Fast Cash Secrets Transform Cash Flow with Invoice Factoring

How Invoice Factoring Works

The process of invoice factoring is straightforward. A business sells its unpaid invoices to a factoring company, which then advances a percentage of the invoice value, typically between 70% to 90%. Once the invoice is paid by the customer, the factoring company releases the remaining balance to the business, minus a factoring fee. This fee can vary but generally ranges from 1% to 5% of the invoice value, depending on factors such as industry, invoice volume, and creditworthiness of the customers¹.