Accounts Receivable Factoring
Convert Outstanding Invoices into Immediate Working Capital
Get 70–90% of your invoice value within 24 hours — no debt, no waiting 30–90 days for client payment.
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Rates, terms, fees, and funding timelines vary by lender, applicant eligibility, and program requirements.
Accounts receivable factoring allows you to sell your outstanding B2B invoices to a factoring company at a discount in exchange for immediate cash. Instead of waiting 30, 60, or 90 days for customers to pay, you get the capital you need now. This is not a loan — it's a sale of an asset (your receivables) — which means it doesn't appear as debt on your balance sheet and doesn't require the same credit qualifications as traditional lending.
How factoring works: you deliver goods or services and invoice your customer, you sell the invoice to a factor at a small discount (typically 1–5% per month), the factor advances you 70–90% of the invoice value immediately, and when your customer pays, you receive the remaining balance minus the factoring fee. The advance rate and fee depend on your customers' creditworthiness, your industry, and your invoice volume.
This solution is especially powerful for B2B companies with creditworthy customers who pay slowly. Staffing agencies, manufacturers, wholesalers, distributors, transportation companies, and professional service firms are common factoring clients. If your business extends net-30, net-60, or net-90 terms to customers and your growth is constrained by the cash tied up in receivables, factoring can unlock that capital immediately.
There are two types of factoring: recourse and non-recourse. With recourse factoring, if your customer doesn't pay, you're responsible for repaying the factor. With non-recourse factoring, the factor assumes the risk of non-payment (typically for credit-approved customers). Non-recourse factoring costs more but provides protection against customer default. Let's Syndicate helps you understand which structure is right for your situation.
A Simple, Fast Process
Submit Your Invoices
Provide your outstanding B2B invoices and customer information. The factor evaluates your customers' creditworthiness.
Get Approved & Funded
Once your customers are credit-approved, the factor advances 70–90% of the invoice value to your account within 24 hours.
Customer Pays the Factor
Your customer remits payment directly to the factoring company according to the original invoice terms.
Receive the Reserve
When the invoice is paid, the factor releases the remaining balance (the reserve) to you, minus the factoring fee.
How Businesses Use This Financing
Staffing Agencies
Pay contractors and recruiters weekly while waiting 30–60 days for client invoice payment.
Manufacturing & Wholesale
Fund raw material purchases and production costs while waiting for distributor payments.
Transportation & Freight
Cover fuel, driver pay, and maintenance while waiting for broker and shipper remittances.
Professional Services
Maintain cash flow while waiting for corporate client payments on net-60 or net-90 terms.
Rapidly Growing Companies
Fund growth without taking on debt — factoring scales automatically as your invoice volume increases.
- Immediate access to cash — 70–90% of invoice value within 24 hours
- Based on customer credit, not yours — easier approval
- No debt on your balance sheet — it's a sale of assets
- Scales automatically with your sales growth
- No collateral required beyond the invoices themselves
- Ongoing facility available — factor invoices as you generate them
- Non-recourse options protect against customer non-payment
- Builds a track record that can lead to traditional financing
- ◆B2B invoices only (consumer invoices not eligible)
- ◆Creditworthy customers with good payment history
- ◆Minimum $10K monthly receivables (varies by factor)
- ◆Clean, undisputed invoices for delivered goods/services
- ◆Business verification and customer credit check
- ◆No existing liens on the receivables
- ◆Invoices typically must be due within 90 days
The Staffing Agency That Couldn't Make Payroll
How factoring turned $300K in outstanding invoices into same-week payroll
A staffing agency in Atlanta had landed a major contract with a Fortune 500 company — but the client paid on net-60 terms. The agency needed to pay 40 contractors every Friday, and after two months of funding payroll out of pocket, the owner was running out of cash. His bank declined him for a line of credit because the business was only 14 months old, even though the receivables were from a blue-chip client.
He came to Let's Syndicate and was matched with a factoring company that specialized in staffing. Within 48 hours, the factor had credit-approved the Fortune 500 client and advanced 85% of $300,000 in outstanding invoices — $255,000 deposited into the agency's account. The factor charged 2.5% per month, and the client paid within 58 days.
The agency used the factoring facility ongoing — every week, they submitted new invoices and received advances within 24 hours. The factor also handled collections, freeing the owner from chasing payments. Within eight months, the agency's consistent payment history and growing revenue qualified them for a traditional bank line of credit at a lower rate — a graduation path that the factoring relationship had made possible.
Result: $255K advanced in 48 hours. 85% advance rate, 2.5%/mo fee. Payroll met every week. Graduated to bank line of credit within 8 months.
The Right Factor for Your Industry Matters
Factoring companies specialize by industry — staffing, transportation, manufacturing, construction, medical, and more. A factor who understands your industry knows which customers are creditworthy, what advance rates are standard, and how to handle your specific invoicing structure. A generalist factor may decline your invoices or offer worse terms simply because they don't understand your business model.
Let's Syndicate matches you with factoring companies that specialize in your industry. Your single application reaches factors who understand your customers, your invoice cycles, and your cash flow needs. You compare advance rates, factoring fees, and contract terms from multiple providers — and choose the one that puts the most cash in your pocket for the lowest cost.
- Industry-specialized factors — staffing, transportation, manufacturing, medical, and more
- Compare advance rates (70–90%) and fees (1–5%/mo) from multiple factors
- Recourse vs non-recourse options explained and compared
- Factors who handle collections — freeing you to focus on growth
- A graduation path to lower-cost traditional financing as your profile strengthens
Common Questions About Accounts Receivable Factoring
Not necessarily. With notification factoring, your customers are informed that payments should go to the factor. With non-notification factoring (available from some providers), your customers continue paying you directly. Let's Syndicate helps you find factors who handle customer communication professionally.
With recourse factoring, you must repay the factor if your customer doesn't pay. With non-recourse factoring, the factor absorbs the loss (for credit-approved customers). Non-recourse costs more but protects you from customer default. The right choice depends on your customers' creditworthiness and your risk tolerance.
Factoring fees typically range from 1–5% per month, depending on your industry, invoice volume, customer credit, and whether you choose recourse or non-recourse. The advance rate (70–90%) determines how much you receive upfront; the fee determines the cost. Comparing offers from multiple factors ensures you get the best rate.
Yes, with most factors. You can choose which invoices to factor — typically those from your slowest-paying customers or those you need immediate cash for. Some factors require a minimum monthly volume, but many offer flexible, per-invoice factoring with no long-term contracts.
Initial funding typically takes 24–72 hours (including customer credit checks). Once your facility is set up, subsequent invoice advances are funded within 24 hours — often the same day. This makes factoring one of the fastest ongoing financing solutions available.
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Let's Syndicate is a business funding marketplace. All credit decisions, rates, terms and outcomes are determined by participating lenders, investors or third-party providers.