Invoice Factoring

Quickly turn your outstanding invoices into the cash flow you need to keep your business running smoothly.

What to Expect

  • Factoring Lines: $200,000 – $7,000,000

  • Payment Period: 30 days – 120 days

  • Funding Turnaround: As little as 4 days

  • Available Through: Grow Capital Funding & Our Financing Network

  • Invoice factoring is when a business sells its invoices to a third-party factoring company in exchange for an immediate advance. The factoring company takes on the responsibility of collecting payments from customers, allowing your business to access funds quickly without waiting for customers to pay.

  • Invoice factoring, also known as factoring receivables, is a popular option for businesses that need to improve cash flow. By selling invoices, you receive quick payment instead of waiting for your customers to pay within 30, 60, or 90 days. This can help your business grow and continue operations without interruptions due to cash flow gaps.

Benefits of Invoice Factoring Through Grow Capital Funding

Cash Flow Without the Debt
Since invoice factoring isn’t a loan, it won’t add debt to your balance sheet. You get an advance on payments you’re already owed, improving cash flow and helping your business stay afloat without taking on additional liabilities.

  • Quick Access to Cash
    Get the funds you need in as little as 4 business days, instead of waiting 30–90 days for customer payments. Invoice factoring can also be used to offer longer payment terms to loyal customers without negatively impacting your cash flow.

  • Easier Qualification Requirements
    Unlike traditional loans, invoice factoring focuses on the value of your invoices and the creditworthiness of your clients. This makes it an ideal option for businesses that might not qualify for more conventional financing.

  • No Traditional Collateral Required
    Your invoices themselves serve as the collateral for the financing, meaning you won’t have to risk any other assets like real estate or inventory to secure the funds you need.

Minimum Requirements for Invoice Factoring
To qualify for invoice factoring, certain requirements must be met. These include:

  • Outstanding Invoices: Between 30–90 days old

  • Creditworthy Customers

  • Invoice Aging Report

  • Business’s Articles of Incorporation

  • Business Bank Account

  • B2B or B2G Company: Your business must deal with other businesses (B2B) or government entities (B2G).

Understanding Invoice Factoring Requirements

  • Creditworthy Clients: The factoring company will ensure your clients are financially stable and have a history of paying invoices on time. Your clients’ credit histories are a key factor in determining eligibility for invoice factoring.

  • Valid Invoices: The invoices you factor must be valid, for goods/services that have already been delivered, and free of any liens.

  • B2B or B2G: Invoice factoring is available for invoices from business-to-business or business-to-government transactions, as these clients are more likely to pay on time.

Additional qualifications may apply depending on the creditworthiness of your clients and your business, as well as the amounts and ages of the invoices.

Have Questions About Invoice Factoring?
Contact a Grow Capital Funding Financing Specialist for more information and personalized assistance.

Invoice Factoring FAQs
Our specialists are here to help you understand how invoice factoring works and whether it’s the right solution for your business. Feel free to reach out for answers to your questions.

FAQs

    • A business loan is money borrowed from a bank or financial institution to help with the costs of running or expanding a business. It’s typically repaid with interest over a set period of time.

  • To qualify for a business loan, you usually need to have been in business for a certain amount of time, show steady revenue, and have a good credit score. Lenders may also ask for a business plan, tax returns, and financial statements.