Invoice factoring for businesses that wait 30 to 90 days to be paid
Advance most of an invoice's value today and collect the balance when your customer pays.
Invoice Factoring overview
- Typical amount
- 70 to 95 percent of invoice value
- Typical term
- Per invoice, 30 to 90 days
- Time to fund
- 1 to 3 days
Ranges are typical for this type of financing. Your amount, term and pricing depend on the lender and your business profile.
How it works
Factoring sells or borrows against your receivables. The factor advances most of the invoice value within a day or two, collects from your customer on the normal terms, then releases the remainder minus a fee. Approval depends on your customers' credit more than your own, which makes it accessible to newer businesses with strong commercial clients.
It is common in trucking, staffing, manufacturing, wholesale and government contracting, anywhere that net-30 to net-90 terms are standard and payroll is weekly. Capital Ally matches you to factors that specialize in your industry and offers both recourse and non-recourse structures.
Best for
- B2B businesses with net-30 or longer terms
- Trucking, staffing, wholesale and contractors
- Fast-growing companies whose receivables outpace their cash
- Government and large-corporate suppliers
What businesses use it for
Weekly payroll
Fund payroll from invoices that will not pay for 45 days.
Take on larger contracts
Accept the big order without worrying about carrying the receivable.
Supplier discounts
Pay suppliers early and capture early-payment discounts that outweigh the factoring fee.
How it compares
Invoice factoring vs line of credit
A line is cheaper if you qualify. Factoring scales with sales and does not depend on your own credit.
Invoice factoring vs working capital
Working capital is a fixed advance repaid daily. Factoring is tied to specific invoices and repaid when the customer pays.
Invoice Factoring: common questions
See all questionsWill my customers know?
In standard factoring the factor collects directly and customers are notified. Confidential factoring exists for some industries.
Recourse or non-recourse?
Recourse means you buy back an invoice the customer never pays. Non-recourse shifts that risk to the factor at a higher fee.
What does it cost?
Fees are a percentage of the invoice per period outstanding. A customer that pays in 30 days costs less than one that pays in 90.
Other funding solutions
Ready to apply for Invoice factoring?
Two minutes to check eligibility. A specialist reviews it the same day. No credit impact, no obligation.