Invoice Factoring
Stop waiting 30, 60 or 90 days to get paid. Factor your unpaid eligible B2B invoices to free up working capital for payroll, materials and your next order. Customer credit, invoice verification and program terms determine approval and funding timing.
- ✓$25K–$2M facilities
- ✓Up to 90% on eligible invoices
- ✓Customer credit is a key factor
- ✓Nationwide applications
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 a factoring provider. After approval and verification, you receive the agreed advance. When your customer pays, the reserve is released minus fees and contractual deductions. Factoring is generally a receivables sale rather than a conventional loan; accounting treatment and liability depend on the agreement.
Program Highlights
- Facilities from $25,000 to $2,000,000
- Advances up to 90% on eligible invoices, subject to program terms
- Customer credit and invoice quality are key underwriting factors
- Facility increases are subject to review and eligibility
- Recourse and non-recourse options available
- Ask about customer credit review before extending payment 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.
Invoice Factoring Across Texas, Florida and California
Northwood Capital Group LLC reviews applications nationwide, including Houston, Dallas and San Antonio in Texas, Miami, Orlando, Tampa and Jacksonville in Florida and Los Angeles, Long Beach and the Inland Empire in California. Applications can be reviewed remotely; these service areas do not imply a local branch in each city.
Before You Request a Factoring Quote
Prepare an accounts receivable aging report, sample invoices and proof of delivery or accepted work. Flag existing liens, disputed invoices, retainage and conditional construction payments. Confirm the advance, total fees, reserve release, customer notification and recourse terms in your written offer; not every invoice qualifies.
Factoring vs. a Line of Credit
A business line of credit may offer lower-cost revolving funding, depending on your credit, financials and the written offer. Factoring emphasizes eligible invoices and customer credit, but still has facility limits and customer concentration requirements. Compare total costs, repayment obligations and existing liens before choosing either option.
Compare your options: Invoice Factoring for Small Business: How It Works · Working Capital Loans for Small Business: The Complete Guide
Frequently asked questions
- What is invoice factoring?
- Invoice factoring is the sale of eligible unpaid B2B invoices to a provider. You receive an agreed advance after verification, with the reserve released after customer payment minus fees and contractual deductions. Approval and timing vary by account setup, invoice eligibility and program.
- Can I get invoice factoring with bad credit?
- Factoring may be available when owner credit is challenged because customer credit is a key underwriting factor. Providers can also review business history, owner credit, liens and invoice quality. Approval is not guaranteed by a credit score alone.
- How much does invoice factoring cost?
- Request a written quote showing the fee calculation, reserve, minimum-volume charges and any setup, wire or late-payment charges. Costs depend on customer credit, volume, payment timing and contract terms. A factoring fee is not the same as a loan APR.
- 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.
Request an Invoice Factoring Review.
Have your aging report and sample invoices ready. Approval and funding timing depend on verification and program terms.
- ✓ $25K–$5M available
- ✓ Funded in 2–5 business days
- ✓ All credit profiles considered
- ✓ No upfront fees, no prepayment penalties