B2B Factoring

Business-to-Business Factoring is a financial transaction where a company sells its accounts receivable (invoices) to a factoring firm at a discount. This allows you to access working capital without waiting 30, 60, or even 90 days for customer payments.

Is B2B Factoring Right for Your Company?

Some businesses offer early payment discounts (e.g., 2% for payment within 10 days), hoping to accelerate cash flow. But most customers won’t bite—because they’re managing their own cash constraints.

That’s why factoring is a more reliable solution. You focus on growing your business and increasing sales. We focus on delivering the working capital you need to do it.

B2B Factoring Benefits

• Improve Business Cash Flow — Convert eligible unpaid B2B invoices into working capital instead of waiting weeks for customer payments.
• Meet Payroll on Time — Maintain reliable payroll while customers remain within their normal payment terms.
• Pay Suppliers and Vendors — Keep important vendor relationships strong without waiting for outstanding invoices to be collected.
• Take On Larger Orders or Contracts — Access working capital to support the expenses associated with new business opportunities.
• Manage Net-30 to Net-60 Payment Terms — Offer competitive payment terms without allowing receivables to place as much pressure on day-to-day cash flow.
• Purchase Inventory and Materials — Use improved cash flow to replenish inventory or purchase materials needed to fulfill new orders.
• Cover Operating Expenses — Maintain working capital for insurance, transportation, equipment and other business expenses.
• Support Business Growth — As eligible invoice volume increases, factoring can provide additional funding capacity to support expansion.

What Types of Businesses Can Use B2B Invoice Factoring?

B2B invoice factoring can be used across a wide range of industries where businesses provide goods or services to other businesses on credit terms. This can include staffing companies, manufacturers, distributors, wholesalers, commercial service companies, suppliers, transportation-related businesses and many other B2B industries.

The important distinction is that the company generates eligible invoices to creditworthy business or commercial customers for goods delivered or services performed.

Grow Without Waiting for Customers to Pay

Growth can actually increase cash-flow pressure for a B2B company. More customers and larger contracts can mean higher payroll, inventory, materials and operating expenses before the resulting invoices are paid.

Invoice factoring can help convert eligible receivables into working capital sooner, allowing businesses to pursue new opportunities without having to wait for previous customer invoices to be collected.