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Invoice factoring* for small businesses

Improve your cash flow now by turning unpaid invoices today into capital you can use tomorrow.

Turn remaining invoice balances into capital with invoice factoring

Fuel your business growth 

Unpaid invoices disturbing your cash flow? Turn them into capital in as little as 48 hours with invoice factoring with our small business loans company.

$2B+ in business funding granted

Credibly is proud to have helped over 30,000 small American businesses realize their potential in 325+ industries.

The Credibly difference

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.

Speak to an invoice factoring expert

What is invoice factoring, and how does it work?

Max advance
up to $400,000

Get the financing you need to grow

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

Get invoices paid out
in as little as 24 hours

Never wait months for payments again

Rather than waiting 30 to 120 days for your customers to pay you, invoice factoring provides you with a fast business loan in as little as one business day.

  • Apply in just 10 minutes
  • Get approved in as little as 4 hours
  • Receive the funds in your account within 24 hours

How it works:
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.

Factor rates
as low as 1.11**

Funds that allow you to grow

We don’t just see you as a P&L, 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 that reflects your business, not just a credit score
  • No surprise fees: we’ll tell you when fees may be charged and how much

How to apply for invoice factoring

Step 1
Pre-qualify online

Click “Get Started” and enter some basic business information to pre-qualify.

Step 2
Approval in as little as 4 hours

We’ll review your application in as little as one day and reach out to you with the best financing options, be it invoice factoring or another lending option.

Step 3
Receive same-day funding

If approved, you can get the entire amount deposited directly into your account on the same day.

What our customers say about our invoice factoring company

What customers say about our small business loans
10 minutes
To pre-qualify for funding using our simple online application
Businesses around the USA financed by Credibly
Rating on TrustPilot
In funding provided by Credibly

Invoice factoring loan advantages and disadvantages

Is factoring right for your business? Factoring is ideal for businesses that regularly have outstanding invoices and experience cash flow issues as a result.

  • Invoice factoring provides a safe, immediate source of cash flow by releasing working capital that is tied up in unpaid invoices, without any hidden fees.
  • Having a lender collect invoices for you allows you to save time otherwise spent on administrative tasks and chasing late payments.
  • It can provide flexibility as amounts, and payment terms can expand and contract with your sales volume.
  • Invoice factoring companies will verify your invoices with clients to ensure that they’re accurate. Including a third party can affect customer relationships and also means that you will have to give up some control.
  • If your client has a weak payment history or credit score, your approval may be affected; factoring companies prefer to avoid the risk of non-payment.
  • Invoice factoring can reduce the scope of additional borrowing and the factoring fee is often higher than the fees associated with a longer-term loan.

Other lending options Credibly offers*

Business line of credit

Draw as you need and only pay for what you use.

Merchant cash advance

Flexible financing and remittance based on what you can afford.

Long-term business loans

Plan for the future with flexible, worry-free long-term loans.

Working capital loan

Always have enough cash flow to seize any opportunity.

Why Credibly for Invoice Factoring?

21st Century Financing For 21st Century Businesses

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.

FAQs About invoice factoring

What is factoring?

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.

How does invoice factoring work?

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.

Is invoice factoring a kind of bank loan?

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.

What is the difference between invoice factoring and invoice discounting?

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.

Invoice factoring and invoice financing: What’s the difference?

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.

What are the different types of invoice factoring?

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.

How much does invoice factoring cost?

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.

Pre-qualify for invoice factoring

Apply now and receive approval in as little as one business day.

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*Some products are made available through Credibly’s network of external funding partners

**Rates are included in your daily payback quote to simplify repayments and account monitoring. Rates, pricing, requirements and other terms and conditions subject to change without notice.