The basic steps
You deliver goods or services and invoice your customer. You sell that invoice to a factor at a discount. The factor advances 80%–95% to you within days. Your customer pays the factor on the original due date. The factor remits the reserve balance minus fees.
- You deliver goods or services and invoice your customer.
- You sell that invoice to a factor at a discount.
- The factor advances 80%–95% to you within days.
- Your customer pays the factor on the original due date.
- The factor remits the reserve balance minus fees.
Who uses factoring?
Staffing agencies, manufacturers, distributors, freight brokers, medical vendors, and government subcontractors — any business with creditworthy commercial customers and payment terms.
Factoring vs a loan
A loan adds debt and fixed payments. Factoring ties funding to sales activity — when invoice volume drops, funding need often drops too.
Advanced Funding Group offers programs nationwide from Pennsylvania. Start with our services overview or how to choose a factor .