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Receivables-Based Funding

Invoice Factoring — Turn Unpaid Invoices Into Immediate Cash

Stop waiting 30, 60, or 90 days for customers to pay. Compare advances against your invoices — eligibility, timing, and conditions depend on the factoring company.

No credit score impact

Invoice factoring (healthcare)

Funded
$90,000 on a $100,000 invoice
Term
Customer pays in 30–60 days
Payment
1.25% / week on the advance, one lump sum

If paid in 30 days, total payback $91,125.

Best option for fast bridge funding.

Recent example. Not a quote.

Factoring Programs

Flexible factoring options to match your volume and risk preferences.

Spot Factoring

No loan minimum or maximum

Terms: Per-invoice basis

Rates: Varies by lender and profile

  • Factor individual invoices as needed — no long-term commitment
  • Choose which invoices to factor and which to collect yourself
  • Ideal for occasional cash flow gaps or one-time large orders
  • No minimum volume requirements
  • Funding timing depends on the lender and invoice

Contract Factoring

No loan minimum or maximum

Terms: 6–24 month agreements

Rates: Varies by lender and profile

  • Lower rates through volume commitments — best pricing available
  • Dedicated account manager handles all collections professionally
  • Consistent cash flow with regular funding schedules
  • Scalable — your funding grows as your invoices grow

Recourse vs. Non-Recourse

Varies by program

Terms: Flexible

Rates: Recourse: lower fees / Non-recourse: higher fees

  • Recourse: you're responsible if your customer doesn't pay — lowest rates
  • Non-recourse: the factoring company absorbs the risk — higher fees but zero bad debt exposure
  • Choose based on your customer reliability and risk tolerance
  • Non-recourse ideal for new customer relationships
  • Most businesses start with recourse and transition as needed

Why Factor Through Pro Capital?

No Debt Created

Factoring sells receivables — it doesn't add debt to your balance sheet. Keep your borrowing capacity intact for future growth.

Customer Credit Matters, Not Yours

Approval is based on your customers' creditworthiness, not your personal or business credit score.

Invoice-based funding

Funding timing depends on the factoring company, invoice review, and required documentation.

Scales With Your Business

As your sales grow, your factoring capacity grows automatically. No need to reapply for higher limits.

Explore more financing options: Small Business Loans · Term Loans · Lines of Credit · SBA Loans

Invoice Factoring FAQs

Common questions about invoice factoring.

You submit invoices from creditworthy customers to a factoring company. They advance you 80–90% of the invoice value after reviewing your invoices. When your customer pays, you receive the remaining balance minus the factoring fee (typically 1–5% of the invoice amount).

No — factoring is not a loan and doesn't create debt on your balance sheet. You're selling an asset (your receivable) at a discount for immediate cash. This makes factoring attractive for businesses that want to avoid additional debt.

Yes, in most cases customers are notified because payment is redirected to the factoring company. However, many businesses across all industries use factoring, and professional factoring companies handle collections respectfully to preserve your customer relationships.

Factoring is popular in staffing, trucking/transportation, manufacturing, wholesale/distribution, construction, and professional services. Any B2B business that invoices customers on net terms can benefit.

A line of credit is revolving debt that requires credit qualification and regular payments. Factoring converts existing receivables to cash without creating debt. Lines of credit work better for general expenses, while factoring specifically solves slow-paying customer cash flow issues. Compare lines of credit here.

Work With a Team You Can Verify

Pro Capital is a U.S.-based small business funding broker, helping owners secure invoice factoring and other funding solutions. Learn about our team or contact us directly for personalized guidance from a real Pro.

Ready to Unlock Your Receivables?

Apply in under 60 seconds. No obligation, and no impact to your credit score.