Up to 90%
of Invoice Value
From 1%/mo
Fee
24 – 48 hr
Time to Fund
Ongoing
Facility
Factoring vs. invoice financing, and which one fits.
Factoring and invoice financing pull the same cash forward, but the mechanics differ. In factoring, the lender buys the invoice at a small discount and collects directly from your customer. It is simpler, cheaper at the margins, and visible to the customer. In invoice financing, you borrow against the invoice and continue to collect yourself. The lender stays behind the scenes. You pick based on whether you want the customer to know a third party is involved and how much reporting burden you want to carry.
Approval hinges on your customers, not you. The lender is looking at who owes the money, whether they pay on time, and how big the book is. That flips the usual script: businesses with thin personal credit or a short operating history can still get funded if their customer list is solid. Dilution rates, concentration limits, and aging buckets all shape the advance rate and the fee.
Eligibility what we typically look for
- B2B invoices to creditworthy customers
- Monthly invoicing volume of $10K or more
- Clean collection history on the receivables you want to finance
- Business bank account in good standing
Why founders pick this
Key benefits
- Cash lands in your account in 24 to 48 hours, not 60 days
- Underwriting looks at your customers' credit, which is usually stronger than yours
- Facility grows alongside your invoicing volume, automatically
- True-sale factoring keeps the debt off your balance sheet
Things people ask before applying.
Factoring sells the invoice. The lender owns it and collects from your customer directly, usually under their own name. Invoice financing is a loan secured by the invoice. You keep collecting, and the lender recovers from you. Factoring is cheaper and simpler. Invoice financing is more discreet and lets you control the customer relationship.
In standard notification factoring, yes, because the payment instructions change. In non-notification factoring and in invoice financing, no. Your underwriter matches you to the structure that fits your customer relationships.
Fees typically run 1 to 5 percent per month of the invoice value, driven by three things: how creditworthy your customers are, how long the invoices take to pay, and how much total volume you run through the facility. Higher volume and stronger customers compress the fee.
Depends on the deal. Recourse factoring means you buy the invoice back if it goes unpaid past a threshold. Non-recourse factoring means the lender takes the loss on a genuine credit default, but not on disputes. Your underwriter will spell out which structure fits your risk tolerance and your margin.
Often stacked with this one.
Business Line of Credit
A revolving credit facility sized to your business. Draw when you need capital, repay on your schedule, and pay interest only on the portion you carry.
Read the brief →Asset Based Lending
Revolving capital backed by your receivables, inventory, and equipment. Built for asset-heavy operators and companies in transition, where cash-flow lenders will not move.
Read the brief →Short Term Business Loans
Capital in hand inside 72 hours when the rate is not the point and the clock is. Three to eighteen month terms, daily or weekly repayment, real approval criteria.
Read the brief →Ready to apply for accounts receivable financing?
One application puts every product on the table your underwriter handles the rest.
Soft credit pull. No hard inquiry unless you accept terms.