Does Your Small Business Need Financing?

Discover an Easy Way to Improve Cash Flow with Invoice Factoring

Running a small business isn’t just about making sales—it’s about getting paid on time. If you sell products or services to commercial or government clients, you already know the challenge: payment terms of 30, 45, or even 60 days are common.

Large corporations can afford to wait. Most small businesses can’t.

Even more challenging, many new business owners don’t account for delayed payments when they first launch. Bills still need to be paid, payroll doesn’t wait, and opportunities don’t pause just because your invoices are outstanding.

So what happens when waiting 60 days for payment simply isn’t an option?

The Answer: Invoice Factoring

Invoice factoring is a simple and effective financing solution designed to eliminate long payment delays. Think of it as a flexible alternative to a traditional line of credit—without the red tape.

With factoring, you receive cash for your unpaid invoices—often within 24 hours of submission. This gives you immediate working capital to cover rent, payroll, operating expenses, and even pursue new growth opportunities.

What Is Invoice Factoring?

Invoice factoring allows you to unlock the cash tied up in your accounts receivable. It’s particularly well-suited for cash-intensive industries such as:

Trucking and transportation

• Staffing and recruiting
• Business and professional services
• Medical practices
• IT and technology firms

How the Factoring Process Works

1. You deliver your product or complete your service and issue an invoice
2. You send the invoice to your client and a copy to your factoring company
3. The factoring company advances up to 85% of the invoice value
4. The remaining 15% is held in reserve to cover potential chargebacks or credits
5. Once your client pays the invoice, the reserve is released to you—minus a small fee

It’s straightforward, fast, and designed to keep your cash flow moving.

How Much Does Factoring Cost?

Factoring fees vary based on a few key factors, including:

Your monthly invoice volume

• How long your customers take to pay
• The credit strength of your clients

In most cases, factoring companies charge between 1% and 2.3% for every 10 days an invoice remains unpaid. Many providers also offer flexible pricing structures that can be customized to your business needs.

Why Factoring Is Easier Than a Bank Loan

The biggest advantage of invoice factoring is accessibility.

Unlike traditional bank loans, factoring companies are primarily concerned with your customers’ creditworthiness—not yours. Because the invoices themselves serve as collateral, factoring is available to small businesses, startups, and growing companies that may not qualify for bank financing.

Even better, factoring companies don’t require years of audited financial statements or endless paperwork. If you have reliable clients who pay their bills, you can often qualify quickly and easily.

Final Thoughts

Invoice factoring gives small businesses the freedom to focus on growth instead of cash flow stress. By turning unpaid invoices into immediate working capital, factoring helps you stay agile, competitive, and financially stable—without taking on long-term debt.

If your business needs fast, flexible financing, invoice factoring may be the solution you’ve been looking for.