Invoice Financing: Turn Unpaid Invoices Into Working Capital in 24 Hours
Stop waiting 30, 60, or 90 days for customers to pay. REIL Capital advances up to 90% of your outstanding invoice value with an 85% approval rate, no personal credit check, and rates starting at just 0.5% per month.
Access up to 90% of your outstanding invoice value upfront. No need to wait weeks or months for customer payments. Get the cash your business needs to cover payroll, buy materials, and take on new contracts.
After approval, funds are deposited directly into your business account within one business day. Most clients receive their first advance within 1 to 3 days of submitting invoices.
Invoice financing approval is based on the creditworthiness of your customers, not your personal credit score. Even if your credit is fair or poor, you can qualify as long as your customers are creditworthy.
What Is Invoice Financing?
Invoice financing (also called invoice factoring or accounts receivable financing) allows businesses to convert outstanding invoices into immediate cash. Instead of waiting 30, 60, or 90 days for customers to pay, you sell your unpaid invoices to a factoring company at a discount and receive a cash advance within 24 hours.
Here is how the process works:
- You deliver goods or services to your customer and issue an invoice with net-30, net-60, or net-90 payment terms.
- You submit that invoice to REIL Capital's factoring network.
- You receive up to 90% of the invoice value deposited into your bank account within 24 hours.
- When your customer pays the invoice, you receive the remaining balance minus a small factoring fee (starting at 0.5% per month).
Invoice financing is not a loan. You are selling an asset you already own (the right to collect on an invoice), which means no new debt on your balance sheet and no impact on your personal credit score.
Benefits of REIL Capital Invoice Financing
Convert unpaid invoices into working capital within 24 hours. Bridge the gap between delivering work and receiving payment so your business never stalls waiting on slow-paying customers.
Invoice financing is not a loan. You are selling an asset you already own, which means no new debt recorded, no impact on your credit score, and no personal guarantee required.
As your invoicing volume grows, your available financing grows with it. Take on larger contracts and more clients knowing you can fund operations from day one without waiting for payment.
How to Get Invoice Financing With REIL Capital
Invoice Financing Requirements
Recourse vs. Nonrecourse Invoice Factoring
When evaluating invoice factoring options, one of the most important distinctions is whether the arrangement is recourse or nonrecourse.
Recourse Factoring: You agree to buy back any invoice that your customer fails to pay. Recourse factoring carries lower fees because the factoring company bears less risk. This is the most common type and works well when you have reliable, creditworthy customers.
Nonrecourse Factoring: The factoring company absorbs the loss if your customer fails to pay due to insolvency. Nonrecourse factoring carries higher fees because the funder takes on the default risk. This option is best for businesses working with new customers or those in industries with higher payment uncertainty.
REIL Capital's funding network includes both recourse and nonrecourse factoring options. Your funding advisor will help you determine which structure best fits your customer base, industry, and risk tolerance.
Invoice Factoring vs. Traditional Business Loans
Invoice factoring and traditional business loans both provide capital, but they work in fundamentally different ways. With invoice factoring, you are selling an asset (your unpaid invoice) rather than borrowing against your business. This means no new debt appears on your balance sheet, no personal credit check is required, and approval depends on your customers' creditworthiness rather than yours.
Traditional loans require strong personal credit, collateral, and months of paperwork. Invoice factoring can fund in 24 hours with minimal documentation. For many small and mid-size businesses, invoice factoring is the faster and more accessible option -- especially after a bank rejection.
Looking for other financing options? REIL Capital also offers business lines of credit, bridge financing, equipment financing, and SBA 7(a) loans.
Join our network of happy customers!
What Is Invoice Factoring?
Invoice factoring is a financing method where a business sells its outstanding invoices (accounts receivable) 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 up to 90% of the invoice value within 24-48 hours.
The factoring company then collects payment directly from your customer. Once the customer pays in full, you receive the remaining balance minus a small factoring fee, typically 1-5% of the invoice value.
How Invoice Factoring Works — Step by Step
- You deliver goods or services and issue an invoice to your customer
- You submit the invoice to the factoring company
- You receive an advance — typically 80-90% of the invoice value within 24 hours
- Your customer pays the factoring company on the original terms
- You receive the remaining balance minus the factoring fee
Unlike a loan, invoice factoring doesn't create debt on your balance sheet. You're converting an asset (the receivable) into cash — not borrowing against future revenue.
Invoice Factoring vs Invoice Financing
The terms are often used interchangeably, but invoice factoring and invoice financing work differently:
| Feature | Invoice Factoring | Invoice Financing |
|---|---|---|
| Who collects? | The factoring company contacts your customer | You retain collection responsibility |
| Customer awareness | Customers know you use a factor | Typically confidential |
| Advance rate | 80-90% of invoice value | 80-90% of invoice value |
| Best for | Businesses wanting to outsource collections | Businesses wanting to maintain customer relationships |
| Cost | 1-5% factoring fee | 1-3% monthly interest on advance |
Reil Capital offers both options. For most small businesses, factoring is the simpler choice — it eliminates the burden of chasing payments while providing faster access to cash.
Accounts Receivable Factoring
Accounts receivable factoring (also called AR factoring) converts your entire receivables portfolio — not just individual invoices — into working capital. This is ideal for businesses with a steady stream of B2B invoices that want ongoing cash flow rather than one-time advances.
Industries That Benefit Most
- Staffing agencies — weekly payroll obligations but monthly client payments
- Trucking & freight — fuel and driver costs upfront, broker payments in 30-60 days
- Construction — material and labor costs before progress payments arrive
- Manufacturing — raw material purchases funded weeks before customer payment
- Government contractors — payment cycles of 60-90+ days
With Reil Capital, AR factoring lines start at $10,000 and scale to $5M+. No long-term contracts required — factor only when you need to.
Invoice Factoring Rates
Understanding invoice factoring rates helps you compare providers and calculate the true cost of factoring. Rates typically fall between 1% and 5% of the invoice value, depending on several factors.
What Affects Your Factoring Rate
- Invoice volume — higher monthly volume usually means lower per-invoice rates
- Customer creditworthiness — invoices to Fortune 500 companies cost less to factor than invoices to startups
- Payment terms — net-30 invoices are cheaper to factor than net-90
- Industry — some industries have lower default rates and therefore lower fees
- Contract structure — spot factoring (per invoice) costs more than whole-ledger factoring
Example: Cost of Factoring a $50,000 Invoice
At a 2% factoring rate with a 90% advance:
- You receive: $45,000 upfront (90% advance)
- Factoring fee: $1,000 (2% of $50,000)
- Remaining balance after customer pays: $4,000
- Total cost: $1,000 for immediate access to $45,000
Invoice Factoring for Small Business
Small business invoice factoring is particularly valuable for companies that are growing faster than their cash flow can support. If your business is profitable on paper but cash-strapped because customers take 30-90 days to pay, factoring bridges that gap without adding debt.
Why Small Businesses Choose Factoring Over Loans
- No credit score requirement — approval is based on your customers' credit, not yours
- No debt on your books — factoring is a sale of assets, not a loan
- Grows with your business — your factoring line increases automatically as your invoicing grows
- Fast setup — approved in days, not weeks. No tax returns, no business plans required.
Reil Capital specializes in working with small businesses doing $10K-$500K in monthly invoicing. No minimums, no long-term commitments — factor when you need cash flow support and stop when you don't.
