Invoice Factoring - Up to 90% Advance
Turn unpaid invoices into immediate cash. No debt added.
See if I qualifyInvoice factoring converts unpaid B2B invoices into cash now. You sell the invoice at a discount, receive most of its value up front, and the balance (minus a fee) when your customer pays. The critical difference from a loan: approval depends heavily on your customers' creditworthiness, not only your own. That makes factoring reachable for young businesses with weak credit but strong customers.
Who qualifies
- You invoice other businesses or government agencies on net terms (B2B or B2G, not consumers)
- Invoices are for work already delivered and not already pledged as collateral
- Your customers pay reliably - their credit matters more than yours
- Often workable at 6+ months in business, sometimes less
Best for
Staffing, trucking and freight, manufacturing, wholesale, professional services, and government contractors - any business where cash is tied up in 30-to-90-day payment terms while payroll comes due weekly.
What to check before you sign
- Recourse vs non-recourse. With recourse factoring you buy back invoices your customer never pays. Non-recourse shifts that risk to the factor but costs more and usually only covers customer insolvency, not slow payment.
- Minimum volume commitments. Some facilities require a monthly minimum and charge a fee if you fall short. If your invoicing is uneven, this matters.
- Contract length and exit terms. Annual contracts with early termination fees are common. Ask what it costs to leave.
- Additional fees. Origination, wire, credit-check, and monthly service fees can add meaningfully to the headline discount rate.
Frequently asked questions
How much of the invoice do I get up front?
Advances typically run 80% to 90% of face value, with the rest released when your customer pays, minus the factoring fee. The exact advance depends on your industry, your customers' payment history, and invoice size.
Will my customers know I am factoring?
In notification factoring - the most common and least expensive form - yes, your customer is told to remit payment to the factor. Non-notification factoring keeps the arrangement private but is harder to qualify for and costs more. In most B2B industries, factoring is routine and carries no stigma.
Can I qualify with bad credit?
Often, yes. This is the main advantage of factoring: the factor is underwriting your customers' ability to pay, not primarily yours. Businesses declined for term loans on credit grounds are frequently approved for factoring, provided their customers are creditworthy.
Do I have to factor all my invoices?
Not necessarily. Spot factoring lets you sell selected invoices as needed, while a full ledger facility covers all receivables and usually prices better. If you only need occasional cash flow help, ask specifically about spot factoring.
What does factoring cost?
Fees are typically quoted per 30-day period the invoice remains unpaid, so the total cost depends on how quickly your customer pays. Ask for the fee schedule and any additional charges - origination, wire fees, minimum volume requirements - before committing, since those can meaningfully change the effective cost.
Why apply through Fundwise
- One application, every lender we partner with
- No hard credit pull to see your matches
- Free Money screening for tax credits included
- Real human concierge if you get stuck