Invoice Factoring & Accounts Receivable Financing (2026)
Invoice factoring turns your unpaid invoices into immediate cash. Instead of waiting 30, 60, or 90 days for customers to pay, you sell those outstanding invoices to a factoring company at a small discount and receive 80%–90% of the value upfront — often within 24 hours. Approval is based largely on your customers' creditworthiness, not just your own, and because you're selling an asset rather than borrowing, factoring doesn't add debt to your balance sheet. Slate Financial is a brokerage that matches B2B businesses to the right factor — with a soft credit pullthat doesn't affect your score.
See what you qualify for — 60 seconds →What is invoice factoring?
Invoice factoring turns your unpaid invoices into immediate cash. Instead of waiting 30, 60, or 90 days for customers to pay, you sell those outstanding invoices to a factoring company at a small discount and receive most of the value upfront — often within a day. It's a powerful tool for businesses whose growth is constrained not by sales, but by the lag between delivering work and getting paid.
Factoring is based on the creditworthiness of your customers, not just your own, which makes it accessible even to younger companies with strong clients. Slate Financial matches you with factors that fit your industry, invoice volume, and customer base, and structures the advance rate and fee so your margins stay healthy.
Best for B2B businesses with creditworthy customers that need to unlock cash tied up in 30-to-90-day invoices without taking on debt.
How invoice factoring works
- Submit your accounts-receivable aging report and sample invoices so the factor can assess your customers and volume.
- The factor approves your customers and sets an advance rate — typically 80% to 90% of each invoice's face value.
- You assign eligible invoices and receive the advance, often within 24 hours.
- Your customer pays the invoice directly to the factor on the normal due date.
- Once the invoice is paid, the factor releases the remaining balance to you, minus a small factoring fee.
Typical terms
| Term | What to expect |
|---|---|
| Advance rate | 80% – 90% of invoice |
| Facility size | $25K – $5M+ |
| Funding speed | As fast as 24 hours |
| Factoring fee | Small % per invoice |
| Facility range | $10K - $5M |
| Typical turnaround | 1 - 3 business days |
Slate Financial is a lending brokerage, not a direct factor — we match you to factors across our network and structure the advance rate and fee around your margins. Specific terms vary by factor, your industry, and your customers' credit.
Who qualifies
- B2B (or B2G) businesses that invoice other companies or government entities on terms
- Creditworthy customers who reliably pay their invoices
- Invoices for completed, deliverable work or goods (not pre-billing)
- Businesses of nearly any age — strong customers matter more than time in business
- Pre-qualify with a soft pull — no impact to check your options.
Pros and cons
Pros
- Fast access to cash tied up in receivables — no waiting on customer terms
- Approval based largely on your customers' credit, not just yours
- Scales naturally with your sales: more invoices means more available funding
- Not a loan — it doesn't add debt to your balance sheet
Cons
- The factoring fee reduces the total you collect on each invoice
- Your customers may interact with the factor on payment
- Works only for businesses that invoice other businesses on terms
Invoice factoring FAQ
Is factoring a loan?
No. You're selling your invoices for early payment, so factoring doesn't add debt to your balance sheet. There's no fixed monthly loan payment — the advance is settled when your customer pays the invoice.
Will my customers know I'm factoring?
In most arrangements your customer remits payment to the factor, so they're aware. Many factors handle this professionally on your behalf; non-notification programs exist in some cases and we can discuss the options.
How much of the invoice do I get upfront?
Typically 80% to 90% of the invoice's face value within about a day. The remaining balance, minus a small fee, is released to you once your customer pays.
Is Slate Financial a factoring company?
No. Slate Financial is a commercial-lending brokerage. We don't buy your invoices ourselves — we match you to the right factor (and other funding) across our network and help structure the advance rate and fee so your margins stay healthy.