Invoice Factoring

  • Up to 100% of invoice value
  • No personal credit requirement
  • Funded within 24 hours
  • Low documentation
  • Rates as low as 0.5% per month
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Invoice Factoring

Instant accounts receivable financing.

What is Invoice Factoring?

Invoice factoring, also known as invoice financing, allows you to borrow money from a lender by using unpaid invoices as collateral.

Factoring is a flexible financing option to get an instant infusion of cash based on outstanding accounts receivables. A lender will provide you an upfront payment of up to 100% of the total invoice value. Any remaining amount is also paid to you once the invoice clears.

Since invoice factoring is based on the credit rating of the invoiced business, there is no personal credit requirement.

Benefits of Invoice Factoring

Online invoice factoring has made it easier than ever for business owners to get quick access to working capital. Factoring isn't technically a loan -- it's an upfront advance on your unpaid invoices.

Instant access to capital

Get a quick infusion of cash without taking on debt or giving up business equity. This allows you to cover any cash flow issues or pursue growth opportunities.

Invoices serve as collateral

Your account receivables themselves are the collateral. So no additional collateral is needed to secure invoice financing.

Transparent rates and terms

Transparency is critical in invoice factoring. Your Clarify advisor makes understanding your factor terms simple and clear.

High approval rate

Clarify compares 75+ factoring companies to identify the lowest factor rate possible. We then walk you through the pros and cons of each offer to help you make the right decision.

No personal credit requirement

Approval for invoice financing is based on the creditworthiness of the business who you have outstanding invoices for. As such, there are no personal credit score requirements.

How Does Invoice Factoring Differ from a Business Loan?

Factoring is not a traditional business loan – it's the sale of an asset (the invoice or receivable). Essentially, the factor is purchasing the right to collect on an invoice or receivable when it's paid, in return for a fee.

Because factors are counting on your customers to pay, they are more concerned with your customers' credibility. Factoring companies can collect payment either directly or indirectly from your customers. If your business has creditworthy customers, factoring could help your business get working capital upfront.

The goal is for your business to receive operating capital while waiting for customer payments. Factoring is very common in certain industries, such as transportation, staffing and wholesale.

How is Factoring Used to Improve Cash Flow?

Immediate funding from invoice financing can be used for a wide variety of ways to grow your business. Here are the most common ways business owners utilize the financing:

  • Buying or leasing new equipment
  • Payroll and taxes
  • Operating expenses
  • Hiring new employees
  • Opening a new location
  • Invest in advertising & marketing
  • Covering gaps in cash flow
  • Manage unanticipated business expenses
  • COVID-19 and pandemic-related costs

Apply for Invoice Factoring

Frequently Asked Questions about Invoice Factoring

Account receivables are paid to a third party company. The outside company works directly with customers to collect any due payments. After the factoring company is paid, the business receives funds, less any fees for the services.
The distinguishing factor here is who is responsible for collecting payments from customers. With factoring, businesses outsource debt collection to a third party source, known as a factor. With financing, the business owner is responsible for dealing directly with customers to ensure invoices are paid.
The main benefit of using this method is to free up cash flow. Factoring provides quick access to funds. You can optimize working capital that would otherwise be tied up as you wait for customers to make payments.
Factoring can come at a higher price tag than other financing options. Some business owners may prefer to pursue funding alternatives to save on costs.

Invoice factoring at a glance

  • check Funding in as little as 24 hours
  • check No personal credit requirements
  • check Invoices / accounts receivables serve as collateral
  • check Minimal documentation required


  • keyboard_arrow_right 3 months of invoicing history
  • keyboard_arrow_right $300k in annual revenue
  • keyboard_arrow_right B2B businesses only

Note: These are general invoice factoring qualifications. Other information might be considered during your application. Your dedicated Clarify advisor will guide you through it!

Alternatives to factoring

Factoring business financing

"My company gets paid by the state and it takes 60-90 days to get paid. I worked with both Michael and Bryan. We were able to leverage my accounts receivable to secure the working capital needed for day-to-day operations. I’m able to pay off the credit line with no prepayment penalties. Their line of credit program was exactly what I needed."

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Get approved for invoice factoring today and have money in your account within as little as 24 hours. No obligation -- prequalify without affecting your credit!