Invoice Factoring for Small Business: Turn Unpaid Invoices into Fast Cash
That’s where invoice factoring comes in. At Lending Valley, we help you unlock the money trapped in your unpaid invoices so you can pay expenses, seize growth opportunities, and keep operations running smoothly, all without taking on traditional debt.
Thankfully, modern and nontraditional financing options, like invoice factoring, are beneficial. They provide small business owners with an opportunity to leverage one of their most valuable assets into a predictable and consistent cash flow to build, grow, and leverage new opportunities.
What Is Invoice Factoring, Anyway?
Invoice factoring is not a traditional loan. Instead, it’s a financing solution where you sell your outstanding invoices to a factoring company in exchange for immediate cash.
Here’s how it works:
You issue an invoice to your customer (usually with 30–90 day terms).
Instead of waiting, you sell that invoice to us.
We advance you up to 85–90% of the invoice value within 24–48 hours.
We collect payment directly from your customer.
Once paid, you receive the remaining balance minus a small factoring fee.
Unlike bank loans, approval is based on your customers’ creditworthiness, not your own. This makes factoring ideal for businesses with limited or challenged credit history.
Works with bad credit – Decisions are based on your customers’ ability to pay, not your credit score.
While invoice factoring is powerful, it’s important to understand:
