How It Works
Factoring, Explained.
Invoice factoring converts revenue you've already earned into immediate capital. It's not a loan, and understanding the difference is the first step to using it well.
Factoring is not a loan.
No new debt.
You're selling a receivable, not borrowing against it. Nothing appears on your balance sheet as a liability.
No interest, no fixed payments.
You pay a straightforward factoring fee only on the invoices you choose to advance.
Qualification is different.
Approval is based on the creditworthiness of your customers, not the credit history of your business.
The Detailed Process
Step 1
Consultation & Application
We start with a short conversation to understand your business, customers, invoicing cadence, and cash flow goals. Then we walk you through a straightforward application focused on your customer base, not your credit score.
Step 2
Account Setup & Invoice Submission
Once approved, we open a reserve account for your business. When you submit an invoice, we advance 80–90% of its face value (up to 95% for trucking). The remainder is held in reserve until your customer pays, at which point it's released to you less our fee.
Step 3
Funding & Collection
Funds are wired within 24 to 48 hours of invoice submission. We handle the professional, respectful follow-up on payment, so you can focus on running your business, not chasing checks.
Factoring vs. Traditional Lending
Two very different tools for two very different jobs.
| Factor | Invoice Factoring | Traditional Loan |
|---|---|---|
| Qualification | Based on your customers' credit | Based on your business credit & history |
| Pricing | ~2–3% per 30-day period on advanced invoices | Fixed interest rate + fees |
| Speed to funding | 24 to 48 hours | Weeks to months |
| Balance sheet impact | No new debt | Adds a liability |
| Scalability | Grows automatically with your sales | Fixed limit; requires re-underwriting |
| Receivables management | Included, we handle collections | Not included |
Factoring FAQ
Straight answers to the questions we hear most.
No new debt. No lengthy approval process. Below is how the mechanics actually work, advance rates, reserves, fees, and timelines.
A Bridge, Not a Destination
We help you graduate to bank financing.
For many of our clients, factoring is a stepping stone. As your business stabilizes and grows, we work alongside you, and often directly with your future banker, to help you transition to conventional bank credit when the time is right.