Invoice Factoring
Turn Unpaid Invoices Into Immediate Cash Flow
What is Invoice Factoring?
Invoice factoring (also called accounts receivable financing) is a financing solution that allows you to sell your unpaid customer invoices in exchange for immediate cash. Instead of waiting 30, 60, or 90 days for your customers to pay, you get funded within 24-48 hours, giving you the working capital you need to run and grow your business today.
Unlike a loan, invoice factoring is not debt, it's a sale of your accounts receivable. This means no monthly payments, no impact to your debt-to-equity ratio, and no collateral beyond the invoices themselves. Factoring provides immediate liquidity while the factoring company handles collections, allowing you to focus on running your business instead of chasing payments.
Why Choose Invoice Factoring?
Immediate Cash Flow
Get 80-95% of your invoice value within 24-48 hours instead of waiting 30-90 days. Eliminate cash flow gaps and keep your business running smoothly.
No Debt Added
Factoring is a sale, not a loan. It doesn't appear as debt on your balance sheet and doesn't impact your ability to secure other financing.
Easy Qualification
Approval based on your customers' creditworthiness, not yours. Startups and businesses with challenged credit can qualify if they have creditworthy clients.
Outsourced Collections
The factoring company handles all collection efforts professionally. Free up your time and resources while ensuring invoices get paid.
Flexible Funding
Funding grows with your business. The more invoices you generate, the more working capital you can access—with no fixed limits.
Fast Setup
Get approved and start factoring within days, not weeks. No lengthy applications or extensive documentation required.
How Invoice Factoring Works
1. You Invoice Your Customer – Deliver your goods or services and send your customer an invoice with standard payment terms (NET 30, 60, or 90).
2. Submit Invoice for Factoring – Submit your invoice to the factoring company for funding. They verify the invoice and your customer's creditworthiness.
3. Receive Immediate Advance – Get 80-95% of the invoice value deposited into your account within 24-48 hours. Use funds immediately for business needs.
4. Factor Collects Payment – The factoring company sends a notice to your customer and handles all collection efforts on the invoice.
5. Customer Pays Factor – Your customer pays the invoice directly to the factoring company according to the original payment terms.
6. Receive Final Payment – Once collected, you receive the remaining balance (5-20%) minus the factoring fee. Typically 1-5% of invoice value.
Perfect For These Business Situations
🟢 Cover Payroll – Ensure employees get paid on time even when customer payments are delayed
🟢 Purchase Inventory or Materials – Take on new projects without waiting for previous invoices to be paid
🟢 Take Advantage of Growth Opportunities – Accept larger orders or new clients without cash flow constraints
🟢 Bridge Seasonal Cash Flow Gaps – Maintain operations during slow seasons when receivables are outstanding
🟢 Fund Marketing & Expansion – Invest in growth initiatives without depleting working capital
🟢 Avoid Credit Card Debt or High-Interest Loans – Get affordable financing based on your invoices, not your credit
🟢 Smooth Out Uneven Cash Flow – Stabilize finances when customers pay on different schedules
🟢 Support Rapid Growth – Scale without being limited by slow-paying customers
🟢 Maintain Vendor Relationships – Pay suppliers on time to secure better terms and discounts
Call 805-819-ROCK or tap “Apply Now” to get started
Industries That Benefit from Invoice Factoring?
⚫ Staffing & Recruiting Agencies - Cover payroll while waiting for client payments on placed employees
⚫ Transportation & Trucking - Get paid immediately for freight bills instead of waiting 30-60 days
⚫ Manufacturing - Fund materials and production costs while invoices are outstanding
⚫ Wholesale & Distribution - Purchase inventory and fulfill orders without cash flow delays
⚫ Business Services - Consultants, IT services, marketing agencies, and professional services
⚫ Healthcare Services - Medical staffing, home healthcare, and medical equipment suppliers
⚫ Government Contractors - Bridge the gap while waiting for government agency payments
⚫ Construction & Contractors - Cover materials, labor, and subcontractors while waiting for payment
⚫ Oil & Gas Services - Fund equipment and operations between service completion and payment
FAST, EASY, RELIABLE
10,000+
Business Served
$2 billion+
Funds Delivered
Customer Reviews
Frequently Asked Questions (FAQ)
1. Will my customers know I'm factoring invoices?
Yes. The factoring company sends a "Notice of Assignment" to your customers informing them that payments should be sent to the factor instead of you. This is standard practice and most customers are familiar with factoring.
2. How much of my invoice will I receive upfront?
Most factors advance 80-95% of the invoice face value immediately. The exact percentage depends on your industry, customer creditworthiness, and the factor's policies. Trucking/freight companies often get 95%+, while other industries typically receive 80-90%. The remaining balance (minus fees) is released after your customer pays.
3. Can I choose which invoices to factor?
It depends on your agreement. Some factors offer "spot factoring" where you can select specific invoices to factor as needed. Others require you to factor all invoices from a specific customer once you start factoring them ("whole ledger factoring"). Spot factoring offers flexibility but usually comes with higher fees.
4. What if my customer doesn't pay the invoice?
With recourse factoring (most common), you must buy back the unpaid invoice or replace it with another invoice. With non-recourse factoring, the factor absorbs the loss if non-payment is due to customer bankruptcy or credit insolvency—but you're still responsible for disputes about the goods/services you delivered.
5. Do I need good credit to qualify for invoice factoring?
No! This is one of factoring's biggest advantages. Approval is based primarily on your CUSTOMERS' creditworthiness, not yours. Startups, businesses with challenged credit, or those who've been denied bank loans can often qualify for factoring if they have creditworthy clients who pay reliably.
6. Are there long-term contracts required?
It varies by factor. Some require 6-12 month contracts, while others offer month-to-month agreements with no long-term commitment. Factors with contract requirements typically offer lower fees. Always read the contract carefully and understand any early termination fees before signing.
7. Can I factor invoices to government agencies?
Yes! Government invoice factoring is very common, especially for federal government contractors. Government agencies are considered very creditworthy. However, government invoices often take longer to pay (60-90+ days), which may result in slightly higher factoring fees. Specialized government contract factoring companies exist for this purpose.
8. What's the minimum amount I need to factor?
Most factoring companies have monthly minimums ranging from $10,000 to $50,000 in total invoiced amount. Some factors specialize in small businesses and have lower minimums or no minimums at all (though fees may be higher). Individual invoice minimums typically range from $500 to $1,000.
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