What Is Invoice Factoring?

Invoice factoring is a simple, flexible financing solution that allows businesses to turn unpaid invoices into immediate cash.

Instead of waiting weeks or months for customers to pay, you sell your invoices to a factoring company and receive an advance — typically 80%–90% upfront. Once your customer pays the invoice, you receive the remaining balance minus a small factoring fee.

Factoring is not a loan.
There is no debt, no fixed monthly payments, and no impact on your credit score.

How the Factoring Process Works

1. You issue an invoice to your customer as usual

2. Submit the invoice to AFS

3. Receive cash within 24 hours (up to 90% advance)

4. Get the remaining balance once your customer pays

It’s that simple.

Why Businesses Choose Invoice Factoring

Factoring is one of the fastest and most flexible ways to improve cash flow — especially for growing businesses.

Key Benefits:

• Immediate access to working capital

• No debt or long-term financial obligation

• Approval based on your customer’s credit, not yours

• Scales as your business grows

• No restrictive covenants or usage limits

Whether you’re covering payroll, purchasing supplies, or taking on new contracts, factoring helps you move faster with confidence.

Industries We Commonly Fund

Invoice factoring works best for B2B businesses that invoice customers on net-30, net-45, or net-60 terms.

We frequently work with:

• Staffing & medical staffing agencies

• Security guard companies

• Janitorial & cleaning services

• Manufacturing & distribution businesses

• Other service-based B2B companies

Not sure if factoring is right for your business? We’re happy to review your situation - no obligation required.

Factoring vs Traditional Business Funding

Feature	Invoice Factoring	Bank Loan	Line of Credit
Cash in 24–48 hours
No debt
Based on customer credit
Flexible funding
Long approval process

Factoring gives you speed, flexibility, and control - without tying up your business in long-term debt.

How Much Does Factoring Cost?

Factoring fees vary depending on invoice volume, customer credit, and payment terms.

Typical terms include:

• Advance rates: Up to 90%

• Factoring fees: Commonly 2%–4%

• No hidden fees or surprise charges

We believe in transparent pricing and custom solutions.

Trusted by Businesses Nationwide

"Highly Recommend! They are extremely professional and the friendliest people to work with! Very organized and happy to work with you on any factoring situation."
— Michael

"American Funding Solutions is the best funding company we have worked with. They get the funding to you in a timely manner. They also have someone working directly with our organization to make sure we get what we need."
— Halcyon Resources

"There is no better funding company to deal with. They are the best, and will help with your financial issues."
— Vito

"My company has been with American Funding for several years now and their support is a great peace of mind. American Funding is a great asset to us not only for funding but support as our company grows."
— Bud

"Exceptional Partner for our Agency. American Funding has been an invaluable partner in navigating our financial landscape, particularly during the challenges posed by the COVID-19 pandemic. Their commitment to our business is unmatched, demonstrating unparalleled flexibility, even when our clients were slow to pay... Their support has been a godsend, transforming them from just a service provider to a vital partner in our business journey.

In a world where it's easy to feel like just another account, American Funding's personal touch is refreshing and highly appreciated. I wholeheartedly recommend their services to any business seeking a reliable, supportive funding partner."

— Thomas

Invoice Factoring FAQs

Is invoice factoring a loan?

No. Factoring is not debt. You are selling invoices - not borrowing money.

How fast can I get funded?

Most clients receive funding within 24 hours of invoice approval.

Will factoring affect my credit?

No. Approval is based primarily on your customer’s credit, not yours.

Are there long-term contracts?

No long-term commitments are required. Funding is flexible.

What types of invoices qualify?

B2B invoices issued to credit-worthy customers on standard payment terms.

Get Paid Faster - Starting Today

If slow-paying customers are holding your business back, invoice factoring can help you move forward with confidence.