Invoice factoring is a financial solution that allows businesses to convert their unpaid invoices into immediate cash. Instead of waiting 30, 60, or even 90 days for customers to pay, you can access up to 97% of the invoice value within 24 hours.
How Does Invoice Factoring Work?
The process is straightforward:
You deliver goods or services to your customers and issue invoices as usual.
You submit invoices to a factoring company like Factoring Express.
You receive an advance — typically 80-97% of the invoice value within 24 hours.
Your customer pays the factoring company directly when the invoice is due.
You receive the remainder minus a small factoring fee.
Who Uses Invoice Factoring?
Invoice factoring is particularly popular among:
Trucking and transportation companies who face long payment cycles from brokers and shippers
Staffing agencies that need to meet weekly payroll before clients pay
Healthcare providers waiting on insurance reimbursements
Government contractors dealing with slow-paying agencies
Any B2B business with creditworthy customers but cash flow challenges
Factoring vs. Traditional Loans
Unlike bank loans, invoice factoring:
Doesn't create debt on your balance sheet
Doesn't require perfect credit — approval is based on your customers' creditworthiness
Scales with your business — the more invoices you have, the more funding you can access
Provides faster funding — often within 24 hours vs. weeks for bank loans
Is Invoice Factoring Right for Your Business?
Invoice factoring might be a good fit if you:
Have reliable B2B or B2G customers
Experience cash flow gaps due to slow-paying customers
Need capital to fuel growth without taking on debt
Want a flexible funding solution that grows with your business
Ready to see if your business qualifies? Contact Factoring Express today for a free consultation.