Working Capital

Did you know that you if your business sells B2B or B2G you can sell your accounts receivable (AR) for immediate cash? This process is called “invoice factoring.”

For businesses selling on 30, 60, 90-day or longer terms, invoice factoring can solve important cash flow problems, like meeting payroll, paying suppliers on time, and covering overhead.

Factoring can also enable small businesses to take advantage of growth opportunities that require bridge capital.

Get funding options: book a phone appointment with us.

How does invoice factoring work?

You’ll submit your invoices and supporting documentation. If they are received by noon, you may be able to get funded the same day.

  1. Your invoices are purchased by our partners at a small discount
  2. You’ll receive approximately between 80% - 90% of the invoice value the same day or typically, within 24 hours.
  3. Once the customer pays their invoice you receive the remaining amount, minus a small fee for the service.

In invoice factoring, it’s your customer’s credit score that’s key.

Removing the credit risk: non-recourse factoring

Factoring that includes credit risk insurance is called “non-recourse factoring.”

With non-recourse factoring, even if your customer goes bankrupt, you won’t be liable for the payment.

By contrast, “full recourse” factoring holds you liable for the full amount of the invoice should your customer fail to pay.

All factoring deals brokered through Spearfish include credit risk insurance.