Invoice Financing
Convert those IOUs into Cash
Often referred to as accounts receivable financing, invoice financing lets you sell invoices to a lender, who advances you a portion of the invoice amount (usually 80%) and holds onto the remaining percent (usually 20%) until the invoice is paid.
Loan Amount
Up to 100% of invoice value
Interest Rate
As low as 3% + % per week outstanding
Term Length
Until customer pays invoice
Time to Funding
As fast as 1 day
Pros
- No need to wait for unpaid or slow-paying invoices
- Based on credit of the invoiced business
- Invoices serve as collateral
Cons
- fees based on time it takes for invoice to be paid
- can have higher fees than traditional modes of financing
Compare to other loan types
| Loan types | Max amount | Interest rate | Speed |
|---|---|---|---|
| Invoice Financing | Up to 100% of invoice value | Roughly. 3% + % per week outstanding | As little as 1 day |
| SBA Loan | $5K – $5M | Starting at 7.75% | As fast as 2 weeks |
| Business Term Loan | $25K to $500K | 7 – 30% | As fast as 2 days |
| Business Line of Credit | $5K to over $1M | 7% – 25% | As fast as 1 day |
| Equipment Financing | Up to 100% of equipment value | 7% – 30% | As fast as 2 days |
| Short-Term Business Loan | $2.5K – $250K | Starting at 10% | As fast as 1 day |
| Merchant Cash Advance | $5K to $500,000 | As low as 1.15 | As fast as 1 day |
Invoice Financing
Stop Waiting to Get Paid to Run Your Business
Delayed payments from late paying customers means you don’t get that capital you often expect to put back into your business right away. This can tie up your working capital and create a whole laundry list of operational problems, such as not having sufficient capital to service the next client, project, or even make payroll.
With Invoice financing (often called accounts receivable financing), you could see the cash for those invoices right away and as result get a more predictable cash flow to smoothen out month-to-month operations.
In short, if you struggle to get paid on time or could benefit from extra cash flow without adding another loan payment, invoice factoring can be a great way to secure capital right away and help shift your mindset from “opportunity cost” to “opportunity won!”
Minimum Documents Needed to Qualify:
- Outstanding Invoices
Ready to See your Options?
It’s free to apply and it won’t impact your credit