Invoice Factoring
Get paid for work you have already done.
Invoice factoring converts accounts receivable into working capital. You sell eligible invoices to Cash Flow Owner and receive an advance against their value. When your customer pays, the remaining balance is released to you, less the agreed fee.
How it works
Invoice Factoring, step by step.
Invoice as usual
Deliver your product or service and invoice your customer on your normal terms.
Submit invoices
Upload invoices and supporting documents through your secure account.
Verification
We confirm the receivable, which may include confirming delivery with your customer.
Receive your advance
Once approved, the advance is sent to your business bank account.
Customer pays
Your customer pays Cash Flow Owner according to the payment instructions on the invoice.
Balance released
The remaining balance is released to you, less the fee set out in your agreement.
Is it a fit?
Well suited when
- You sell to other businesses or to government agencies on payment terms.
- Your sales are growing faster than your cash on hand.
- Payroll, suppliers or fuel are due before customers pay.
- You want funding that tracks your sales rather than a fixed loan amount.
Transparency
What to understand
- Pricing follows your receivables
- Your agreement sets out the advance, the fee structure and how fees accrue while an invoice is outstanding.
- Your customers’ credit matters
- Funding decisions weigh the payment history and strength of the customers you invoice, alongside your own business.
- Notification is part of the process
- Your customers are instructed to remit payment to Cash Flow Owner. We handle that communication professionally and in coordination with you.
Industries
Where invoice factoring works well.
- Transportation & Logistics Carriers, fleets, freight brokers and logistics providers. Explore
- Staffing Commercial, professional, light industrial and healthcare staffing firms. Explore
- Business Services Consulting, technology services, marketing and professional firms. Explore
- Government Contractors Suppliers and service providers to federal, state and local agencies. Explore
- Manufacturing Producers and fabricators with receivables, inventory and equipment. Explore
- Wholesale & Distribution Distributors, importers and wholesalers of finished goods. Explore
Questions
Common questions
Is invoice factoring a loan?
No. Factoring is the purchase of receivables. You sell eligible invoices and receive an advance against them, rather than borrowing against a fixed credit limit.
Do I have to factor every invoice?
Program structures vary. Your agreement defines which customers and invoices are included, and we discuss the right structure before you sign.
Will my customers know?
Yes. Invoices carry payment instructions directing your customer to remit to Cash Flow Owner. Most businesses find their customers are familiar with the process.
Read: Factoring, asset based lending or purchase order financing?
Put your receivables to work.
Start with a secure digital application. We will review your business and talk through the structure that fits.