This hypothetical client completed large monthly contracts but waited 30–45 days for payment, making it difficult to cover ongoing labor and supply costs.
How Does Invoice Factoring Work?
Simplifying Factoring
How Invoice Factoring Works
Our Process, Step by Step
Application
Submit your application, and we’ll review it quickly, typically providing a pre-approval decision within 24 hours.
Funding Access
Receive an immediate advance of 80–90% of your invoice value, helping you maintain consistent and reliable cash flow.
Collections
Our team takes care of collecting payments directly from your customers, saving you time and effort.
Final Payment
After your customer pays the invoice, we send you the remaining 10–20%, minus our agreed service fee.
By partnering with American Funding Solutions, they began submitting invoices weekly and gained faster access to funds tied up in receivables.
AFS provided funding within 48 hours of invoice submission, eliminating delays between finishing work and receiving payment.
With steady cash coming in, the company easily covered expenses, reduced financial stress, and focused on growing their business.
Calculate Your Cash Flow
Use our online factoring calculator to discover how AFS can create a smooth funding process for your business.
FREE Factoring Guide
You can download our FREE e-Book to learn more about how AFS provides quality factoring services to our client base.
Our Main Services
Payroll Funding
Supports rapid growth
Keeps capital flowing
Maintains payroll cycles
Read more about Payroll Funding
Purchase Order Funding
Fulfills large orders
Growth without debt
Builds supplier relationships
Read more about Purchase Order Funding
Frequently Asked Questions
You can typically get pre-approved within 24 hours. After you submit your application, we review your business and invoices, often providing funds within 1 day of approval.
You submit invoices after placing workers and completing payroll cycles. You receive an advance quickly, allowing you to pay employees on time while waiting for clients to settle invoices.
No, you can choose which invoices to submit. This flexibility allows you to manage cash flow on your terms while still benefiting from consistent access to working capital when needed.
Companies submit freight invoices after deliveries are completed. Funds go out within 24 hours, helping cover fuel, maintenance, and driver expenses without delays from broker or shipper payments.
Yes, but the process is handled professionally. We work as an extension of your business, maintaining clear and respectful communication with your customers throughout the payment cycle.
No, factoring is not a loan. You’re selling your invoices for immediate cash rather than taking on debt, which means there are no monthly loan payments or added liabilities.
After completing jobs or hitting billing milestones, contractors partner with us for fast access to cash. This makes it easier to handle labor, materials, and ongoing project costs while customers take time to pay.
