Invoice Factoring
Sell your B2B invoices for instant cash — we handle collections
Convert outstanding B2B invoices to immediate cash at a small discount (1–5%), with collections handled for you.
Overview
Invoice factoring sells your outstanding B2B invoices to a factor at a small discount (typically 1–5%) for immediate cash, while the factor handles collections. This is not a loan — no debt is added to your balance sheet. For example, an IT services company might factor $150K of invoices and receive $142K upfront. Factoring is ideal for B2B businesses that need fast cash and want to outsource collections, and for companies that may not qualify for traditional financing due to short operating history or uneven cash flow.
Key Benefits
Immediate cash — often within 24 hours
No new debt on your balance sheet
Collections handled by the factor
Available to businesses with limited credit history
Ideal For
B2B companies with creditworthy customers
Staffing and IT services firms
Transportation and logistics companies
Businesses wanting to outsource collections
How It Works
A clear, structured process from first call to funded.
Invoice Submission
You submit eligible B2B invoices to the factor for review.
Advance
The factor advances 85–95% of the invoice value within 24–48 hours.
Collections
The factor collects payment from your customers on the invoice due date.
Reserve Release
When the customer pays, the factor releases the remaining balance less the discount fee.
Articles & Insights
Deep dives from our capital advisory team to help you make informed financing decisions.
How Invoice Factoring Fees Actually Work
Factoring fees include a discount rate plus any reserve holdback. We explain how to read a factoring quote and compare it to other financing options honestly.
Recourse vs. Non-Recourse Factoring: What Is the Difference?
Recourse factoring is cheaper but you repay if a customer defaults; non-recourse protects you from customer bankruptcy. Here is how to choose based on customer risk.
Will Factoring Damage My Customer Relationships?
A professional factor communicates respectfully and preserves your brand. We explain how to choose a factor that protects your customer relationships.
Invoice Factoring Case Studies
Real engagements, real outcomes. See how we have structured invoice factoring for clients like you.
IT Services Company Factors $150K for $142K Upfront
IT Services Provider
The Challenge
An IT services company had $150K in outstanding net-45 invoices but needed cash immediately to meet payroll and take on a new contract.
The Teal Bay Solution
Teal Bay arranged invoice factoring that advanced $142K (95% less a small discount) within 48 hours, with the factor handling collections on the outstanding invoices.
The Outcome
Client met payroll, accepted the new contract, and used factoring as a rolling facility — converting invoices to cash within days of billing.
Frequently Asked Questions
Straight answers to the questions we hear most.
No. Factoring is the sale of an invoice at a discount — it is not debt and does not appear as a liability on your balance sheet. This is one of its key advantages.