Flexible Payments
Invoice Factoring & Accounts Receivable Financing — $25K to $2M
Turn unpaid invoices into immediate working capital. Get 70-90% of invoice value upfront with flexible revenue-based payments — no fixed monthly bills. Perfect for seasonal and growing businesses.
How Invoice Factoring Works
Invoice factoring turns your unpaid accounts receivable into cash you can use now. Instead of waiting 30 to 90 days for customers to pay, you sell eligible invoices to a financing partner and receive most of the value upfront, with the balance released after your customer settles the invoice. Because approval leans on the credit quality of your customers rather than your own credit history, factoring is a strong fit for B2B companies, staffing firms, and growing or seasonal businesses that bill other businesses.
Factoring is a form of asset-based lending focused specifically on receivables, and it pairs well with broader working capital solutions when your needs extend beyond invoices. Advance rates and fees vary by provider and by your customers' payment patterns, so terms are tailored to each business. Explore related business capital options to find the right match for your cash-flow cycle.
2-10% of Revenue
Flexible payment rates
Scales with Growth
Payments adjust to revenue
$25K - $2M
Funding amounts
How Factoring-Based Financing Works
1
Apply & Get Approved
Quick application based on your outstanding invoices or receivables
2
Receive Advance on Invoices
Get immediate cash based on a percentage of your approved invoices
3
Customers Pay Their Invoices
Your customers pay the factored invoices according to normal terms
4
Settle Remaining Balance
You receive the remaining funds after fees once invoices are collected
Benefits of Factoring-Based Financing
- Payments adjust to business performance
- No fixed monthly payments
- Perfect for seasonal businesses
- No personal guarantees required
Factoring-Based Financing Example
Funding Terms
Funding Amount:$200,000
Revenue Share:6%
Cap Amount:$280,000
Monthly Payment Examples
Monthly Revenue: $50,000
Good month
$3,000
6% payment
Monthly Revenue: $30,000
Slower month
$1,800
6% payment
Ideal For:
- • SaaS and subscription businesses
- • E-commerce companies
- • Seasonal businesses
- • Fast-growing startups
Explore Related Financing Options
Compare financing options to find the best fit for your business needs
$100K–$25M
Asset-Based Lending
Loans secured by inventory, accounts receivable, equipment, or other business assets.
Learn more$5K–$5M
Working Capital Loans
Short-term funding for day-to-day operations, payroll, inventory, and cash flow gaps.
Learn more$10K–$5M
Business Lines of Credit
Revolving credit lines for flexible, on-demand access to business funding.
Learn more$25K–$5M
Term Loans
Fixed-amount business loans with predictable monthly payments over set terms.
Learn moreFAQ
Frequently Asked Questions
Factoring-based financing is a type of asset-based lending where you sell your unpaid invoices (accounts receivable) to a finance partner at a discount in exchange for immediate cash. Instead of waiting 30–90+ days for customers to pay, you receive most of the invoice value upfront and the factor is repaid from your customers’ payments.
You submit eligible customer invoices to a factoring company, which advances you a percentage of the invoice value (often 70–90%) within days. When your customer pays the invoice, the factor collects the payment, deducts its fee, and sends you the remaining balance. This turns your outstanding receivables into working capital without taking on a traditional loan.
Key benefits include faster access to cash tied up in invoices, improved cash flow without waiting for customers to pay, no additional debt on your balance sheet, flexible funding that grows with your sales, and potential relief from collections and back-office work on factored invoices.
Businesses that invoice other businesses or government entities, have consistent monthly revenue of $10,000+ and at least 6 months in operation typically qualify. Approval focuses more on the credit quality and payment history of your customers than on your personal credit.
Funding amounts range from $25,000 to $2 million, generally based on the total value of your eligible accounts receivable. The exact amount depends on your invoice volume, customer credit quality, and overall business health.
Factoring is one of the faster financing options because approval is based on your invoices rather than lengthy underwriting. Once your account is set up, advances on submitted invoices often arrive within a few days. Having organized invoices and customer details ready up front helps you access cash as quickly as possible.
Factoring converts your unpaid invoices into immediate cash and is repaid as your customers pay, with no fixed monthly bills. A line of credit gives you revolving access to funds you draw and repay on a schedule. Factoring suits B2B companies waiting on receivables, while a line of credit fits ongoing, flexible needs not tied to specific invoices.
Often yes. Factoring approval focuses on the credit quality and payment history of your customers rather than your personal credit, so startups and owners with weaker credit can still qualify if they invoice creditworthy businesses or government entities. Steady monthly revenue and reliable customers strengthen your approval and improve your advance terms.
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