What is invoice factoring?

How does invoice factoring work? What are the benefits?

M
Written by Marketing Team
Updated over a week ago

Invoice factoring is a financing method offered by FundThrough that enables your business to get access to the full amount of your unpaid invoices in a matter of days, instead of waiting for the payment terms of your customers.

When your business generates an invoice, the factor (FundThrough) purchases the right to collect payment on that invoice by agreeing to pay you the invoice's face value less a discount. FundThrough pays 100% of the invoice face value immediately, less our one time fee. Repayment aligns with when your customer pays.

Who is the ideal candidate for invoice factoring?

You might be a fit for FundThrough if you meet all the following requirements:

  • Outstanding invoice of at least $100K in accounts receivables or invoices to one customer

  • Invoice other businesses (B2B) or government agencies

  • Invoices are for completed work (with an expected due date)

  • No construction or real estate

  • No explicit liens on receivables that you aren’t willing to have removed

What are the benefits of invoice factoring?

  • Access your funds in a matter of days

  • Only pay fees when you factor an invoice

  • Fund amounts from $100,000 to millions of dollars

  • Repayment aligns with when your customer pays

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