What is Invoice (AR) 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.
| Typical Amount | $250,000 - $100,000,000 |
| Cost | SOFR or Prime + 1-6% |
| Funding Timeline | 24-48 hours |
| Best For | Businesses with long payment terms (net-30, net-60, net-90+), B2B companies with creditworthy customers, Staffing firms, manufacturers, transporters, Companies needing immediate cash flow, Growth-stage companies |
How It Works
Invoice financing (also called factoring) turns your open B2B invoices into immediate cash to maximize growth and maintain smooth operations. This solution is ideal for companies with commercial AR to enhance cash flow and reduce credit risk. Factoring suits businesses that sell to both US-based & international commercial customers. It takes longer terms such as net-30, net-60, net-90 + and provides access to the cash trapped in those invoices on day 1!
Key Features & Benefits
Facility amounts from $250K – $100MM
Revolving lines of credit
Advance rates of 75%–95% on AR
Interest tied to SOFR or Prime + 1-6%
Factor fees from 0.25% to 1% per invoice
Not a loan; no balance sheet impact
Options for single debtor factoring
Rates & Terms
| min Amount | $250,000 |
| max Amount | $100,000,000 |
| advance Rate | 75-95% of invoice value |
| factor Fee Range | 0.25% to 1.5% per invoice |
| annualized Cost | 3-18% depending on factors |
| monthly Service Fee | $100-500 |
| funding Speed | 24-48 hours |
| interest Rate | SOFR or Prime + 1-6% |
Invoice (AR) Financing - Common Questions
Get answers to the most common questions about invoice (ar) financing
Who Qualifies?
minimum Invoice Volume: $250K+
customer Type: Established commercial companies (Fortune 500 preferred)
credit Score Required: Customer credit matters more than yours
invoice Age: Must be current invoices (net-30 to net-90)
