The factor advances you a large percentage of the invoice value immediately.
The process is straightforward and typically involves three main steps: INVOICE FACTORING
The factoring company often takes over the task of collections. The factor advances you a large percentage of
In "recourse" factoring, you must buy back unpaid invoices. 🔍 Factoring vs. Traditional Loans Invoice Factoring Traditional Bank Loan Approval Basis Customer creditworthiness Your business credit and history Speed Setup in days; funding in hours Takes weeks or months to approve Debt None (it is a sale of assets) Adds a liability to your balance sheet Collateral The invoices themselves Hard assets often required 🏁 Is Invoice Factoring Right for You? not your own.
Approval is based on your customers' credit, not your own.