Comparison
These get confused constantly, but they solve opposite problems. One unlocks money customers already owe you. The other borrows against sales that have not happened yet.
✓ Checking what you qualify for does not affect your credit score.
The short answer: If your money is stuck in unpaid invoices, factoring is cheaper and structurally cleaner because you are collecting what you are already owed. If you take payment at the point of sale, factoring is not available to you and an advance is the relevant product.
Do you send invoices and wait, or do you get paid when you serve the customer? Contractors, staffing agencies, freight carriers and wholesalers invoice and wait — factoring exists for exactly that gap. Restaurants, salons, auto repair and retail get paid immediately, so there is no invoice to factor.
A freight company waiting 60 days on a broker payment and a restaurant needing to cover payroll are not the same problem, and they do not take the same product.
A short application. No impact to your credit score to see what you qualify for.
We review revenue, time in business and bank activity — not just a credit score.
You see the amount, the term and the total cost before you sign anything.
Money in your account, typically the next business day after signing.
No. It is the sale of an invoice at a discount, so it converts an asset rather than creating debt.
No. Restaurants are paid at the point of sale, so there are no receivables to factor.
Factoring, usually, because it is secured by an invoice a creditworthy customer already owes.
Often yes with factoring, because the factor may collect directly. An advance is invisible to your customers.
Sometimes, but stacking obligations is what underwriting scrutinises hardest. Disclose everything up front.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
