Invoice Factoring: Turn Unpaid Invoices Into Working Capital

You’ve done the work, delivered the product, and sent the invoice. Now you wait 30, 60, even 90 days to get paid, while payroll, fuel, materials, and rent don’t wait for anyone. Invoice factoring closes that gap by turning the money your customers already owe you into cash you can use today.

At Equipment Finance Specialists (EFS), we’ve spent over 17 years helping business owners find the right financing. We’ve added invoice factoring to our offerings so we can support more of your business’s financial needs, backed by the same honesty, integrity, and full transparency our clients count on.

What Is Invoice Factoring?

Invoice factoring, also called accounts receivable financing, is a way for businesses to sell their unpaid invoices to a factoring company in exchange for immediate cash. Instead of waiting for your customers to pay, you receive an advance on the invoice value right away. When your customer pays, the factoring company releases the remaining balance, less the agreed-upon fees.

Unlike a traditional bank loan, factoring is based largely on the strength of your customers’ creditworthiness and the value of your invoices, not just your own credit history or time in business.

How Invoice Factoring Works

1. Deliver your product or service and invoice your customer as usual.
2. Submit the invoice to your factoring partner.
3. Receive your advance, which is a percentage of your invoice amount.
4. Your customer pays the invoice according to its terms.
5. Receive the remaining balance, minus the factoring fee.

Key Benefits of Invoice Factoring

Improved cash flow. Stop waiting on slow-paying customers. Factoring gives you predictable access to the cash tied up in your receivables so you can cover expenses and keep operations moving.

Fund growth without taking on traditional debt. Because factoring is the sale of an asset (your invoices) rather than a conventional loan, it can be a flexible way to fuel growth without adding monthly loan payments.

Easier qualification than bank financing. Approval focuses heavily on your customers’ payment history and the quality of your invoices. That makes factoring a strong option for startups, fast-growing companies, and businesses that don’t fit a bank’s strict lending box.

Financing that grows with you. As your sales increase, so does the amount of funding available. The more you invoice, the more working capital you can access, with no need to renegotiate a fixed credit line.

Take on bigger orders with confidence. Landed a large contract but need cash for materials or labor up front? Factoring helps you say yes to opportunities you might otherwise have to pass on.

Who Is Invoice Factoring For?

Invoice factoring is commonly used by B2B companies that invoice other businesses or government agencies, including:

• Manufacturing & Distribution
• Staffing and Professional Services
• Construction & Trades
• Transportation & Logistics companies
• And many more!

If your business sells on net-30, net-60, or net-90 terms, factoring might be a good fit for you.

Invoice Factoring vs. a Bank Loan or Line of Credit

Bank loans can offer low rates, but they often require strong credit, extensive paperwork, and a lengthy approval process. Factoring is typically built around your receivables, so it can be a faster and more accessible route when you need working capital now. The right choice depends on your goals, your customers, and your margins, and that’s where we come in.

Why Work With EFS? 

Many business owners tell us that other brokers and finance companies never fully explained their fees. We do things differently. We believe you deserve to know every cost, every term, and every payoff  structure before you commit.

Minimum Requirements

• Must be a B2B company selling on terms
• Your services rendered or product delivered are on terms of 30-90 days

Frequently Asked Questions

Is invoice factoring a loan?
No. Factoring is the sale of your invoices to a third party for an advance, rather than a traditional loan.

What do I need to submit to apply?

To determine preliminary approval status, we just need you to complete an application form and send over your Accounts Receivable Aging Report.  We will need to review additional documents prior to finalizing the transaction.

How fast can I get funded? 

Typically within  3 – 7 business days after submitting the application and completing the required paperwork, verification, & account setup, but it can take longer depending on the file.

What does invoice factoring cost?

Costs vary by lender, invoice volume, and customer payment terms.  Our invoice factoring specialist will walk you through the fees & terms, and answer any questions before you sign the agreement.

Ready to Turn Your Invoices Into Cash?

Don’t let unpaid invoices hold your business back. Click the Call button below and find out how invoice factoring can improve your cash flow.