Turn unpaid invoices into immediate cash to cover expenses and grow your business.
Invoice financing (also called invoice factoring or accounts receivable financing) lets you get cash immediately for unpaid invoices instead of waiting 30-90 days for customers to pay. A lender advances you 70-95% of the invoice value upfront, then collects payment from your customer. Once paid, you receive the remaining balance minus fees. It's ideal for B2B businesses with slow-paying customers and strong accounts receivable.
Send unpaid invoices to the financing company. They verify the invoices are legitimate and your customers are creditworthy.
Get 70-95% of invoice value deposited into your account, usually within 24-48 hours. This is your immediate cash to cover expenses.
Your customer pays the financing company directly (or you collect and forward payment, depending on the arrangement).
Once the invoice is paid, you receive the remaining 5-30% balance minus financing fees (typically 1-5% of invoice value).
The financing company takes over collecting payments from your customers. They handle accounts receivable management. Learn more about what invoice factoring is.
You continue collecting payments from customers, but use invoices as collateral for a line of credit. Customers don't know you're using financing.
Invoice financing is ideal for:
Costs vary based on invoice value, customer creditworthiness, and payment terms:
Fees are typically higher than traditional loans but provide immediate cash flow when you need it most.
Invoice factoring means the financing company collects from your customers. Invoice financing/discounting means you collect and use invoices as collateral. Compare invoice factoring vs business loans to understand your options.
With invoice factoring, yes—they pay the financing company directly. With invoice discounting, no—you collect payments as usual. Choose based on whether you want to maintain direct customer relationships.
With non-recourse factoring, the financing company absorbs the loss. With recourse factoring, you're responsible for unpaid invoices. Most arrangements are recourse, so choose customers carefully.
Yes, you can finance all invoices or select specific ones. Many businesses start with their largest or slowest-paying invoices to maximize cash flow impact.
Detailed explanation of invoice factoring and how it works.
Compare invoice financing to traditional business loans.
Calculate your cash flow to see if invoice financing makes sense.
Explore accounts receivable and invoice financing options.
Get immediate cash for your accounts receivable without waiting for customer payments.
Fast funding • Based on receivables • Flexible terms