Invoice Factoring for Small Businesses
Turn unpaid B2B or B2G invoices into immediate working capital without waiting 30, 60, or 90 days for customers to pay.
Available Funding
$1,000 - $5,000,000
Funding Structure
Per invoice or Ongoing
Typical Factoring Fee
Starting 1-3% factoring fee per 30 days*
Rates, advance amounts, and terms vary by factoring provider, invoice volume, industry, payment timeline, and customer creditworthiness.
What Is Small Business Invoice Factoring?
Small business invoice factoring is a flexible funding solution that converts unpaid B2B or B2G invoices into immediate working capital. Instead of waiting 30, 60, or 90 days for customers to pay, a business can sell eligible accounts receivable to a factoring provider and receive an advance based on the value of those invoices.
Coti Funding helps connect small businesses with invoice factoring companies from our network. Unlike a traditional business loan, qualification is based primarily on the value of the invoices and the creditworthiness of the customers responsible for paying them. Invoice factoring for small businesses can help improve cash flow, cover payroll, purchase inventory, manage operating expenses, and support growth while waiting for outstanding invoices to be paid.
Small Business Invoice Factoring Requirements
Basic Qualifications
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Active business with B2B or B2G invoices
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Verifiable outstanding invoices
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Creditworthy commercial or government customers
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Products or services already delivered
How Qualification Works
Invoice factoring approval is based primarily on the value of your invoices and your customers’ payment history not only your personal credit.
Minimum invoice volume and single-invoice factoring options vary by provider.
Documents & Timeline
Common documents include an application, accounts receivable aging report, sample invoices, customer information, and up to four months of business bank statements.
Some applications may be reviewed within 24–48 hours after all documents are received.*
Benefits of Invoice Factoring for Small Businesses
Invoice factoring helps small businesses unlock cash tied up in unpaid B2B or B2G invoices, providing flexible working capital without waiting for customers’ payment terms.
1. Improve Cash Flow Faster
Access working capital without waiting 30, 60, or 90 days for customers to pay.
2. Funding Based on Receivables
Qualification focuses primarily on eligible invoices and customer creditworthiness.
3. No Traditional Monthly Payments
The factoring provider collects payment directly from the customer when the invoice becomes due.
4. Flexible Factoring Options
Single-invoice, spot, or ongoing invoice factoring may be available depending on the provider.
5. Streamlined Review Process
Complete applications may be reviewed quickly after invoices and customer information are verified.
6. Support Everyday Business Needs
Use available working capital for payroll, inventory, operating expenses, or business growth.