You sell unpaid invoices to a factor for an advance (often 70–90%), the customer pays the factor, and you receive the rest minus the fee.
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Invoice factoring turns unpaid customer invoices into cash within days. You sell the invoices to a factoring company, which advances most of their value now and collects from your customer later, charging a fee for the service and the wait.
Amount to request
$85,000.00
Funding range$25K to $5M
*Sample amounts shown. Your actual offer depends on your business and is reviewed before approval.
Net cash, total payback and payment shown before you sign.
Advances, lines of credit and second-position options in one place.
A person reviews your revenue, time in business and bank activity, often within hours.
You can apply at 500; stronger credit opens more products.
Fast decisions. Applying takes about 5 minutes.
A short application. A soft credit pull to start.
We review revenue, time in business and bank activity, not just a credit score.
You see the amount, the schedule and the full repayment amount before you sign.
Funding in as little as 24 hours for qualified businesses.
The process usually works like this. You complete work or deliver goods to a business customer and issue an invoice with, say, 30- or 60-day terms. You submit the invoice to the factor, which verifies it with the customer. The factor then advances a percentage of the invoice, often around 80% to 90%, within a day or two. When the customer pays the factor, you receive the remaining balance minus the factoring fee.
Fees are typically a percentage of the invoice value that can increase the longer the invoice remains unpaid. For example, a fee of 2% for the first 30 days and an additional amount for each period after. Because cost depends on how fast your customers pay, factoring is cheapest for invoices to reliable, prompt payers.
Approval depends mainly on your customers, not your own credit. A small business with a weak credit score but large creditworthy customers can often factor easily. In recourse factoring, you must buy back invoices the customer does not pay; in non-recourse factoring, the factor absorbs certain credit losses in exchange for higher fees. Many factors require you to notify customers to pay the factor directly.
Factoring suits B2B businesses with slow-paying commercial or government customers: staffing, trucking, manufacturing and wholesale. It does not work for businesses selling to consumers. If your revenue is consumer-facing or you do not want customers involved, revenue-based funding sized on deposits is an alternative; MFE considers credit from 500 for those products.
For comparison, here is a revenue-based offer that does not involve your customers. Illustrative numbers.
| Amount funded | $25,000 |
| Factor rate | 1.30 |
| Total payback (amount × factor) | $32,500 |
| Fees deducted at funding (3%) | $750 |
| Net cash you receive | $24,250 |
| Weekly payment over 26 weeks | $1,250 |
| Same total as daily debits (~130 business days) | $250/day |
Illustrative numbers only. Your offer depends on your file; always compare net cash and total payback in writing.
| 1. Invoice the customer | Standard terms, e.g. net 30 |
| 2. Submit to factor | Factor verifies the invoice |
| 3. Advance received | Often 80-90% within days |
| 4. Customer pays factor | On original terms |
| 5. Rebate received | Remaining balance minus fee |
Good fit:
Probably not yet:
You sell invoices to a factor, receive an advance now and the remainder, minus a fee, when your customer pays.
Usually a percentage of invoice value that rises the longer the invoice is unpaid.
Mainly on your customers credit; your own credit matters less.
You must buy back invoices your customer does not pay.
Usually, because they are instructed to pay the factor directly.
Factoring does not apply; revenue-based funding is an alternative.
Example uses for illustration only.
Before you apply:
One secure application. A soft credit pull to start. No obligation to accept an offer.
Apply for Funding