Invoice factoring for businesses that wait 30 to 90 days to be paid
Advance most of an invoice's value today and collect the balance when your customer pays.
Financing is provided by third-party lenders. Capital Ally is not a lender. Terms and eligibility vary.
At a glance
- Typical amount
- 70 to 95 percent of invoice value
- Typical term
- Per invoice, 30 to 90 days
Ranges are typical for this type of financing. Your amount, term and pricing depend on the lender and your business profile.
How this financing works
Factoring sells or borrows against your receivables. The factor advances most of the invoice value, collects from your customer on the normal terms, then releases the remainder minus a fee. Approval depends on your customers' credit more than your own, which makes it accessible to newer businesses with strong commercial clients.
It is common in trucking, staffing, manufacturing, wholesale and government contracting, anywhere that net-30 to net-90 terms are standard and payroll is weekly. Capital Ally matches you to factors that specialize in your industry and offers both recourse and non-recourse structures.
Common business uses
Weekly payroll
Fund payroll from invoices that will not pay for 45 days.
Take on larger contracts
Accept the big order without worrying about carrying the receivable.
Supplier discounts
Pay suppliers early and capture early-payment discounts that outweigh the factoring fee.
What lenders typically look for
General guidelines for this type of financing. Each lender sets its own requirements, and meeting them does not guarantee an offer.
- Invoices to creditworthy business or government customers
- Work that is complete and invoiced, not progress billing
- No existing lien on receivables, or one that can be subordinated
- Business credit is secondary; the customer's credit carries the file
Compare with other options
Questions about invoice factoring
All questionsWill my customers know?
In standard factoring the factor collects directly and customers are notified. Confidential factoring exists for some industries.
Recourse or non-recourse?
Recourse means you buy back an invoice the customer never pays. Non-recourse shifts that risk to the factor at a higher fee.
What does it cost?
Fees are a percentage of the invoice per period outstanding. A customer that pays in 30 days costs less than one that pays in 90.
Capital Ally
Considering invoice factoring?
Check eligibility in a few minutes, then compare the offers you receive by their full cost before you decide. Checking does not affect your credit score.