Using invoice factoring to cover cash flow shortfalls

Compare short-term cash flow solutions for all industries.

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It’s common for businesses that rely on accounts receivables to run into cash flow problems. Invoices often aren’t due for 30-90 days, potentially leaving you without the capital you need to take on new work.

Factoring is one way to keep your company’s cash flowing, relying on your accounts receivables to qualify for an advance of what customers owe you. This short-term financing may be especially helpful if you’re not able to qualify for traditional business loans.

SharpShooter Funding Business Loan

  • Min. Loan Amount: $1,000
  • Max. Loan Amount: $300,000
  • Interest Rate: Starting at 5.49%
  • Requirements: Annual business revenue of $60,000
  • Borrow up to $300,000
  • Online loan application

SharpShooter Funding Business Loan

SharpShooter Funding offers loans up to $300,000 for small business owners who have been business for at least 100 days and can show a minimum of $5,000 in monthly deposits ($60,000/year).

  • Min. Loan Amount: $1,000
  • Max. Loan Amount: $300,000
  • Interest Rate: Starting at 5.49%
  • Requirements: Annual business revenue of $60,000
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Compare business loan providers that offer factoring services

Name Product Interest Rate Min. Loan Amount Max. Loan Amount Loan Term Minimum Revenue Minimum Credit Score
SharpShooter Funding Business Loan
5.49% - 22.79%
$1,000
$300,000
6 months - 5 years
$5,000 /month
450
SharpShooter Funding offers loans up to $300,000 for small business owners who have been business for at least 100 days and can show a minimum of $5,000 in monthly deposits ($60,000/year).
Lending Loop Business Loan
4.96% - 26.50%
$1,000
$500,000
3 months - 5 years
$100,000 /year
600
Lending Loop offers personalized loans up to $500,000 for small business owners who have been in business for at least one year and can show an annual revenue of at least $100,000.
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*The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.

How can I find the right factoring company for my business?

When looking for a factoring company that works best for your business, ask yourself the following questions:

  • Is my business eligible? While factoring companies are relatively lenient about who they’ll take on, you often must satisfy at least a few requirements requirements. Don’t waste your time with a company that ultimately won’t work with you.
  • Does it accept invoices from my clients? Many factoring companies work with B2B (business-to-business) and B2G (business-to-government) companies, but your business might work with other types of clients.
  • How much can I get up front? Make sure your advance is enough to cover your business’s overhead costs.
  • How does the factor fee work? Tiered factoring and prime plus can save your business money if its invoices are due within 30 days. If you have longer due dates, you might want to look for a fixed rate.
  • Are there any other fees? Look for administrative and processing fees in particular. Some companies charge extra fees for optional services like wire transfers.
  • How much will it cost? After you’ve narrowed down a few companies, crunch the numbers for a rough estimate of how much working with each company might cost.

Bottom line

They’re not lenders, but factoring services can be helpful for businesses looking to cover overhead costs — especially if you have trouble qualifying for business loans. But the process takes time and money, given the fees involved.

To learn more about how it all works, read our guide to invoice factoring.

Not sure factoring is right for you? Explore your other business loan options.

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