Funding solutions
Invoice Factoring
Invoice factoring advances you most of the value of your unpaid business invoices, usually within a day or two, then collects from your customer and pays you the balance minus a fee. Approval depends heavily on your customers’ credit, not just yours.
Check your Invoice Factoring options
Invoice Factoring may be a good fit if…
- Your customers pay on 30, 60 or 90-day terms
- You are growing fast and cash is tied up in receivables
- You work with large companies or government agencies
- Your credit is limited but your customers are strong
Consider something else if…
- Want to keep collections in-house? A line of credit may fit. See Business Line of Credit
- Selling to consumers, not businesses? Look at working capital. See Working Capital
Requirements
What lenders typically look for.
These are common guidelines across our lender network, not hard cutoffs. Your advisor will tell you where you stand.
| Time in business | Startups considered |
|---|---|
| Revenue | Invoices to creditworthy business or government customers |
| Credit | Your customers’ credit matters most |
| Documents | Accounts receivable aging, sample invoices, customer list |
How it works
How Invoice Factoring work with WellRounded
Submit invoices
Send the invoices you want to factor and your AR aging report.
Get an advance
The factor advances a large share of the invoice value, often within a day.
Customer pays
Your customer pays the factor on their normal terms.
Receive the rest
The factor sends you the remaining balance minus its fee.
Costs
How Invoice Factoring are priced.
Factoring fees are usually charged as a percentage of the invoice for each period it remains unpaid. Recourse factoring is generally cheaper than non-recourse. Your advisor will compare advance rate, fee structure and contract terms such as minimum volumes.
‡ Ranges shown are typical and illustrative, not an offer of credit. Final amounts, rates and terms are set by the lender.
Calculator
Estimate your payment.
Estimates for illustration only, not an offer of credit. Your actual rate, term and fees are set by the lender and depend on your business.
Industries that often use Invoice Factoring
Is invoice factoring a loan?
Not technically. Factoring is the sale of your receivables at a discount, so it does not add debt to your balance sheet in the same way.
Will my customers know I am factoring?
In most factoring arrangements your customers pay the factor, so they will know. Some lenders offer confidential invoice financing instead.
What is recourse vs. non-recourse factoring?
With recourse, you buy back invoices your customer fails to pay. With non-recourse, the factor absorbs credit losses on covered invoices, usually for a higher fee.
Can trucking companies factor freight bills?
Yes. Freight factoring is one of the most common uses, often with fuel advances.
Ready to explore Invoice Factoring? See your options today.
- Decisions in as little as 24 hours*
- $10K–$5M+ across 10 products
- No hard credit pull to apply
- One dedicated funding advisor