Here is a basic example of how invoice factoring works.


Business A is a small business.

Invoice Factoring


They work with many clients, including a large corporation we’ll call Client X.

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Client X has a strong credit history and is a long-time customer for Business A.

Invoice Factoring


Client X pays their invoices in 30 days, but Business A needs the money sooner. This is when Business A decides to factor their invoices.

Invoice Factoring


The factoring company promptly advances Business A between 75% and 100% of the invoice amount and handles the collections process.Invoice Factoring


Within 30 days, Client X pays the invoice in full to the factoring company. The factoring company settles the transaction by paying the remainder of the invoice, minus a small factoring fee, to Business A.Invoice Factoring


Factoring invoices is a risk-free and debt-free way to get immediate cash on your invoices!

Invoice FactoringFor more information and to learn how your business could benefit from invoice factoring with Interstate Capital, contact a representative or click here for a free factoring assessment today!