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Invoice Factoring
Turn unpaid invoices into cash now, without taking on debt.
- Immediate cash flow
- No debt incurred
- Quick access to funds
- Advance rate
- 80% – 95% of invoice
- Receivables
- $10K – $10M
- Funding time
- 1 – 3 business days
- Fee
- 1% – 4% per 30 days
Typical market ranges, not an offer of credit. Actual terms depend on lender underwriting and your business qualifications.
What it is
How this one works.
Invoice factoring converts your outstanding receivables into immediate cash. You sell unpaid invoices to a factoring company at a discount and receive most of the value within a day or two, instead of waiting thirty, sixty, or ninety days for your customer to pay. Because you are selling an asset rather than borrowing, it adds no debt to your balance sheet — and approval depends more on your customers’ credit than your own.
Best used for
- Staffing, trucking, manufacturing, and wholesale businesses
- Any company invoicing on net-30, net-60, or net-90 terms
- Growing faster than your receivables collect
- Owners who want cash without adding debt
The process
What working with us looks like.
Send your A/R aging
We review who owes you, how much, and how reliably they pay.
Set up the facility
One setup with the factor establishes your advance rate and fee structure.
Submit invoices
Send invoices as you issue them and receive the advance — typically eighty to ninety-five percent — within a day or two.
Customer pays the factor
When your customer settles the invoice, you receive the reserve balance minus the fee.
Qualifying
What you generally need.
These are typical thresholds across our lender network, not hard rules. Files that fall short in one area often still place if another is strong — which is exactly the judgment call worth a phone conversation.
- Time in business
- 3+ months
- Customers
- Businesses or government, not consumers
- Credit score
- Less important than your customers’ credit
- Documents
- A/R aging report, sample invoices
Straight answers
The upside, and the part to think hard about.
Advantages
- No new debt on your balance sheet
- Your customers’ credit carries the approval, not yours
- Scales automatically as your invoicing grows
- Available to businesses only a few months old
Things to consider
- Your customers may be notified and will often pay the factor directly
- Costs more than a bank line if your invoices pay slowly
- Recourse factoring leaves you liable for unpaid invoices — confirm which type you are signing
- Only works if you invoice other businesses, not consumers
Questions
Invoice Factoring questions.
Will my customers know I am factoring?
What happens if my customer never pays?
Do I have to factor all of my invoices?
How is this different from a loan?
Other options worth comparing
Term Loans
A lump sum with a fixed schedule — the straightforward way to fund something big.
CompareLines of Credit
A standing limit you draw from only when you need it — and only pay for what you use.
CompareMerchant Cash Advance
Capital against future card sales, often funded within a day — the fastest option available.
CompareWhere this comes up in Idaho
Factoring is a common answer in these local economies, and each page explains why.
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Ready to look at Factoring?
Two minutes to apply, a soft credit pull, and a real answer about whether this is the right instrument for you.