Invoice Financing.
Turn outstanding invoices into working capital. Get paid now instead of waiting 30, 60, or 90 days. Funding amounts range from 60–100% of invoice value, with fees as low as 1–3%.
Overview
What is invoice financing?
Invoice financing — sometimes called accounts receivable (AR) financing — is a way for businesses to convert their unpaid invoices into immediate working capital. Rather than waiting 30, 60, or 90 days for customers to pay, you can access a cash advance of up to 90% of the invoice value, often within 24 hours.
There are two main forms: AR loans, where your invoices back a credit agreement you repay on set terms, and invoice factoring, where you sell your invoices outright to a third party who handles collection. Both are designed to solve the same problem — closing the gap between delivering your work and getting paid — but they work differently under the hood. Because qualification is based largely on the strength of your receivables rather than your personal credit alone, this type of financing tends to be more accessible than traditional bank loans, especially for B2B and service-based businesses.
Predictable Cash Flow
Smooth out your business operations with predictable cash flow by getting paid for your invoices right away.
Invoices Serve as Collateral
No need to tie up your assets — your outstanding invoices serve as collateral for the advance.
Funded in as Little as 1 Day
With streamlined processes for analyzing your data and invoices, you can get approved and funded within a day!
Eligibility
Do I qualify?
Minimum Qualifications
- 600+ personal FICO score
- At least 1 year in business
- $100,000+ in annual revenue
What You Need to Apply
- Basic info about your business
- Business checking account
- Last 3 months business bank statements
Applying is free and won't impact your credit score.
How It Works
How does accounts receivable financing work?
The core process is straightforward — you leverage your outstanding invoices to get capital now instead of later.
Invoice Your Clients
Continue delivering goods or services and issuing invoices as you normally would. Nothing changes in how you bill your customers.
Receive Immediate Funding
Submit your invoices to the financing company. They provide a cash advance — typically up to 90% of the invoice value — often within 24 hours.
Settlement on Payment
When your customer pays the invoice, the remaining balance (minus fees) is released to you. How collection works depends on whether you chose an AR loan or factoring.
Key Distinction
AR loan vs. invoice factoring
Both fall under the umbrella of accounts receivable financing, but they work very differently.
Accounts Receivable Loan
Your unpaid invoices serve as collateral for a loan. You stay in control of your customer relationships and collect payments yourself. You're obligated to repay the loan on the agreed terms — even if a customer is late or doesn't pay.
Invoice Factoring
You sell your invoices to a factoring company at a discount. They take over collecting payment from your customers directly. Because it's structured as a sale rather than a loan, there's no debt on your books — this is the more common form of invoice financing.
Pricing
What does it cost?
Processing Fee
A one-time fee when the advance is funded, typically around 3% of the invoice value.
Factor / Weekly Fee
An ongoing fee of roughly 1–2% per week on the outstanding balance until the customer pays the invoice in full.
Advance Rate
You typically receive up to 90% of the invoice value upfront. The remaining balance (minus fees) is released once the customer pays.
Step by Step
How to get invoice financing
Before applying, it's important to evaluate your funding needs. Here's a step-by-step guide to help you secure the necessary funds for your business.
Assess Your Funding Needs
Identify Your Purpose: Determine the specific reasons you need funding. Invoice financing is particularly useful for alleviating cash flow problems due to unpaid invoices. Clearly defining your purpose will help you understand the amount of financing you require.
Calculate the Amount: Make a detailed estimate of the total value of your unpaid invoices. This ensures you know how much advance you need to request and helps prevent borrowing more than necessary.
Evaluate Your Eligibility
Business Revenue: Lenders will assess your business's revenue to gauge your ability to repay the advance once your invoices are paid. Typically, they look for $100,000+ in annual revenue. However, lenders in our network often have more flexible requirements, advantageous for newer or smaller businesses.
Credit History: Your credit history is crucial in evaluating your financial reliability. Most lenders look for a personal FICO score of 600+. A higher credit score can improve your chances of receiving more favorable terms and lower fees.
