Invoice factoring
Invoice Factoring: You Did the Work. Get Paid Like It
Invoice factoring is the sale of an unpaid B2B invoice, an asset you already own, for an immediate cash advance instead of waiting the usual 30 to 90 days for your customer to pay. Because it’s a sale rather than a loan, approval leans more on your customer’s payment history than your own credit score.
Approval based on your customers’ payment strength, not your credit score · Funding from $10,000 to $6 million
How Factoring Works
- You invoice your customer as usual, for work delivered or goods shipped.
- A factoring partner advances you most of the invoice value right away. We match you with the right factor and structure the deal, instead of you waiting 30–90 days.
- Your customer pays on their normal terms. You receive the remaining balance minus the factoring fee.
Because factoring is the sale of an asset you already own (your receivable), it isn’t a loan and doesn’t stack debt on your balance sheet. Underwriting cares most about whether your customer reliably pays, which is exactly why factoring works for newer businesses and owners rebuilding credit.
Built for Businesses That Bill on Terms
- Construction subcontractors: bridge draws, retainage, and 60-day GCs without slowing the next job.
- Trucking & freight: brokers pay in 30–45 days; freight factoring turns broker and shipper invoices into cash this week, so fuel and drivers get paid on time. See what freight factoring rates typically cost.
- Staffing, wholesale & B2B services: payroll and inventory run weekly even when receivables don’t.
Factoring vs. a Cash Advance
Both deliver fast capital; they solve different problems. Factoring frees up money you’ve already earned and scales with your invoicing. A merchant cash advance funds against future revenue and suits card-heavy or consumer businesses without invoices. Many clients use both at different moments. See the full comparison, run your numbers with the free invoice factoring calculator, or just ask your advisor.
Invoice Factoring vs. Accounts Receivable Financing
The two terms get used interchangeably, but they’re structured differently. Invoice factoring is the sale of a receivable: the factor buys the invoice and typically collects payment from your customer directly. Accounts receivable financing borrows against your receivables instead: you keep invoicing and collecting as usual while the outstanding balance secures the funds. Your advisor will help you weigh both and match you with the structure that fits how your business bills.
From Unpaid Invoice to Working Capital in Three Steps
Apply in under 3 minutes
Just your basic business info and your invoices or receivables situation: no documents needed to start.
See your options
Offers typically come back within hours: an advisor prices factoring options across a network of funders and walks you through the real numbers.
Get funded
Accept an offer and funding is often possible as soon as the same day: your last 4 months of business bank statements finalize the file.
No credit impact to check options · Offers within hours
Real people pick up.
You’ll talk to a funding advisor, not a phone tree. Monday – Friday, 9:00 a.m. – 8:00 p.m. ET.
If Your Business Earns Revenue, You’re Probably Closer Than You Think
Banks look backward at credit history. We look forward at where your business is going. Here’s what we consider:
- Consistent monthly revenue: steady deposits matter more than a perfect score.
- An active business bank account: your last 4 months of statements tell the story.
- A U.S.-based business: we arrange funding for small businesses nationwide.
- Any credit profile considered: past challenges don’t define your future.
Exact requirements vary by funding product. Checking your options never affects your credit score.
Check My Eligibility60-Second Match Check
Three questions, instant estimate: nothing submitted, nothing stored.
Strong, consistent deposits can push real offers above this range.
Illustrative estimate, not an offer. Checking for real never affects your credit.
Invoice Factoring FAQs
How does invoice factoring work?
You hand over an unpaid B2B invoice and receive most of its value as an immediate advance. When your customer pays the invoice, you receive the remainder minus the factoring fee. You've already done the work: factoring just removes the 30–90 day wait.
Is factoring a loan?
No. Factoring is the sale of a receivable, an asset you already own. That's why approval depends more on your customer's reliability to pay than on your credit score, making it one of the most accessible funding tools for newer or credit-challenged businesses.
What do I need to qualify for invoice factoring?
In most cases, just two things: unpaid invoices to other businesses (B2B) and your last 4 months of business bank statements. Because approval leans on your customers' payment strength rather than your credit score, you can apply online in under 3 minutes with no impact to your credit.
What is the difference between recourse and non-recourse factoring?
With recourse factoring, your business stays responsible if a customer never pays: you buy back or replace the unpaid invoice. With non-recourse factoring, the factor absorbs that loss on approved customers, usually in exchange for stricter vetting of who you can factor. Your advisor will walk you through which structure your offer uses before you sign anything.
Which industries benefit most from factoring?
Any business that invoices other businesses on terms: construction subcontractors waiting on GCs, trucking companies waiting on brokers and shippers, staffing agencies, wholesalers, and B2B services. If your money is stuck in your accounts receivable, factoring fits.
Will my customers know I'm factoring?
It depends on the structure: arrangements vary from fully disclosed to discreet. Your Forwardfy advisor will explain exactly how payments are handled and what (if anything) your customers see before you commit.
How fast can I get cash from my invoices?
Apply online in under 3 minutes with no credit impact. Once your account is set up, eligible invoices can be turned into working capital, often the same day you accept.
Related Tools & Guides
Invoice Factoring Calculator
Estimate your cash advance, factoring fee, and reserve release.
Open the tool →Freight Factoring Rates
Fee structures, advance rates, and recourse explained.
Read the guide →Trucking Business Funding
Freight factoring and working capital for carriers.
Read the guide →Construction Funding
Bridge slow-paying invoices and retainage between draws.
Read the guide →Compare Funding Options
See how factoring compares to other funding structures.
Read the guide →Merchant Cash Advance
Another fast option sized to your revenue.
Read the guide →Your Receivables Are Capital: Use Them
Three minutes to apply. No credit impact. Cash from your invoices, often the same day you accept.
Checking your options has no effect on your credit score · Monday – Friday, 9:00 a.m. – 8:00 p.m. ET