Turn Unpaid Invoices Into Immediate Cash

Factoring fees typically range from 1% to 5% per 30 days. The exact rate depends on your industry, invoice volume, customer credit quality, and whether the arrangement is recourse or non-recourse. A $100,000 invoice factored at 2% over 30 days would cost $2,000 in fees.

Any U.S. B2B business with creditworthy commercial customers and outstanding invoices. Factors care more about your customer's credit than your own. Common qualifying industries: trucking, staffing, manufacturing, wholesale, business services, government contractors, and IT services.

In recourse factoring, you (the seller) are responsible if your customer doesn't pay the invoice. In non-recourse factoring, the factor absorbs the credit risk if the customer becomes insolvent. Non-recourse factoring costs more (typically 0.5%–1% higher) because the factor takes on more risk. Most small business factoring is recourse.

In traditional (notification) factoring, yes — your customers receive notice to send payment directly to the factor. In non-notification factoring (less common, available for stronger borrowers), the arrangement is confidential. Most factors handle the customer relationship professionally, and treating factoring as a standard business finance tool minimizes any stigma.

Closely related but not identical. Invoice financing (also called invoice discounting) is a loan against your invoices — you still own the invoice and you still collect from your customer. Invoice factoring is a sale of the invoice — the factor owns it and collects from your customer. Financing is more flexible; factoring usually advances more.