Invoice Factoring
Turn outstanding invoices into immediate cash. Invoice factoring gives your business the working capital it needs without taking on debt.
01 / Invoice Factoring
What is invoice factoring?
Invoice factoring is a financial service that lets businesses sell outstanding invoices to a factoring company at a discount in exchange for immediate cash. It is not a loan: you are selling an asset, your accounts receivable, and receiving capital upfront instead of waiting 30, 60, or 90 days to get paid.
The factoring company then owns those invoices and collects payment directly from your customers under the original terms. Once collected, the remaining balance, minus a small factoring fee, is returned to you. Unlike invoice financing, where invoices are collateral for a line of credit, factoring offloads collections entirely.
- Not a loan: no new debt is created on your balance sheet.
- Approval is based on your customers credit, not your own.
- Fast access to capital, often within 24 hours.
- Flexible: factor only the invoices you choose, when you need to.
02 / Capabilities
What you can do
Invoice factoring is not available in Invoice My Clients yet, and there is no timeline for it. This page explains how factoring works so you can decide whether it fits your business.
Value thresholds
Factoring companies usually set a minimum invoice value. Invoices above it are the ones worth offering to a factor.
You choose what to factor
Factoring is selective. You decide which invoices to sell and when, and you confirm every submission with the factor.
Submission to the factor
You submit the invoice and supporting documents directly to the factoring company. There is no in-app submission in Invoice My Clients today.
Bad debt protection
Non-recourse factoring protects you from customer non-payment, with the factoring company assuming the credit risk.
A smarter alternative
Skip aggressive collections agencies, costly legal action, and write-offs: get paid upfront while preserving client relationships.
Improved cash flow
Keep loyal customers on longer payment terms while maintaining healthy cash flow to grow your business.
03 / Process
How invoice factoring works
Complete your work
Deliver your products or services to your customer and generate an invoice as normal.
Submit your invoice
Once the invoice meets the value threshold, submit it to the factoring company, no need to wait for the due date.
Receive your advance
The factoring company verifies the work and advances up to 90% of the invoice value, typically within 24 hours.
Factor collects and settles
The factor collects payment from your customer, then returns the remaining 10% minus the factoring fee.
04 / FAQ
Invoice factoring FAQ
What is recourse vs non-recourse factoring?
Recourse factoring means you remain liable if your customer does not pay; non-recourse shifts more credit risk to the factor, often at a higher fee. Terms vary by partner, and your agreement spells out who bears default risk.
How fast can I get funded?
After approval, many advances fund within a few business days once invoices are verified. Exact timing depends on verification, customer responsiveness, and partner cutoffs.
Will my customer know I am factoring?
Often yes: notification or payment to a lockbox or factor is common so the customer pays the right party. Some structures are more discreet; your partner explains the notice process.
How do I start from Invoice My Clients?
You cannot yet. There is no factoring flow in Invoice My Clients and no timeline for one. If you factor invoices with a partner today, keep invoicing here and record payments as they settle. Automated Collections and Concierge Collections are the live options for overdue balances.
Get paid now, not in 90 days.
Factoring is not built into Invoice My Clients yet. For faster cash today, automate reminders and let Concierge Collections chase what is overdue.
Not available yet, and no timeline. Automated Collections and Concierge Collections are live today.