Invoice Factoring
Leverage your unpaid invoices to generate cash flow for your business without creating debt
Invoice factoring, also called accounts receivable factoring, allows businesses to increase cash flow by selling some or all of their unpaid invoices at a slight discount and receiving payment within 24 to 48 hours, rather than waiting 30, 60, or 90 days for customer payments.
With Invoice Factoring, your business gets access to capital without increasing its debt. Once your account is set up, you can factor any invoice at any time and get paid within a day.
Established Businesses and Growing Ones
Whether the business is established or growing, i95 Capital will partner with you to secure the best available Invoice Factoring solution for you.
Invoice factoring is ideal for growing companies with Business-to-Business or Business-to-Government invoices with credit-worthy customers.
Flexible Terms to Maximize Your Opportunity
Advance Amount
Up to $15M monthly
Agreement Term
1 Year Renewable
Discount Rate
0.8%-3.5%/month, w/ shorter periods available after setup
The use of funds is not restricted. You can pick and choose clients to factor. There are no long, multi-year commitments. Agreement renews annually.
The Factoring Advance Amount is generally between 80% and 95% of the invoice value. The remaining 5%-20%, less the discount rate, is remitted to you upon receipt of your customer’s invoice payment.
Your discount rate is computed based on your accounts receivable aging, the invoice(s) sold, your customer’s profile, and your company’s profile.
The Accounts Receivable Purchase Agreement typically has a term of one year.
i95 Capital offers Invoice Factoring in all 50 US states.
When Invoice Factoring Makes Sense
- Make payroll before customer payments arrive
- Take advantage of early payment discounts
- Fulfill large orders without waiting for payment
- Bridge seasonal cash flow gaps
- Fund growth that outpaces customer payments
- Stock up for seasonal demand
How Lenders Evaluate Invoice Factoring Requests
Invoice factoring underwriting is driven primarily by the quality of the receivables being sold rather than the creditworthiness of the business selling them. Factors evaluate the credit profile of the customers who owe the invoices, the aging of the receivables, and the concentration of invoices across the customer base. A business with a diversified base of creditworthy customers and short collection cycles will receive better advance rates and lower discount rates than one with concentrated exposure to a single customer or invoices with extended aging.
The business’s own financial profile plays a secondary role. Factors want to confirm that the business is legitimate, that the invoices represent real, completed work, and that there are no disputes or offsets that could prevent collection. Businesses that maintain clean accounts receivable records and can provide current aging reports move through the approval process more efficiently.
Concentration risk is the factor’s primary concern after receivables quality. When a single customer represents a large share of the invoices being factored, the factor’s exposure to that customer’s credit risk increases significantly. Diversified receivables across multiple creditworthy customers are therefore preferred and typically result in better program terms.
How Does Invoice Factoring Work?
After processing your application, our advisors will send you the best invoice factoring offers available for your business. Your offers will include the advance amount and the discount rate.
Select your preferred invoice factoring financing offer, approve the application, and send it back to your i95 Capital advisor.
We will set up an Accounts Receivable Purchase Agreement for your company and provide you access to an online platform to submit the invoice(s) you wish to factor. It generally takes between 2 and 5 days to set up the account the first time.
Once set up, simply submit a copy of your invoice(s) to the factor at any time. Within a day, you will receive the factoring advance, generally 80%-95% of the invoice amount, in your business checking account. When your client pays the invoice, the factoring reserve, the 5%-20% remaining portion of your invoice, less the periodic factoring fee, is transferred to your account. Enjoy the cash flow flexibility your invoice factoring provides.
How to Get Started with Invoice Factoring?
Apply on your own
- Start the application process by completing the invoice factoring online application and submitting copies of your aging Accounts Receivable report.
- The application is easy and without commitment.
Or, we can assist
- Complete our contact form and select Application Assistance in the Inquiry Type, and a representative will call you promptly. i95 Capital assists you every step of the way.
Either way, after receiving your completed financing application, our advisors will promptly review the information and the documents you included and submit the file for processing.
