Financing
Invoice factoring
Get paid now on invoices your customers will pay in 60 days
Sell your open receivables at a discount and stop financing your customers' payment terms out of your own pocket. Approval leans on your customers' credit, not just yours.
At a glance
- Amount
- Up to 90% of invoice face value
- Term
- Per invoice, until your customer pays
- Speed
- Advance in 24 – 48 hours of verification
- Cost
- A discount fee per invoice, tied to days outstanding
Best for: B2B and government suppliers, staffing, freight and trades on net terms
Eligibility
Who qualifies
| Criteria | What we typically look for |
|---|---|
| Invoices | B2B or B2G invoices |
| Customers | Creditworthy customers |
| Time in business | Typically 3+ months |
Pricing
What it costs
A factoring fee, typically a percentage of the invoice for each 30 days it is outstanding, disclosed before you sign.
With recourse factoring, you buy back any invoice your customer does not pay. With non-recourse factoring, the factor absorbs that credit risk for a higher fee.
How it works
How invoice factoring works with Fuse
Send your invoice aging report and the invoices you want funded.
We verify the invoices with your customers.
You receive up to 90% of face value upfront.
The remainder, less the fee, releases when your customer pays.
What you need
- B2B or government customers
- Invoices for work already delivered
- No existing lien on your receivables
- Creditworthy customers
A good fit when
- Your cash is trapped in net-30 to net-90 terms
- You are growing faster than your collections
- Your customers are larger and slower than you
Probably not when
- You sell direct to consumers
- Invoices are disputed or partially delivered
- You need funds against future, unbilled work
Questions
Invoice factoring FAQs
How does factoring work?
You sell an unpaid invoice, receive typically 80–90% of its value upfront, and get the remainder, minus the fee, when your customer pays.
Factoring vs merchant cash advance?
Factoring is based on specific invoices and your customers' credit. A cash advance is based on your future sales and deposits. Factoring is usually cheaper for B2B businesses.
What is the advance rate?
Typically 80–90% of the invoice value, depending on your industry and customers.
Recourse vs non-recourse?
Recourse means you cover invoices your customer fails to pay. Non-recourse means the factor takes that risk, at a higher fee.
Will my customers know?
Usually, yes. Payments are typically redirected to the factor, although some programs are handled discreetly.
How fast?
Once your account is set up, invoices are typically funded within days.
Will my customers know?
With standard notification factoring, yes — payments are remitted to a lockbox in our name. Non-notification programs exist for larger, seasoned accounts.
What if a customer never pays?
Under a recourse facility the invoice comes back to you. Non-recourse coverage against customer insolvency can be quoted on approved accounts.
Related reading
Keep reading
Other options
Not quite the right tool?
We place six products. If another one fits your situation better, we will say so.
Working capital, without the waiting room
One short application, three bank statements, and a decision the same business day. Applying will not affect your credit score.