- Amount
- Advances of roughly 80–90% of invoice value
- Term
- Per invoice, on 30/60/90 day cycles
- Speed
- About a week to set up, then 24 hours per batch
Factoring converts receivables into cash immediately. You sell the invoice to a factor, receive the bulk of its value straight away, and the balance less the fee is released when your customer pays.
The underwriting emphasis sits on your customers’ credit rather than your own, which makes factoring workable for young or thinly capitalised businesses with strong counterparties. It suits any model where the work is finished and invoiced long before the money arrives — staffing, freight, and subcontracting in particular.
Commonly used for
- B2B businesses invoicing creditworthy customers
- Staffing firms funding payroll ahead of client payment
- Freight and trucking operations
- Contractors and subcontractors on net terms
- Young businesses with strong customers but a short credit history
What it generally takes to qualify
- At least one year in business
- Around $15,000 or more in monthly revenue
- A credit score of roughly 500 or better
Guidelines, not hard cut-offs — tell us the situation and we will tell you where it stands.
Questions
Will my customers know?
In notification factoring, yes — payment is directed to the factor. Non-notification arrangements exist but are underwritten more tightly.
What does it cost?
A discount fee against the invoice value, generally scaled to how long the invoice stays outstanding. Faster-paying customers cost less to factor.
What if my customer never pays?
That depends on whether the facility is recourse or non-recourse. It is the single most important term in a factoring agreement — establish it before signing.
Apply for invoice factoring
A few minutes, no cost and no credit pull. The application is specific to this product.
Start the application