AR · Financing
Accepting applicationsInvoice factoring — turn unpaid invoices into cash now
The cash already exists in your book. Factoring brings it forward, so Net 30 to Net 90 terms stop holding up your growth.
- Amount
- $10k – $2M
- Funded in
- 1 – 3 days once set up
- Term
- Per invoice
- Priced as
- Discount fee 1 – 4% per 30 days
- Min. trading
- 3 months trading
Illustrative ranges. Your actual amount, rate and term depend on your business and are set when you apply.
What a Invoice Factoring is
Invoice factoring turns unpaid B2B invoices into cash now. You sell your outstanding receivables at a small discount and receive most of the value immediately, instead of waiting out Net 30 to Net 90 terms.
The cash already exists in your book — factoring just brings it forward. Underwriting looks at your customers’ credit as much as your own, since they are the ones who ultimately pay, and they may be notified that the invoice has been assigned.
How it works
- 1Set up once
Share an accounts receivable aging report to establish the facility.
- 2Submit invoices
A large share of each invoice’s value is advanced within 1 to 3 days.
- 3Customer pays, you get the rest
The remaining balance, less the discount fee, is released when your customer settles.
Who it is a fit for
B2B businesses waiting on Net 30 to Net 90 terms, where the cash exists but has not arrived.
Underwriting looks at your customers’ credit as much as yours, and they may be notified of the assignment.
What you will need
The full checklist is built from your answers in the application — you are never asked for a document that does not apply to you. For a Invoice Factoring, the document that does the work is: An accounts receivable aging report. Most files are complete with around 9 documents in total.