manu // factoring
Invoice Factoring
Convert unpaid invoices into immediate cash. Get 80% to 95% upfront, the rest when your customer pays. One application to 75+ lenders. Powered by National Business Capital.
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Understanding Invoice Factoring
Invoice factoring sells your unpaid B2B invoices to a factor at a discount, converting them into immediate cash. The factor collects payment directly from your customers, and your business credit matters less than your customers creditworthiness.
How It Works
You submit unpaid invoices to the factor, which advances 80% to 95% of the invoice value within 1 to 3 days. When your customer pays the invoice, the factor remits the remaining balance minus a factoring fee.
Key Terms & Eligibility
$10K to $10M
Per invoice, 30 to 90 days
1% to 5% per month
1 to 3 business days per invoice
Based on your customers credit, not yours
The invoices themselves
One application returns matched offers from 75+ lenders, so you compare instead of guess.
Who Should Use Invoice Factoring?
B2B businesses with long payment cycles, such as staffing, trucking, manufacturing, and wholesale. Ideal when you need cash now but your customers pay in 30, 60, or 90 days.
Common Uses
- Paying suppliers while waiting for customer payment
- Meeting payroll during long invoice cycles
- Taking on new contracts without waiting for payment
- Bridging seasonal receivables gaps
Pros & Considerations
Pros
- Cash within 1 to 3 days of invoicing
- Based on customer credit, not yours
- No debt on your balance sheet
- Scales with your sales volume
Considerations
- Factor collects directly from your customers
- Cost adds up with long payment cycles
- Only works for B2B invoiced sales
How You Qualify
Lenders weigh the whole business, not just a score:
- Time in business and revenue (min. 3 months, $10K/mo in invoiced sales)
- Bank deposit consistency and cash flow patterns
- Owner credit (min. Based on your customers credit, not yours), as one input among several
- Collateral or asset value, where applicable
Strong revenue or valuable assets can carry a deal that credit alone would not.
How to Apply
- Tell us how much you need and what for. One form, no fee to apply.
- Share basic business and owner details. No hard credit pull to pre-qualify.
- Send recent bank statements, plus equipment quotes, invoices, or financials if relevant.
- Compare matched offers from 75+ lenders and pick what fits.
FAQ
How is invoice factoring different from a loan?
Factoring is a sale of your invoices, not a loan. You sell the invoice to the factor at a discount and receive cash upfront. Since it is not debt, it does not appear as a liability on your balance sheet.
What percentage of my invoice do I get upfront?
Factors typically advance 80% to 95% of the invoice value upfront. The remaining 5% to 20% (the reserve) is remitted when your customer pays, minus the factoring fee.
Will my customers know I am factoring?
In most factoring arrangements, the factor collects payment directly from your customers, so they will know. Some factors offer non-notification factoring where you retain collection duties, but this is less common and may cost more.
What credit score is needed for invoice factoring?
Factoring approval is based primarily on your customers creditworthiness and payment history, not your business credit. This makes it accessible for businesses with lower credit scores that have creditworthy customers.
Is there a hard credit pull to pre-qualify?
No. There is no hard credit pull to pre-qualify through the NBC network, so checking your options does not affect your credit.
What types of invoices can be factored?
Factoring works for B2B invoices with payment terms of 30 to 90 days. The invoice must be for completed work or delivered goods, and your customer must be creditworthy. Consumer invoices and prepaid sales do not qualify.
How much does invoice factoring cost?
Factoring fees typically range from 1% to 5% per month, depending on your customers credit, invoice volume, and payment terms. The longer your customer takes to pay, the higher the fee.
Comparing Invoice Factoring to Other Options
- vs. SBA Loans: SBA offers lower rates and longer terms but takes 30-60 days. Invoice Factoring funds significantly faster but at higher rates.
- vs. Equipment Financing: Equipment financing is secured by the asset and limited to equipment purchases. Invoice Factoring offers broader use of funds.
- vs. Working Capital Lines: Working capital lines are revolving and best for ongoing needs. Invoice Factoring provides a lump sum suited to specific capital needs.
Related Financing Options
- SBA Loans — government-backed, lowest rates
- Equipment Financing — asset-secured, fast approval
- Working Capital Loans — revolving, flexible use
- Business Line of Credit — draw only what you need
Sources
- U.S. Small Business Administration, finance your business: sba.gov/business-guide
- Federal Reserve, Small Business Credit Survey: fedsmallbusiness.org/
- SBA funding programs overview: sba.gov/funding-programs
About Manu
Manu is a digital platform that helps US manufacturers and small businesses list facilities, showcase capabilities, and market products.
About National Business Capital
National Business Capital is a fintech financing platform that connects businesses with 75+ lenders, $3B+ secured nationwide since 2007.
Verified Reviews
Businesses funded through the National Business Capital network have left 3,000+ five-star reviews on Google and Trustpilot. NBC has secured over $3B in financing since 2007 and maintains an A+ rating. Read verified reviews on NBC's website.
This page was last reviewed July 11, 2026 by Malik Samara, Managing Partner. Our editorial team reviews and updates content on a rolling basis. Learn about our editorial standards.
Manu Business Lending is a paid referral partner of National Business Capital. Financing is provided by NBC and its lender network, not by Manu, and all loans are subject to lender approval, terms, and conditions.