What Do I Need to Apply for Invoice Factoring — and What Does Onboarding Actually Look Like?
If you’ve never factored an invoice before, the word “application” probably brings back memories of the last time you sat across from a bank: a thick stack of forms, two years of tax returns, a personal credit pull that made you wince, and then three weeks of silence before someone said no.
We’ll say this up front so you can relax a little: factoring doesn’t work like…
Why Profitable Startups Still Run Out of Cash (And the Levers Most Never Touch)
I’ve spent more than thirty years watching small businesses either make it or fold. Here’s the pattern almost nobody warns you about: the company that fails usually isn’t the one losing money. It’s the one that ran out of cash while the books still showed a profit.
There’s an old line in finance — profit is an opinion, cash is a fact. Profit depends on accounting choices:…
Are We the Right Factoring Company for Your Startup? (An Honest Answer)
Most factoring companies will tell you they’re the best. I won’t, because “best” isn’t a real thing. The right factor for a $40-million oilfield services company isn’t the right factor for a two-truck carrier or an IT consultancy that just landed its first real client.
If you’re a newer company weighing this, it’s worth knowing whether your startup can use invoice factoring at all before you shop…
Do I Have to Factor All My Invoices, or Can I Pick and Choose?
Part of our Honest Answers series — straight talk about financing a growing business.
This question comes up early in almost every conversation, and it usually arrives with a little suspicion attached. People have heard that once you sign with a factor, everything you bill runs through them forever. That’s not quite right, but it’s not entirely wrong either — and the difference matters enough that you…
The Bank Said No. Your Growth Doesn’t Have to Wait.
Part of our Honest Answers series — straight talk about financing a growing business.
You did everything right. You landed the bigger customer, won the contract, or saw demand climb faster than you expected. So you went to the bank for a line of credit or a term loan to fund the growth — and the bank said no.
It stings, and it doesn’t always make…
The Growth Trap: How Staffing and IT Firms Run Out of Cash by Winning Great Customers
There’s a particular kind of failure that blindsides good companies. It doesn’t come from losing customers, botching a project, or getting undercut on price. It comes from winning — specifically, from landing the exact large, creditworthy, name-brand customer the founder has been chasing for years. The contract closes, everyone celebrates, and four months later the company can’t make payroll.
We call this the growth trap, and it’s…
How Much Does Invoice Factoring Cost — and How Is My Rate Determined?
Most of our clients pay an average discount rate of about 4.4% per invoice and receive an advance of up to 80% of the invoice’s face value up front. That’s the short answer to the first question almost every business owner asks us: what is this actually going to cost me? A lot of factoring companies get vague here. We’d rather just show you the math.
Your…
The Top Reasons Businesses Come to Us for Factoring, Ranked
Every factoring application has a line that asks why you’re applying. Most people write something like “working capital” or “cash flow.” That’s true — but it’s not the real story. The real story is the thing that sent you looking for a factoring company in the first place, usually late at night, after you’d run the numbers three times and they still didn’t work.
Those reasons matter,…
What Happens After the Invoice Is Paid?
When your customer pays the invoice, the factor releases your reserve — the portion that wasn’t advanced up front — minus the factoring fee, and the invoice is closed. On a $10,000 invoice where you received $8,000 upfront and the fee was $300, you’d get approximately $1,700 more for the invoice, ultimately collecting $9,700 of the $10,000. Knowing what happens at the end takes the mystery out of factoring…