Time in Business: Traditional banks usually require a business to be active for at least two years. In contrast, lenders in our network often require a minimum of one year. A longer operational history can convey stability to lenders, potentially leading to better terms.
Submit Your Application
Applying for invoice financing at Ridgepeak Capital is designed to be quick and easy. Our online application process can be completed in just a few minutes. You will be asked to provide the owner's information, general business information, the last three months of bank statements, identity verification documents, a business checking account, and details of the invoices you wish to finance.
Once submitted, our advanced algorithm swiftly evaluates your business profile to match you with ideal lenders. If approved, you will receive invoice financing offers to review and select the best option that suits your needs. This enables you to access the capital your business requires, often within as little as 24 hours.
Considerations
Pros & cons
Pros
- Funds can be available as quickly as within one day
- Easier to qualify for compared to traditional loans
- The invoices themselves serve as collateral
- Can be more affordable if customers pay on time
Cons
- Can be more expensive than other financing options
- If customers don't pay, you may be responsible for repaying the advance
Our Process
Our application process is easy
Apply Instantly
Fill out our quick and easy online application. It only takes a few minutes and won't affect your credit score.
Discover Your Options
Receive personalized funding offers, carefully curated to align with your business goals and requirements.
Get Funded
Choose the best funding offer for you and access the capital your business needs in as little as 24 hours.
FAQs
Invoice Financing FAQs
Common questions about leveraging your invoices for working capital.
Still have questions? Contact us →What's the difference between invoice factoring and invoice financing?
Invoice factoring and AR loans are both forms of accounts receivable financing, but they're structured differently. With factoring, you're selling your invoices outright — the factor takes over collection from your customers and there's no loan to repay. With an AR loan, your invoices act as collateral for a credit agreement — you keep control of collections but you're obligated to repay the loan on its terms whether or not customers pay on time. Factoring is the more common option and tends to be simpler to set up.
How much of my invoice value can I receive?
Most financing companies will advance up to 90% of the invoice value upfront. The remaining balance — minus the lender's fees (typically 1–3%) — is released to you once your customer pays the invoice. The exact advance rate depends on factors like your business profile, the size of the invoices, and the payment reliability of your customers.
What happens if my customer doesn't pay?
It depends on the type of financing. With an AR loan, you're responsible for repayment regardless of whether your customer pays — the invoices are collateral for a loan, not a sale. With factoring, it depends on whether the arrangement is "recourse" or "non-recourse." Recourse factoring (more common) means you're on the hook if the customer defaults. Non-recourse factoring shifts that risk to the factor but comes with higher fees. Either way, the terms will be clearly spelled out in your offer before you accept.
How fast can I get funded?
Invoice financing is one of the fastest funding options available. Once approved, you can receive your advance in as little as 24 hours. The streamlined process of analyzing your invoices and business data means you can access capital quickly to keep operations running smoothly.
Is invoice financing right for my business?
Invoice financing is ideal for B2B businesses and service-based companies that have outstanding invoices with payment terms of 30, 60, or 90 days. If your business regularly experiences cash flow gaps while waiting for customers to pay, invoice financing can bridge that gap. It's particularly useful for businesses with reliable customers who simply take time to pay.
Ready to unlock your unpaid invoices?
Apply in minutes. No impact to your credit score, and funding can arrive in as little as 24 hours.
Apply NowHave questions? Talk to an advisor.
Our business advisors can help you find the right financing for your needs.
Contact Us*The content provided on this page reflects the opinions and insights of Ridgepeak Capital, based on our research, methodologies, evaluations, and various additional considerations. This information is accurate as of the initial publication date. Ridgepeak Capital makes every effort to update and maintain the accuracy of this content, however, the information may differ from what you may find on other platforms. All information is presented without any warranty. We encourage you to carefully review the terms and conditions, relevant policies, contractual agreements, and all applicable details of the financial institution when considering offers. The ranges mentioned here do not represent pre-qualified offers. Ranges may be greater or less based on the information provided in your business financing application. Ridgepeak Capital may receive compensation from financial institutions reviewed on this page if you proceed to obtain business financing through them.