What Is Invoice Factoring?
Invoice factoring is a form of accounts receivable financing where you sell your outstanding invoices to a funding company — like CashBridge — in exchange for immediate cash. Instead of waiting 30, 60, or 90 days for your customers to pay, you get the majority of that invoice value today.
The factor (us) advances you 80%–92% of the invoice value upfront. When your customer pays the invoice on its original terms, we release the remaining balance to you, minus a small factoring fee.
It is not a loan. There's no debt on your balance sheet, no personal guarantee required, and approval is based on your customers' creditworthiness — not yours.
Want to see what you'd receive for your invoices?
Try the Advance Calculator →Invoice Factoring vs. Bank Loans
Bank loans are slow, collateral-heavy, and nearly impossible for young businesses to access. Factoring is a different animal — here's how they compare:
| Factor | Invoice Factoring | Bank Loan |
|---|---|---|
| Time to funding | 24–48 hours | 30–90 days |
| Credit score required | Not primary factor | 700+ preferred |
| Collateral | Invoices only | Assets or personal guarantee |
| Debt on balance sheet | No | Yes |
| Approval rate | High (customer-based) | ~20–30% for small biz |
| Repayment | Customer pays invoice | Monthly loan payments |
| Scalability | Grows with your receivables | Fixed facility |
| Cost | 1%–5% per invoice | 7%–25% APR |
Factoring sound right for your situation?
Start Your Application →Who Qualifies?
Invoice factoring is designed for B2B businesses — companies that invoice other businesses (or government entities), not individual consumers. Here's the eligibility breakdown:
- ✓B2B invoices with net-30, 60, or 90 terms
- ✓$10K–$10M+ in monthly receivables
- ✓US or Canada-based customers
- ✓Customers with solid payment history
- ✓Invoices for delivered work (not future work)
- ✓Staffing, trucking, manufacturing, services, construction
- ✗B2C businesses (retail, consumer services)
- ✗Pre-revenue / no outstanding invoices
- ✗Invoices in active dispute
- ✗Progress billing before work is complete
- ✗Customers with poor payment track records
Not sure if you qualify? Take the 2-minute check.
See if You Qualify →Frequently Asked Questions
How fast is funding?
Most clients receive their advance within 24 hours of submitting approved invoices. Same-day funding is common for invoices under $500K with creditworthy customers. First-time setup (verification, account linking) takes 1–2 business days.
Will my customers know I'm using invoice factoring?
It depends on the structure. With disclosed factoring, your customer is notified via a Notice of Assignment and pays CashBridge directly. With confidential factoring, payments route through a dedicated account that looks like yours — your customers see no change. CashBridge helps you choose the right structure for your customer relationships.
What are the fees?
Factoring fees typically range from 1%–5% of the invoice value, charged per 30-day period the invoice is outstanding. Your rate depends on invoice volume, customer creditworthiness, and payment terms. There are no hidden origination fees, no monthly minimums, and no long-term contracts. Your rate is shown before you commit.
What industries qualify?
Invoice factoring works for any B2B business with outstanding invoices to creditworthy business customers. Common industries we serve include:
Staffing · Trucking & Logistics · Manufacturing · Wholesale Distribution · Construction (completed work) · IT & Consulting · Healthcare (B2B billing) · Government Contractors
How much can I get?
CashBridge works with businesses needing $10,000 to $10 million+ in receivables financing. The advance amount is typically 80%–92% of the invoice face value. Invoices due within 30 days receive higher advance rates (up to 92%). Volume and customer diversification can unlock additional rate bonuses — use our calculator to see your estimate.
Is my credit score a factor?
No. Invoice factoring is not a loan. Approval is based primarily on the creditworthiness of your customers (the invoice payers), not your personal or business credit score. This makes it accessible to businesses with limited credit history, recent startups, or those recovering from past credit issues — as long as you're invoicing solid customers.
Still have questions? Our team responds within 2 hours.
Talk to a Funding Advisor →Industry-Specific Guides
Every industry has unique cash flow challenges. We've written detailed guides for the three highest-volume factoring verticals — with industry-specific pain points, qualifying invoice types, and example rates.
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