Invoice Factoring
Get cash flow by using unpaid invoices as collateral.
Turn unpaid invoices into instant cash flow.
Get immediate funds without waiting for payment terms.
- Up to 100% of the invoice value
- No personal credit requirement
- Funded within 24 hours
- Low documentation
- Rates as low as 0.5% per month
Won’t impact your credit
Rated
on Trustpilot
Business owners love us because we treat them like family and provide instant cash flow for their invoices.
Simple online process
Your time is valuable. Our online application takes just 2 minutes to get approved and funded.
Dedicated lending expert
Your Configure Capital advisor does all your paperwork and you get money in your bank account the same day.
What Is Invoice Factoring?
Invoice factoring, or invoice financing, allows you to borrow money from a lender using unpaid invoices as collateral.
Factoring is a flexible business financing option that instantly lets you receive cash based on your outstanding accounts receivables. A lender will provide you with an upfront payment of up to 100% of the total value of the invoice. Any remaining balance is paid to you once the invoice clears.
Since invoice factoring is based on the credit history of the invoiced business, there are no personal credit requirements. Invoice factoring is a great way for small businesses and startups to get immediate cash for late and unpaid invoice payments.
Benefits of Invoice Factoring
Online invoice factoring has made it easier than ever for small business owners to access working capital quickly. Factoring isn’t technically a loan like a traditional bank loan — it’s an upfront cash advance on your unpaid invoices.
Instant Access to Capital
Get a quick cash infusion without debt or giving up business equity. This allows you to cover any cash flow issues or pursue growth opportunities. We’ll go through the application process to ensure you get the funds you need in as few business days as possible.
Serve as Collateral
Your accounts receivable are the collateral. No additional collateral is needed to secure invoice financing.
Transparent Rates and Terms
Transparency is critical to understand your discount rate. Your Configure Capital adviser makes understanding your factoring fee and payment terms simple and clear. We walk you through the factoring process and ensure no hidden fees.
High Approval Rate
Configure Capital compares 75+ factoring companies to identify the lowest factor rate possible. We then walk you through the pros and cons of each provider to help you make the right decision.
No Personal Credit Requirement
Approval for invoice financing is based on the creditworthiness of the business you have outstanding invoices for. As such, a credit check isn’t required, and there are no personal credit score requirements. Business eligibility for invoice factoring services is typically high.
Meet your Configure Capital advisors
We make sure you’re getting the best fast business loan, and set your company up for success. See how it works →
Minimum Requirements
Here are the basic requirements to qualify for invoice factoring. Even if you have bad credit, your Configure Capital advisor can get you funded.
$10,000 in monthly revenue
Your business must be earning at least $10K per month in a business bank account.
No Personal Credit Requirement
You can get approved with either good or bad credit scores. But keep in mind that the better your credit rating, the better factor rate you’ll get on your invoices.
Over 6 months in business
Your company should be operational for at least six months. This shows factoring companies that your business is sustainable.
Have a business bank account
Your Configure Capital adviser will need 3 to 4 months of your most recent bank statements to verify income.
Small Businesses ❤️ Configure Capital
Configure Capital helped me leverage my invoices
My company gets paid by the state and it takes 60-90 days to get paid. I worked with both Michael and Bryan. We were able to leverage my accounts receivable to secure the working capital needed for day-to-day operations. I’m able to pay off the credit line with no prepayment penalties. Their line of credit program was exactly what I needed.
Manik C.
Got money for my unpaid invoices instantly!
We were stuck because of unpaid invoices, but Configure Capital helped us out big time. They gave us the cash we needed fast. Super thankful for their easy process.
Karizma M.
I’ve been using Configure Capital for 4 years now
Waiting on payments is tough, but Configure Capital makes it easier to get money upfront. They turned our waiting game into cash. The team was friendly and explained everything simply.
Justin Paul
How Does Invoice Factoring Differ From a Business Loan?
Factoring isn’t a traditional small business loan — it’s alternative financing through the sale of an asset (the invoice amount or receivable). Essentially, the factor is purchasing the right to collect on an invoice or receivable when it’s paid for a fee.
Because financing companies are counting on your customers to pay, they’re more concerned with your customers’ credibility. Invoice factoring companies can collect payment directly or indirectly from your customers. Factoring could help your business get working capital upfront if your business has creditworthy customers.
Factoring providers generally offer recourse or nonrecourse factoring. With recourse factoring, it’s up to your company to settle the debt with your customer if an invoice is unpaid or late. With nonrecourse factoring, the factoring company absorbs the debt of the unpaid invoice or late payment. This will be clarified in your invoice factoring agreement.
The goal is for your business to receive operating capital while waiting for customer payments. Factoring is common in certain industries, such as trucking, staffing, and wholesale.
How Is Factoring Used To Improve Cash Flow?
Immediate funding from invoice financing can be used to grow your business. Here are the most common ways business owners use financing:
- Buying or leasing new equipment
- Payroll and taxes
- Operating expenses
- Hiring new employees
- Opening a new location
- Invest in advertising and marketing
- Assisting with cash flow problems
- Paying off credit card debt
- Managing unanticipated business expenses
- Pandemic-related costs
Alternatives to Invoice Factoring
Here are common alternative cash flow options to factoring that we’ve provided business owners. Your Configure Capital advisor will guide you to make the best decision for your specific needs.
You deserve low factor rates and an honest lender who has your back.
FAQs about Invoice Factoring
Want to know more about invoice factoring? You’re not alone. Here are simple answers to common questions from business owners like you.
How does invoice factoring work?
Accounts receivable are paid to a third-party company. The outside company works directly with customers to collect any due payments. After paying the factoring company, the business receives funds minus additional fees for the services.
How are invoice factoring and invoice financing different?
The distinguishing factor is who’s responsible for collecting payments from customers. With invoice factoring, businesses outsource debt collection to a third-party source, known as a factor. With financing, the business owner is responsible for dealing directly with customers to ensure invoices are paid. This form of financing relies much more heavily on your direct customer relationships.
What are the Pros of invoice factoring?
The main benefit of using this method is to free up cash flow. Factoring provides quick access to funds. You can optimize working capital that would otherwise be tied up while waiting for customers to make payments.
However, at Configure Capital, we strive to provide you with funding whether you have excellent or poor credit. If you have questions about your credit history, call us and talk to an advisor to explore your options.
What are the Cons of Invoice Factoring?
Factoring can come at a higher price tag than other financing options. Some business owners may prefer to pursue funding alternatives to save on costs.
Types of businesses we finance
Configure Capital provides invoice factoring to any business located in the United States. Here’s just a few of them:
Ready to get money for unpaid invoices?
Get approved for invoice factoring today and have money in your bank account in as little as 24 hours. No obligation and prequalify without affecting your credit!
