Question 1

What is invoice factoring?

Accepted Answer

Invoice factoring is a financial transaction where businesses sell their accounts receivable (unpaid invoices) to a third-party factoring company at a discount in exchange for immediate cash. Instead of waiting 30, 60, or 90 days for customers to pay, you receive 80-95% of the invoice value upfront, with the remaining balance paid once your customer settles the invoice, minus the factoring fee.

Question 2

How quickly can I get approved for invoice factoring?

Accepted Answer

Most businesses receive approval within 24-48 hours. Unlike traditional bank loans that can take weeks or months, invoice factoring approval focuses primarily on your customers' creditworthiness rather than your business credit history. Once approved, you can typically receive funding within 24 hours of submitting invoices.

Question 3

What does invoice factoring cost?

Accepted Answer

Invoice factoring typically costs between 1-5% of the invoice value, depending on factors like your industry, invoice volume, customer creditworthiness, and payment terms. For example, on a $10,000 invoice with a 3% fee, you would pay $300. This is a one-time fee, not a monthly interest charge.

Question 4

Do I need good credit to qualify for invoice factoring?

Accepted Answer

No, your personal or business credit score is not the primary qualification factor. Invoice factoring companies focus on your customers' creditworthiness and payment history. This makes factoring accessible to startups, businesses with limited credit history, or companies that have been declined for traditional bank financing.

Question 5

What industries can use invoice factoring?

Accepted Answer

Invoice factoring works for virtually any B2B business that invoices customers with payment terms. Common industries include trucking and transportation, staffing agencies, manufacturing, wholesale distribution, construction, professional services, and healthcare services. The key requirement is that you invoice creditworthy businesses or government entities.

Invoice Factoring FAQ

General Questions

Eligibility & Qualification

Costs & Fees

Process & Timeline

Working with Zeus Commercial Capital

Still Have Questions?

Invoice Factoring FAQ

General Questions

What is invoice factoring?

How is invoice factoring different from a business loan?

What types of businesses benefit most from invoice factoring?

Eligibility & Qualification

Do I need good credit to qualify for invoice factoring?

How long do I need to be in business to qualify?

Can B2C businesses use invoice factoring?

Is there a minimum revenue requirement?

Costs & Fees

What does invoice factoring cost?

Are there hidden fees I should know about?

Is factoring worth the cost?

Process & Timeline

How quickly can I get approved for invoice factoring?

How does the invoice factoring process work?

What documentation do I need to apply?

Working with Zeus Commercial Capital

Why should I work with a factoring broker instead of going directly to a factor?

How do I get started with Zeus Commercial Capital?

Still Have Questions?