Invoice factoring is a financial tool in which businesses sell their commercial accounts receivable at a discount to a financial institution (factoring company) in exchange for immediate cash funding. The factoring company buys the invoice from you at a lower percentage than the face value, and then collects the full amount when the receivables are due. This is not a loan, but the sale of an asset, in this case, of the invoice.

If your customer is a creditworthy company, your company does not need to qualify for a loan. This means that we at Invoice Factoring Corp. are more focused on the ability of your customer to pay than your company’s financial status.