Slow-paying customers shouldn't strangle your growth.
Factoring advances 80–95% of your invoice value upfront, then settles when your customer pays. It's based on your customers' credit, not yours — making it ideal for fast-growing or credit-challenged businesses.
Invoice Factoring at a glance
- Loan amounts
- $10,000 – $10,000,000+ per month in invoice volume
- Term length
- Revolving; funds as invoices are issued
- Typical pricing
- Typically 1% – 4% of invoice value per 30 days
- Funding speed
- 24 hours after setup; 3 – 7 days to onboard
- Credit guidance
- Your customers' credit matters more than yours
Key Benefits
- Funding within 24 hours
- Approval based on customer credit
- Scales automatically with sales
- No long-term debt added to your books
Best Fit For
- Trucking and logistics companies
- Staffing agencies
- Manufacturers and wholesalers
- B2B service businesses with NET terms
Why use a broker instead of going to your bank?
Factor pricing and advance rates vary widely. We match you with factors specialized in your industry to maximize advance and minimize fees.
Learn more about working with a brokerHow invoice factoring compare
We broker every product on this list, so this comparison is about fit — not about steering you toward one option.
Compared with
Accounts receivable financing
In factoring you sell the invoice and the factor collects from your customer. In AR financing you borrow against receivables and keep collections in-house, so the customer relationship stays private.
Compared with
Business line of credit
A line of credit is a fixed facility based on your credit. Factoring scales automatically with sales and does not add debt to the balance sheet.
Invoice Factoring: frequently asked questions
How much does invoice factoring cost?
Typically 1% to 4% of the invoice value per 30 days, driven by your industry, monthly volume, customer credit quality, and how quickly invoices are paid.
Will my customers know I'm factoring?
With standard notification factoring, yes — payments are directed to the factor. Non-notification and AR financing options keep the arrangement confidential.
How fast can I get funded through factoring?
Once your account is set up, most invoices fund within 24 hours of submission. Initial onboarding takes three to seven business days.
What is the advance rate?
Usually 80% to 95% of the invoice face value upfront. The remainder, minus the factoring fee, is released once your customer pays.
Can I factor if my credit is bad?
Generally yes. Factors underwrite the creditworthiness of your customers, so business owners with tax liens, past bankruptcies, or thin credit can still qualify.
Do I have to factor all my invoices?
Not always. Spot factoring and selective programs let you choose specific invoices or customers, though whole-ledger programs usually price better.
More answers on the business financing FAQ and in the commercial lending glossary.
Other financing solutions
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Cover payroll, inventory, and day-to-day expenses with flexible short-term capital.
Commercial Real Estate Loans
Purchase, refinance, or build commercial properties with structures matched to your project.
Bridge Loans
Move quickly on opportunities while you arrange long-term financing.
Ready to explore invoice factoring?
A 15-minute conversation is all it takes to know if this is the right fit. No obligation.