Invoice Factoring
Stop waiting 30, 60 or 90 days to get paid. Factor your unpaid invoices and get up to 90% of their value within 24 hours — approval based on your customers' credit, not yours.
- ✓$25K–$2M facilities
- ✓Up to 90% advanced in 24 hrs
- ✓Your FICO doesn't drive approval
- ✓Grows with your sales
How Invoice Factoring Works
You deliver the work and invoice your customer on net-30, net-60 or net-90 terms. Instead of waiting, you sell that invoice to Northwood. We advance you 80–90% of its value within 24 hours. When your customer pays, you receive the remainder minus a small fee. It's not a loan — there's no debt on your balance sheet and no fixed monthly payment.
Program Highlights
- Facilities from $25,000 to $2,000,000
- 80–90% advanced on each invoice within 24 hours
- Approval based on your customers' credit — FICO 500+ OK
- Funding grows automatically as your sales grow
- Recourse and non-recourse options available
- Free credit checks on your customers before you extend terms
Who It's Built For
Trucking companies, staffing agencies, construction subcontractors, manufacturers, wholesalers and distributors — any B2B business that invoices other businesses and waits to get paid. If slow-paying customers are keeping you from making payroll, buying materials or taking the next job, factoring closes the gap.
Factoring vs. a Line of Credit
A business line of credit is cheaper but requires 680+ credit and strong financials. Factoring approves on your customers' strength, funds faster, and scales automatically with your receivables — there's no credit limit to outgrow. Many owners factor while they build credit, then add a line of credit for lower-cost flexibility.
Compare your options: Working Capital Loans for Small Business: The Complete Guide
Frequently asked questions
- What is invoice factoring?
- Invoice factoring lets you sell your unpaid B2B invoices to a funder at a small discount. You receive 80–90% of the invoice value within 24 hours, and the remainder (minus a small fee) when your customer pays. It turns net-30, net-60 or net-90 terms into same-week cash.
- Can I get invoice factoring with bad credit?
- Yes. Factoring is underwritten on your customers' creditworthiness — the companies that owe you money — not your personal FICO. That makes it one of the most accessible working capital products for owners with bruised credit or limited history.
- How much does invoice factoring cost?
- Typical factoring fees run 1–3% of the invoice value per 30 days, depending on your customers' credit, invoice size and volume. There are no interest charges because factoring is a purchase of receivables, not a loan.
- Will my customers know I'm factoring?
- With standard (notification) factoring, your customers pay the factor directly and will know. We also offer non-notification arrangements for qualified businesses where payments still come to you. We'll walk you through both options.
- What industries use invoice factoring?
- Trucking and freight, staffing agencies, construction subcontractors, manufacturers, wholesalers, distributors and any B2B business that invoices other businesses on terms. Factoring is not available for consumer (B2C) receivables.
Get Paid on Your Invoices This Week.
Send us your aging report — decisions in 24 hours. Soft pull only.
- ✓ $25K–$5M available
- ✓ Funded in 2–5 business days
- ✓ All credit profiles considered
- ✓ No upfront fees, no prepayment penalties