Share your receivables
Your aging report and the customers you invoice.
Funding option
Invoice Factoring
Get paid now for work you've already done. Turn unpaid B2B invoices into cash now instead of waiting 30, 60 or 90 days for customers to pay.
Written and reviewed by the BFG Funds Editorial Team · Updated October 15, 2026
- Funding amount
- Up to 90% of invoice value
- Speed to funding
- A few days to set up, then 24–48 hours per invoice
- Typical term
- Each invoice, until your customer pays
- Typical cost
- A factoring fee, commonly about 1%–5% of the invoice per month outstanding
Overview
Is invoice factoring the right fit?
If your customers are businesses that pay on terms, a factoring company advances most of each invoice up front, collects from your customer, then sends you the balance minus its fee. Approval depends heavily on your customers' credit, not just yours.
- B2B companies with net-30 to net-90 customers
- Trucking, staffing, manufacturing and wholesale
- Fast-growing businesses whose receivables outpace cash
Pros
- Cash grows with your sales
- Approval based on your customers' credit
- No fixed loan payments
Cons
- Only works for B2B invoices
- Factor may contact your customers
- Fees add up if customers pay late
How it works
From application to funded in four steps
Customer credit review
The factor checks the credit of the businesses that owe you.
Submit invoices
Send invoices as you issue them and receive an advance on each.
Receive the balance
When your customer pays, the remaining amount minus the fee is released to you.
Typical time to funding for this program: a few days to set up, then 24–48 hours per invoice.
Invoice Factoring FAQ
What is the difference between recourse and non-recourse factoring?
With recourse factoring you must buy back invoices your customer doesn't pay. Non-recourse shifts some of that risk to the factor, usually for a higher fee and only for specific situations such as customer insolvency.
Will my customers know I'm factoring?
Usually yes — customers are asked to pay the factor directly. Some providers offer non-notification arrangements for larger, established businesses.
Is factoring a loan?
No. You are selling invoices at a discount, so it typically does not add debt to your balance sheet.
Other funding options
Business Line of Credit
Draw only what you need, when you need it. Revolving capital that refills as you repay.
Learn moreWorking Capital
Cover payroll, inventory and seasonal gaps with fast, unsecured short-term funding.
Learn moreTerm Loan
A lump sum with fixed payments and clear terms for planned expansion or big purchases.
Learn moreTell us about your business
A few details are all we need to start. A funding specialist will look at what your business needs and come back with the options that fit — usually the same business day. There's no obligation.
- Checking your options won't affect your credit
- You talk to one specialist, not a call center
- Many decisions come within 24 to 48 hours