You did the work. You sent the invoice. And now you wait 30, 45, sometimes 60 days or more, while payroll, rent, and suppliers don't wait at all.
For many small businesses, slow-paying clients are the single biggest threat to cash flow. Invoice factoring is one way to close that gap.
What is invoice factoring?
Factoring is a financing arrangement where you sell your outstanding invoices to a factoring company at a small discount. Instead of waiting for your client to pay, you receive most of the invoice value upfront, often within 24 hours, and the factor collects from your client when the invoice comes due.
When it makes sense
- You invoice other businesses on net-30 to net-90 terms.
- Your margins can absorb the factoring fee.
- You need predictable cash flow to cover payroll or take on new orders.
What to watch for
As with any financing tool, the terms matter. Review the advance rate, the fee structure, and whether the agreement is recourse or non-recourse before signing.
If slow receivables are holding your business back, contact our team. We'll help you decide whether factoring or another financing option is the right fit.