How invoice financing works
The product exists because of one specific problem: the money is earned but the cash arrives on your customer's schedule, not yours. A lender advances most of the invoice value now, and the arrangement squares up when the customer settles.
Approval leans heavily on your customers' creditworthiness rather than your own, because their payment is what repays the advance. That makes it realistic for growing businesses whose receivables are strong even when their own file is still thin.
Structures differ, and the difference matters. In some, your customers pay the financing company directly and know about the arrangement. In others nothing changes on their side at all. Which one you are being offered is among the first things your advisor will make explicit.
At a glance
- Amount
- 50 – 90% of value
- Funded in
- As few as 48 hours
- Term
- Until invoices paid
Common uses: Bridge receivables · Fund expansion · Cover current bills
Ranges are typical for this product type and are not an offer of credit — your options depend on your business profile.
What businesses use invoice financing for
Slow-paying customers
Net-30, net-60 and net-90 terms stop deciding whether you can make payroll this month.
Growth that outruns collections
Taking the next job while the last three are still unpaid. Growth is exactly when receivables pile up.
Covering what is already due
Rent, suppliers and wages paid on time out of money you have already earned.
Where it's strong — and what to weigh
No product suits every business. If this one doesn't fit yours, an advisor will say so and point at what does.
Where it's strong
- Advances of 50–90% of invoice value, in as few as 48 hours
- Leans on your customers' credit, which helps a thin file
- Scales with sales. More receivables means more available capital
- No fixed repayment schedule. It settles as invoices are paid
Worth weighing
- B2B only. It works on invoices to commercial customers
- Cost builds the longer an invoice sits. Slow payers get expensive
- Some structures notify your customers. Know which you are signing
- It fixes timing, not profitability. Persistent losses need a different conversation
- 1+year in business
- We fund established businesses with consistent revenue.
- 50states
- Available to businesses across the United States.
- 48hours
- A real first answer, not an acknowledgement.
- 1advisor
- The same person from your first conversation through funding.
Invoice Financing: common questions
What business owners ask us most about it. See all questions.
Will my customers know I am financing their invoices?
It depends on the structure. In factoring-style arrangements they pay the financing company directly and are aware of it. In others nothing changes on their side. Your advisor makes clear which structure an offer uses before you sign.
Which invoices qualify?
Invoices to commercial customers with reasonable credit and normal payment terms. Consumer invoices generally do not qualify, because the whole product rests on your customer's ability to pay.
How much of an invoice can I get up front?
The lenders we work with advance 50 to 90 percent of the invoice value, with the balance settling when your customer pays.
How is this different from a line of credit?
A line is a standing limit based on your overall business. Invoice financing is tied to specific receivables and leans on your customers' credit instead of yours, which is why businesses with strong receivables but a thin file often qualify here first.
Find out where your business stands.
Six quick questions, no effect on your credit, and a real answer from an advisor within 48 hours.
