Turn Unpaid B2B Invoices Into Cash in 24 Hours
Sell your outstanding B2B invoices to a factor and receive 80-95% of the invoice value in cash immediately, without taking on debt. Repayment happens when your customer pays.
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How Much Funding Are You Looking For
Typical advance rate
Time to first funding
Factoring fee per 30 days
Quick Definition
Invoice factoring is the sale of unpaid B2B invoices to a third party (the factor) at a discount, providing immediate cash flow without taking on debt.
BizBee Funding helps B2B businesses access factoring facilities through a vetted network of factors — with transparent fees, no impact to credit to evaluate options, and no upfront cost.
- Advance rates typically 80-95% of invoice value
- Funding within 24 hours after invoice verification
- Factoring fees typically 1-5% per 30 days
Overview
What invoice factoring can do for your business
Invoice factoring is the sale of your unpaid B2B accounts receivable to a third party (the factor) at a discount. The factor advances you 80-95% of the invoice value upfront, collects from your customer at maturity, and remits the balance back to you minus a small factoring fee (typically 1-5% per 30 days). Because you're selling an asset rather than borrowing, factoring doesn't add debt to your balance sheet, which makes it especially useful for businesses that have strong receivables but limited bank-credit appetite. Factoring works best when your customers are creditworthy businesses (not consumers) that pay on net-30 to net-90 terms.
Who This Is For
Who invoice factoring is built for
Business Type
B2B businesses — staffing, transportation, manufacturing, distribution, commercial services, that invoice creditworthy companies on net terms.
Revenue Level
$10K+ in monthly B2B invoicing with consistent customer payment behavior.
Situation / Use Case
You have strong receivables but cash is tied up 30-90 days while you need to pay payroll, suppliers, or fund growth now.
Benefits
Why business owners choose invoice factoring
This option is designed to solve practical capital problems while staying flexible enough for everyday business decisions and growth plans.
Funding in as fast as 24 hours after invoice verification
No debt added to your balance sheet, you're selling an asset
Approval based on your customer's credit, not yours
Scales automatically — more invoices, more available capital
No fixed monthly payment, cost only applies to the invoices you factor
Often comes with AR collection support included
24-Hour Funding
Verified invoices typically advance within one business day.
Customer-Credit-Based
Approval depends on your customers' creditworthiness, not yours.
Scales With Sales
Available capital grows automatically as your invoicing grows.
Use Cases
When invoice factoring makes the most sense
From daily operations to expansion opportunities, these are common ways business owners put this funding to work.
B2B companies with customers on 30-90 day terms
Businesses use invoice factoring for this type of need when timing, flexibility, or preserving cash flow matters more than waiting on slower traditional financing.
Bridging payroll and supplier payments before customer pay-dates
Businesses use invoice factoring for this type of need when timing, flexibility, or preserving cash flow matters more than waiting on slower traditional financing.
Replacing a high-cost MCA or line of credit when receivables are strong
Businesses use invoice factoring for this type of need when timing, flexibility, or preserving cash flow matters more than waiting on slower traditional financing.
Funding rapid growth that's outpacing your cash collection cycle
Businesses use invoice factoring for this type of need when timing, flexibility, or preserving cash flow matters more than waiting on slower traditional financing.
Taking on larger contracts that would otherwise stretch cash flow
Businesses use invoice factoring for this type of need when timing, flexibility, or preserving cash flow matters more than waiting on slower traditional financing.
When This Makes Sense
When invoice factoring is the right move
Ideal scenarios
- Your customers pay on net-30 to net-90 terms and that gap is straining cash
- You want to scale receivables without taking on debt
- You need to replace a more expensive MCA or daily-debit product
- You're winning larger contracts than your working capital can support
When it might not fit
- You sell to consumers (B2C), you have no qualifying receivables
- Your customers pay quickly already (under 15 days), the cost isn't worth it
- Your AR is concentrated in one slow-paying customer with credit issues
- Your AR is already pledged as collateral on existing debt
See if you qualify for invoice factoring
Soft credit pull, no obligation. Most owners finish the application in under 60 seconds.
Compare Options
How invoice factoring compares to other funding options
Compare speed, rates, approval difficulty, and flexibility side by side so you know exactly what you're choosing.
| Attribute | Invoice Factoring (BizBee) | Traditional Bank Loan | Typical Online Lender |
|---|---|---|---|
| Speed to funding | 24 hours after invoice verification | Bank AR lines: 30-60 days to set up | 1-3 days for MCA/LOC |
| Typical cost | 1-5% per 30 days on factored invoices | Cheapest if you qualify, but slow setup | Factor 1.20-1.40 (MCA), often more expensive |
| Approval basis | Based on your customers' credit, not yours | Based on your business credit and financials | Based on your revenue and bank deposits |
| Adds debt? | No, it's an asset sale, not a loan | Yes — AR line of credit is debt | Yes, MCAs and term loans are debt |
| Best for | B2B companies with long customer pay cycles | Established companies with bank relationships | Non-B2B revenue or no AR to leverage |
Comparison reflects typical industry ranges. Actual rates, speed, and terms vary by lender, credit profile, and business financials.
Qualifications
Do You Qualify for Invoice Factoring?
Review the common baseline requirements lenders consider when evaluating your business for this type of funding.
B2B business model (customers are other businesses, not consumers)
These qualification benchmarks help lenders quickly understand fit, funding potential, and the best structure for your business profile.
$10K+ in monthly invoices
These qualification benchmarks help lenders quickly understand fit, funding potential, and the best structure for your business profile.
Creditworthy customers on net-30 to net-90 terms
These qualification benchmarks help lenders quickly understand fit, funding potential, and the best structure for your business profile.
No major liens against your accounts receivable
These qualification benchmarks help lenders quickly understand fit, funding potential, and the best structure for your business profile.
Planning View
Get prepared before you apply
Having the right revenue history, bank activity, and business details ready can help you move faster and see stronger options.
FAQ
Frequently Asked Questions About Invoice Factoring
Answers to common questions about timing, approvals, requirements, repayment, and best-fit use cases.
Testimonials
How owners are using invoice factoring
Five real-world examples, rotating automatically every 10 seconds.
Our customers pay on net-60. Factoring gave us payroll-ready cash in 24 hours so we stopped sweating Fridays.
We replaced a daily-debit MCA with factoring and cut our financing cost by more than half.
Landed a contract twice the size of anything we'd done. Factoring made it possible without diluting equity.
Our facility scales with us. New invoices automatically increase what's available, no re-underwriting.
The collection support was a bonus, they handle AR follow-ups so our team can focus on delivery.
Keep exploring
Related funding resources
- How BizBee funding worksStep-by-step from application to funded — usually 24 to 48 hours.
- Business loan FAQRates, credit pulls, documents, repayment, and eligibility answers.
- Funding requirementsWhat lenders look at before approving a small business loan.
- Types of business loansCompare term loans, lines of credit, working capital, and more.
- Funding insights & guidesOwner-focused articles on cash flow, qualification, and growth.
Ready for Invoice Factoring?
Explore invoice factoring options, compare fit, and apply in minutes with a fast, SEO-friendly page built to answer the questions business owners ask before taking the next step.