoring with full recourse.

Non-Notification Factoring

Non-notification factoring minimizes contact between the factoring company and the factoring client’s customers, often through the use of white-labeled forms which maintain the client’s brand in customer invoices, statements and correspondence.

When the customer pays factored invoices, those payments are then addressed to a unique lock-box or paid electronically into a deposit account belonging to the factoring company, though still branded to the factoring client. For the customer, this creates a seamless experience that protects and reinforces the factoring clients brand.

Read more about non-notification invoice factoring.

Spot Factoring

Spot Factoring (aka Single Invoice Factoring) only differs from typical invoice factoring in that a business is factoring on a one-time-only basis, rather than establishing a long-term relationship with a factoring company.

Factoring fees might be higher when spot factoring, but not necessarily, since factoring rates are determined based on the credit rating of the customer being invoiced.

Read more about spot factoring, or small invoice factoring.


Micro-factoring is very similar to spot-factoring. But while spot factoring (or single invoice factoring) might involve an invoice of any amount, micro-factoring is generally factoring for small invoices, whether done as a single invoice or a series of smaller dollar amount invoices.

Very few factoring companies offer micro-factoring – or factoring for small invoices. We are pleased to not only offer but welcome micro-factoring or factoring for small invoices, as well as factoring for invoices of any amount.