Invoice Factoring

Get Cash for Unpaid Business Invoices

Waiting for customers to pay can put pressure on your business cash flow. Invoice factoring may help eligible businesses access funds sooner. It lets a business sell unpaid invoices to a factoring company in exchange for cash.

US Trust Business Loans and Alternative Capital Funding helps businesses explore funding options for their needs.

What Is Invoice Factoring?

Invoice factoring is also called accounts receivable factoring. A business sells eligible unpaid invoices to a factoring company. The company pays an agreed amount upfront, usually less than the full invoice value.

The factoring company then collects payment from the customer. The amount you receive and the fees you pay depend on the agreement.

This type of funding may help businesses that need cash for daily costs or new projects.

How Does Invoice Factoring Work?

The process often follows these steps:

Send an invoice: Your business completes work and bills the customer.
Submit the invoice: You send eligible invoices to the factoring company.
Receive funds: The provider advances an agreed portion of the invoice value.
Customer pays: The customer pays according to the agreed process.
Receive the balance: You may receive the remaining amount after fees, based on your agreement.

Terms vary by provider. Review the full agreement before you proceed.

Benefits of Invoice Factoring

Invoice factoring may help businesses manage cash flow while they wait for customers to pay.

Access cash sooner: Use funds tied up in unpaid invoices.
Cover daily costs: Help pay for wages, supplies, and other expenses.
Support growth: Use available funds for eligible business projects.
Manage payment gaps: Reduce the wait between billing and receiving payment.
Plan operations: Keep work moving while you manage customer payments.

Benefits depend on your invoices, customer payment habits, fees, and contract terms.

Which Businesses May Qualify?

Invoice factoring may suit businesses that sell goods or services on credit. It can be useful when customers pay after work is complete.

Industries that may explore this type of funding include:

Construction: Manage costs while waiting for approved invoices to be paid.
Trucking: Cover fuel, repairs, and other operating costs.
Manufacturing: Pay for materials and production needs.
Staffing: Manage payroll while waiting for client payments.
Wholesale: Support stock purchases and regular business costs.

Eligibility varies by provider and program. A funding specialist can help explain the requirements for your business.

Invoice Factoring Costs and Rates

The cost of invoice factoring depends on several factors. These may include invoice value, customer credit, payment time, and the provider's fees.

US Trust lists rates that may start at 0.75% per month and vary by credit and business stability. Actual rates and terms may differ based on review and approval.

Before accepting an offer, ask about:

The advance amount.
Factoring fees and other charges.
The time allowed for customer payment.
Any reserve or holdback.
The total amount you will receive.

Compare the full cost with other funding options before making a decision.

Is Invoice Factoring Right for Your Business?

Invoice factoring may help if your business has unpaid invoices and needs working capital. It may not suit every company.

Before applying, review your customer payment terms and the value of your invoices. Check whether the fees fit your budget. Also, understand who will collect payment from your customers.

Compare invoice factoring with a business loan or line of credit. Choose an option that fits your cash flow and repayment needs.

Explore Invoice Factoring with US Trust

US Trust Business Loans and Alternative Capital Funding helps businesses explore funding options for working capital and growth.

If unpaid invoices are slowing your business, our team can discuss your funding needs and explain the next steps. Eligibility, rates, and terms depend on your business and the program.

Apply for Invoice Factoring

Ready to explore your options? Prepare your invoice details, business records, and estimated funding needs before you apply.

Contact US Trust Business Loans and Alternative Capital Funding to discuss invoice factoring and other possible funding options.

Review all fees, payment terms, and contract conditions before accepting an offer.