(800) 949-0401 Invoice Financing
- Crestmont Capital
- Asset Based Financing
- Invoice Financing
Cash flow gaps created by slow-paying customers are one of the most common challenges small and mid-sized businesses face. Invoice financing solves this by converting your outstanding receivables into working capital in as little as 24 hours. Instead of waiting 30, 60, or 90 days for clients to pay, you access up to 95% of your invoice value immediately. Crestmont Capital connects businesses with invoice financing programs that are fast, flexible, and designed to support your growth without taking on traditional debt.
Invoice financing is a short-term borrowing arrangement where businesses use their outstanding invoices as collateral to access cash. The lender advances a large percentage of the invoice value upfront, and when your customer pays the invoice, the remaining balance (minus fees) is remitted to you. Unlike a traditional loan, your eligibility is based largely on the creditworthiness of your customers, not just your own business credit or history.
This makes invoice financing particularly powerful for businesses that have strong, creditworthy clients but experience delays in receiving payment. B2B industries like staffing, logistics, construction, manufacturing, and consulting frequently rely on invoice financing to maintain steady operations while awaiting payment on completed work.
| Feature | Invoice Financing | Invoice Factoring |
|---|---|---|
| You collect payment? | Yes | No - factor collects |
| Customer notified? | Typically no | Yes |
| Who owns the invoice? | You (as collateral) | The factoring company |
| Best for | Businesses protecting customer relationships | Businesses outsourcing collections |
| Advance rate | 80-95% | 70-90% |
Crestmont Capital offers fast approvals and competitive rates. Apply in minutes.
Apply Now →| Component | Typical Range | Notes |
|---|---|---|
| Advance Rate | 80%-95% | Percentage of invoice value paid upfront |
| Fee Rate | 1%-5% per 30 days | Based on invoice amount and customer creditworthiness |
| Minimum Receivables | $10,000+ | Varies by program; some have no minimum |
| Funding Speed | 24-48 hours | After invoice verification |
| Contract Type | Spot or revolving facility | Spot for occasional use; revolving for ongoing needs |
Invoice financing is ideal for B2B businesses with reliable commercial clients and receivables tied up in long payment cycles. If your customers are large corporations, government agencies, or established businesses, their creditworthiness can unlock favorable financing terms for you. It's especially effective for businesses that experience rapid growth but face cash flow timing gaps as they wait on outstanding invoices to clear.
For businesses seeking broader working capital options, Crestmont Capital also offers small business financing, lines of credit, and commercial financing solutions tailored to your specific needs.
Invoice financing (also called accounts receivable financing) is a funding method where a business uses its outstanding invoices as collateral to receive an advance of cash. Instead of waiting 30-90 days for clients to pay, you get most of the invoice value upfront.
Most invoice financing programs advance 80% to 95% of the invoice face value. The remaining amount (minus fees) is paid when your customer settles the invoice.
Invoice financing uses invoices as collateral for a loan while you retain control of collections. Invoice factoring involves selling your invoices to a factoring company, which then collects payment directly from your customers.
Invoice financing is one of the fastest business funding options. Once approved, advances on new invoices typically arrive within 24 to 48 hours of submission.
Typical fees range from 1% to 5% of the invoice value per 30-day period. The exact rate depends on your customer's creditworthiness, invoice volume, and your business profile.
With invoice financing, your customers typically do not know. You retain the customer relationship and continue collecting payments yourself. Invoice factoring is different and may involve lender communication with your customers.
Most B2B (business-to-business) invoices qualify. Invoices must be for completed work or delivered goods, issued to creditworthy commercial or government customers, and not past due or already pledged as collateral elsewhere.
Minimums vary by lender. Crestmont Capital works with invoice financing programs starting as low as $10,000 in total receivables. There's no fixed per-invoice minimum in most programs.
Yes. Invoice financing is based primarily on your customers' creditworthiness rather than your business's age or credit score. This makes it accessible to newer businesses with strong commercial clients.
Invoice financing is popular in staffing, transportation, manufacturing, wholesale distribution, construction, consulting, and any B2B service business where payment terms of 30-90 days are standard.
Fast decisions. Competitive terms. Dedicated funding advisors. Apply now with Crestmont Capital.
Get Funded Now →Disclaimer: The information provided on this page is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.
