What is Invoice Financing?
Invoice factoring (also called AR financing) is when you sell your unpaid B2B invoices to a factor for immediate cash. Instead of waiting 30-90 days for customers to pay, you get 75-95% of the invoice value within 24-48 hours. As customers pay, the borrowing automatically decreases—making it self-liquidating.
| Facility/Loan Size | Facility amounts from $250K - $100MM |
| Cost of Capital | Advance rates of 75%-95% on AR (industry-best rates) |
| Funding Timeline | Approval in 3 weeks, funding in 24-48 hours |
| Best For | Companies with strong sales but slow-paying customers (30-90 days), Growing businesses hitting bank line ceiling, Businesses with loss tax returns but solid invoices, Staffing, construction, manufacturing, healthcare, gov't contractors, Companies needing payroll covered before contract payment arrives, Seasonal businesses needing capital during slower periods, Fast-growing companies whose sales outpace traditional lender appetite |
How It Works
Invoice factoring (AR financing) unlocks cash trapped in unpaid invoices, converting them into immediate working capital. Unlike traditional term loans that sit on your balance sheet, factoring is self-liquidating: as your customers pay, the borrowing automatically decreases. This solution is ideal for companies with commercial AR facing 30-90 day payment cycles. Factoring works for staffing, construction, manufacturing, healthcare, government contracting, and CPG industries with net-30, net-60, net-90+ payment terms. Real example: A healthcare supply manufacturer secured $1MM at Prime + 2% with 92% advance rates—better terms than most bank loans—and within 3 weeks of approval. The facility automatically scaled to $1.5MM within 2 months as their sales grew.
Key Features & Benefits
Facility amounts from $250K - $100MM
Revolving lines of credit (scales with your sales)
Advance rates of 75%-95% on AR (industry-best rates)
Self-liquidating: as customers pay, debt automatically decreases
Interest tied to SOFR or Prime + 1-6%
Factor fees from 0.25% to 1% per invoice
Not a loan; no balance sheet impact
Selective factoring: choose which invoices to factor
Approval in 3 weeks, funding in 24-48 hours
Invoice Financing - Common Questions
Get answers to the most common questions about invoice financing
See It In Action
Real companies using Invoice Financing to solve their capital challenges
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