Invoice Factoring
Your invoices. More immediate possibilities.
Access an advance of up to 90% of eligible unpaid invoices. The balance is released under the factoring agreement after customer payment and fees.
UNDERSTAND YOUR OPTIONS
Built around your business.
Sell eligible unpaid business invoices to a factoring company for an upfront advance, with the remaining reserve settled according to the agreement after customer payment and applicable fees. Advance rates and costs vary.
Program at a glance
- Advance up to 90% of eligible invoices
- Customer payment and reserves follow the agreement
- Factoring fees and recourse terms vary
Where it can fit
- Bridging customer payment terms
- Payroll and operating expenses
- Taking on additional customer work
What to consider
- Factoring generally involves selling eligible invoices at a discount.
- Customer creditworthiness, invoice verification, and disputes can affect eligibility.
- Understand reserves, recourse, notifications, minimum fees, and collections before proceeding.
GET PREPARED
A stronger start.
A clearer process.
Your advisor will confirm the documents required for your specific program. Here are common starting points.
Copies of eligible invoices and customer information
Business bank statements and financial information
A LITTLE MORE CLARITY
Invoice Factoring.
Your questions.
Will my customers be contacted?+
Many factoring arrangements involve invoice verification, customer notification, or payment to the factor. The specific process depends on the agreement.
What amount and terms can I qualify for?+
The lender determines available amounts, terms, costs, and any guarantees or collateral after reviewing the file. This page is an overview, not an approval or offer.
How do I get started?+
Start an application or speak with an advisor. We will review your goals, explain the documentation, and help you understand available financing options.
OTHER PATHS TO EXPLORE
More possibilities.
Working capital
Revenue-Based Financing
Revenue-based advance with daily or weekly remittances. Select programs offer same-day approvals and funding in as little as 24 hours.
Explore solutionFlexible accessBusiness Line of Credit
Revolving business credit lines up to $5 million. Draw as needed and generally pay interest on the amount used; draw and maintenance fees may apply.
Explore solutionWATCH & UNDERSTAND · 2:17
Invoice Factoring, explained.
Understand how eligible invoices may provide access to working capital and what the factoring agreement means for your business.
Educational overview from Abstract Capital Group LLC, which helps arrange financing through third-party providers. Eligibility, pricing, availability, and terms depend on the provider and transaction. This video is not an approval or commitment to fund.
Read the video transcript
You have completed the work and sent the invoice. Now you are waiting for payment while your own business expenses keep coming.
Invoice factoring may help turn eligible outstanding invoices into available cash sooner. In a factoring arrangement, a business sells qualifying receivables to a factoring provider under an agreed structure. This is different from simply taking out a standard business loan.
The quality of the invoices matters. A provider will want to understand the customers, the work or goods behind the invoices, and the payment expectations. An invoice that is disputed, already pledged elsewhere, or not yet eligible under the agreement may be treated differently from a completed, accepted receivable.
Consider a company that has delivered an order and expects its commercial customer to pay later. Factoring may change when that company receives some of its cash, but the owner still needs to compare the fees with the benefit of earlier access. It is also important to understand how the arrangement could affect communication with the customer.
Ask for a clear walkthrough of one example invoice under the actual proposal. How much would arrive initially? What amount would be held back, if any? Which charges could apply, and when would any remaining balance be released? Have the provider explain what happens if payment is late or a customer raises a dispute. These details help turn an unfamiliar structure into a decision you can evaluate.
For example, a business serving commercial customers on payment terms may need cash for payroll or the next order before those customers pay. A factoring provider may advance part of an eligible invoice’s value, with any remaining amount handled according to the agreement after collection and applicable charges.
Before proceeding, understand which invoices qualify, what fees apply, how customer payments are collected, and whether customers will be notified. Also ask who bears the risk if an invoice is disputed or unpaid. Your obligations depend on the actual contract.
Abstract Capital Group helps you organize your receivables information and explore whether a provider’s structure could fit your collection cycle. We help you focus on both the cash available today and the cost of accessing it.
If waiting on invoices is slowing down your next step, tell us about your business and how your customers pay.
CAPITAL FOR WHAT’S NEXT
Your next move starts here.
Let’s talk about your business, your goals, and the capital that can help you get there.
IMPORTANT PROGRAM INFORMATION
Before you move forward.
Factoring generally involves selling eligible receivables under the provider’s agreement. Advance percentages, reserves, discount fees, recourse, customer notification, collections, and release of reserves vary. The advance is not necessarily the final purchase price. Customer creditworthiness and invoice eligibility affect availability. Review total fees, recourse obligations, minimums, termination provisions, and applicable commercial financing disclosures.
Abstract Capital Group LLC provides financing assistance through third-party financing providers. Financing decisions, availability, rates, fees, and terms are determined by the applicable provider. Submitting an inquiry does not guarantee approval or funding. Program availability varies by state and provider.