Invoice Factoring For Small Businesses
Improve your cash flow now by turning unpaid invoices today into capital you can use tomorrow.
Fuel Your Business Growth
Unpaid invoices disturbing your cash flow? Turn them into capital in as little as 24 hours with invoice factoring with our small business loans company.
$2+B in Business Funding Granted
Credibly is proud to have helped over 30,000 small American businesses realize their potential by funding over $2B.
The Credibly Advantage
To our loan experts, your business’s value isn’t defined solely by your credit score and P&L. We’ll look at your overall health and potential to forge a partnership instead of a mere transaction.
“I turned to Credibly because it seemed as though it was going to be easy, and it turned out to be quite simple. Applying for bank loans can be very time-consuming and intensive, and I thought this would be a great new way to get capital. We had just received a new commission for a pretty large hotel project, and I was able to feel comfortable hiring staff and buying equipment that we needed. I found it super effective for us, and would recommend Credibly to other architects or other small business owners in a heartbeat.”
Up To $400,000
Pre-qualify For Up To $400,000
Convert pending invoices into upfront cash easily. Invoice factoring doesn’t just unlock capital when you need it, it gives you the flexibility to use it as you need:
✔ Equipment, inventory, or supplies
✔ Employee salaries
✔ Short-term projects
✔ Repair emergencies
As Little As 1-2 Days
✔ Apply in just 10 minutes
✔ Get approved in as little as one day
✔ Receive the funds in your account within 24 hours
The 411 On Invoice Factoring
How Does Invoice Factoring Work?
And how can it help you maintain a stable cash flow and protect your annual revenue?
✔ Small business owners sell outstanding invoices to factoring companies (the factor) at a discounted rate
✔ The factor advances a lump sum up to 95% of the value of the invoice
✔ The factor then collects all payments directly from the client
✔ The factor sends the remaining balance to the business, minus any factoring fee, which is typically an agreed-upon percentage
Have a question about how this works? Our loan experts are happy to help.
As Low As 1.11
Funds That Allow You to Grow
We don’t just see you as a P&L sheet, we see the potential behind your business. Get business financing that lets you grow, not owe:
✔ Holistic approach to approval that assesses the number of invoices, type of industry, creditworthiness, and other factors
✔ Factoring fees between 0.5% and 4.0% that reflects your business, not just a credit score
✔ No surprise fees: we’ll tell you when fees may be charged and how much
Pre-Qualify Online
Click “Get Started” and enter some basic business information to pre-qualify.
Approval in as little as 4 Hours
Receive Same-Day Funding
Is factoring right for your business? Factoring is ideal for businesses that regularly have outstanding invoices and experience cash flow issues as a result.
Current assets are the tangible and intangible items that your company owns and can be easily turned into cash within one business cycle. Along with your checking and savings account, this includes things like accounts receivable, highly liquid marketable securities, inventory, and other shorter-term prepaid expenses.
Current liabilities include all of the debts and expenses firms expect to pay within one business cycle. This typically includes all of the normal costs associated with running a business: utilities, rent, matierials and supplies, interest and principal payments on debt, accounts payable, and accrued liabilities and income taxes.
Plan for the future with flexible, worry-free long-term loans.
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Work with Credibly and say “No” to reams of paperwork, weeks of waiting, and surprise fees.
We’ll give you upfront answers and upfront capital so you can get back to doing what you want to—growing your business.
We Like Supporting Small Businesses Like Yours
With more than 30,000 businesses funded across the USA and a 4.8 TrustPilot rating, we put our money where our mouth is.
To pre-qualify for funding using our simple online application
Businesses around the USA financed by Credibly
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Factoring is a form of financing that allows business owners to get advance cash on their invoices before they’re paid. This type of financing is not based primarily on the credit of the business owner. Instead, it is based on the credit-worthiness of the client to whom you’ve issued an invoice. Keep in mind, if you’re doing business with individuals as opposed to other companies, the chances of being able to factor invoices is seriously hampered.
To factor an invoice is to sell it to a lender in return for a discounted cash advance. The lender then collects the unpaid invoice from your customers on your behalf.
Unlike a traditional loan, invoice factoring allows you to access funding without taking on the burden of periodic fixed payments associated.
Invoice factoring and loans are two different types of financing. Unlike a traditional bank or business loan, factoring allows you to release untapped working capital from your accounts receivable to instantly improve your cash flow.
Invoice factoring is when a business sells its unpaid invoices to a third party, after which that third party (the factoring company) then controls the sales ledger and collects the debts.
Invoice discounting also allows you to draw money against your invoices, but in this case, your business maintains control over the administration of your sales ledger.
The main difference between invoice factoring and invoice financing is which party is responsible for collecting the unpaid invoices.
Invoice factoring: the factoring company purchases the unpaid invoices and takes over the collections process
Invoice factoring: While it may be helpful to have the lender collect unpaid invoices on your behalf, understand that you will have less control over the collections process and that your clients may become aware of your cash flow shortages, which could affect your customer service reputation.
Invoice financing (also called accounts receivable financing): the customer retains full control of collections, not the financing company
There are two main types of invoice factoring: recourse and non-recourse factoring.
Recourse factoring is the most common type of invoice factoring in the United States. It involves an agreement between businesses and invoice factoring companies (“factors”) that, in the event that the businesses’ customers do not pay their invoices, the businesses themselves will be responsible for compensating the factors.
With non-recourse factoring, the factors assume all of the risks; even if customers fail to pay, the business owners do not owe anything to the factors.
The fees depend on a variety of factors, such as the creditworthiness of your business and your clients, the number of invoices you plan on submitting for financing, and even the type of industry your business is in.
A typical factoring fee is, however, between 0.05% and 4%. Additional fees can include:
Monthly Minimum Fees
If a business produces less than ideal results after a credit check, factors may require that business to commit to submitting a minimum monthly invoicing amount or charge additional fees.
Maintenance Fees
Many factoring companies charge businesses a (usually monthly) fee to keep their accounts running and open.
Termination Fees
If a business owner signs a long-term contract and desires to terminate their invoice factoring agreement, there may be cancellation or termination fees, which will typically run a business a small percentage of their credit line.
Due Diligence Fees
Sometimes, a factor will check into the reliability of a business’ clients beyond face value (e.g., the clients’ creditworthiness, whether they have any liens against them, etc.). Each time the factor performs this check, it may charge the business a due diligence fee, which typically ranges in cost from a few hundred dollars to several thousand.
Apply now and receive approval in as little as one business day