Unlock value from eligible B2B invoices
Invoice Factoring
A provider may purchase or finance qualifying invoices based in part on customer payment quality.
What it is
Understand the structure before comparing a provider's actual offer.
Invoice factoring can help businesses with extended customer payment cycles. Eligibility, advance rates, reserves, recourse, notice, collection arrangements, and fees vary by provider.
There is no single universal percentage, APR, or fee that applies to every business shown on this website. When the underlying provider publishes a general cost description rather than a fixed percentage, we use that description instead of inventing a rate.
The business presents eligible B2B or government invoices to a factoring provider.
The provider evaluates the invoices and, importantly, the payment quality of the business's customers or account debtors.
An advance may be provided against approved invoices. Customer payments are then directed or remitted according to the factoring agreement, with reserves and fees settled under that agreement.
When businesses explore it
Potential fit
B2B businesses with 30, 60, or 90 day receivables
Staffing, transportation, manufacturing, distribution, and service companies
Businesses growing faster than customer payment cycles
Companies with creditworthy commercial customers
What may be requested
Documentation
Accounts receivable aging
Copies of invoices
Customer information
Recent business bank statements
Corporate and ownership documents
Example in practice
How a business might use this structure.
A staffing company that invoices corporate customers on 30 to 60 day terms may use factoring to cover weekly payroll while waiting for those customers to pay. The quality of the invoiced customers can matter as much as the applicant's own credit profile.
What providers may consider
The underwriting conversation varies by applicant.
A factor commonly reviews the accounts receivable aging, invoice validity, customer concentration, debtor credit quality, dilution or disputes, existing liens, and the procedures used to bill and collect customers.
Before accepting financing
Compare more than the approved amount.
Commercial financing can use different pricing and payment mechanics. Read the provider's written documents as a complete package.
Compare advance rate, factoring fee, minimums, reserves, and termination provisions.
Understand whether the arrangement is recourse or non-recourse and what those terms mean in the actual agreement.
Confirm notification, lockbox, and collection procedures before proceeding.
Important financing information
October Capital Funding LLC helps businesses explore commercial financing and may refer eligible requests to independent third-party financing providers and commercial finance partners. Any financing decision, offer, pricing, documentation, and final terms are determined by the applicable provider. Submission of a request does not constitute approval or a financing offer.
Displayed program ranges and descriptions are current general examples based on third-party program materials and may change. The provider's actual written option, disclosures, and agreement control.
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