Turn Unpaid Invoices Into Immediate Working Capital
Stop waiting 30–90 days for clients to pay. Invoice financing (also called accounts receivable financing) lets you access up to 90% of your outstanding invoice value within 24–48 hours. Approvd connects you with invoice financing and factoring providers who specialize in your industry.
$10,000 – $5,000,000
24–48 Hours
Repayment Terms
30 – 90 Day Advance Periods
Fee From
0.5%/week
Minimum Requirements
Overview
What Is Invoice Financing?
Invoice financing solves one of the most common cash flow problems in B2B business: the gap between when you deliver your product or service and when your client actually pays. For businesses with net-30, net-60, or net-90 payment terms — common in construction, trucking, staffing, healthcare, and professional services — this gap can create serious operational strain even for profitable businesses.
There are two main structures. In invoice financing (also called accounts receivable financing or AR financing), you use your invoices as collateral for a line of credit — you retain ownership of the invoices and are responsible for collecting payment from your clients. In invoice factoring, you sell your invoices outright to the factoring company at a discount, and they take over collection.
Approvd works with providers offering both structures. Most clients receive 80–90% of their invoice face value upfront, with the remaining 10–20% (minus fees) returned when the invoice is paid. Fees typically range from 0.5%–3% per week depending on invoice size, client creditworthiness, and your industry.
A critical advantage: invoice financing approval is based primarily on your clients' creditworthiness rather than your own. If you have strong, creditworthy clients (large corporations, government entities, healthcare systems) who are slow payers, you may qualify even with limited credit history or a young business.
Why Approvd?
No impact to credit score
Simple Process
How Invoice Financing Works
Submit Your Invoices
Share outstanding invoices from creditworthy clients. The financing provider reviews your clients' payment history, not just your business credit.
Receive 80–90% Upfront
Once approved, receive up to 90% of your invoice face value within 24–48 hours. The remaining reserve is held until your client pays.
Client Pays the Invoice
Your client pays the invoice on their normal schedule (net-30, net-60, etc.). With factoring, they pay the factor directly. With financing, you collect and remit.
Receive the Reserve Minus Fees
Once the invoice is paid, you receive the remaining 10–20% reserve minus the financing fee. Total cost: typically 1–6% of invoice value.
Key Advantages
Benefits of Invoice Financing Through Approvd
Based on Client Creditworthiness
Approval focuses on your clients' ability to pay — not just your own credit score. Strong clients mean better terms.
Eliminate Cash Flow Gaps
Stop waiting 30–90 days for payment. Access cash tied up in unpaid invoices within 24–48 hours.
Scalable With Revenue
As your invoiced revenue grows, your financing capacity grows proportionally. No need to re-apply for increased limits.
No Fixed Monthly Payment
Financing is repaid when your clients pay — aligning repayment with your actual cash flows rather than a fixed calendar schedule.
Common Uses
What Can You Use Invoice Financing For?
Businesses across industries use invoice financing through Approvd to fund growth, manage cash flow, and seize opportunities.
- Construction companies waiting on contractor payments
- Trucking and logistics companies with freight broker net-30/60 terms
- Staffing agencies bridging payroll while client invoices are outstanding
- Medical practices waiting on insurance reimbursements
- Professional services firms with large net-60 corporate clients
- Wholesale distributors with slow-paying retail accounts
- Government contractors with long payment cycles
Ready to Get Started?
Apply in 5 minutes. Get matched with real offers from 75+ lenders. No impact to your credit score.
Or call (516) 262-5269Common Questions
Invoice Financing FAQ
What is the difference between invoice financing and invoice factoring?
With invoice financing, you retain ownership of the invoices and responsibility for collection — the invoices serve as collateral for a loan or line. With factoring, you sell the invoices outright to the factor who takes over collection. Factoring is simpler but typically more expensive and involves your clients being notified of the arrangement.
Will my clients know I'm using invoice financing?
With non-notification financing, your clients are not aware — you continue collecting payments normally. With factoring, clients are typically notified and directed to pay the factor. Your Approvd advisor will help you choose the right structure for your client relationships.
What types of invoices qualify?
B2B (business-to-business) invoices from creditworthy commercial clients generally qualify. B2C (consumer) invoices typically don't qualify for most invoice financing products. Government and large corporate invoices are usually the strongest collateral.
How much of my invoice value can I access?
Most providers advance 80–90% of the invoice face value upfront. The remaining 10–20% (the "reserve") is returned to you once your client pays, minus the financing fee.
How is invoice financing different from a line of credit?
A line of credit is a general-purpose revolving facility based on your business credit. Invoice financing is specifically secured by your outstanding receivables and scales with your billing volume. Many businesses use both — a line for general needs and invoice financing specifically to bridge payment gaps.
Other Financing Solutions
Not sure if this is the right fit? Explore our other products.
Important Disclosure
Approvd is a loan marketplace and does not make lending decisions or issue loans directly. All loan products, rates, terms, amounts, and approval decisions are determined solely by the individual lenders in our network. Loan availability and terms vary by lender, applicant qualifications, state regulations, and other factors.
Applying through Approvd does not guarantee loan approval or any specific loan amount, rate, or term. APR and cost of capital vary widely based on loan type, lender, credit profile, revenue, time in business, and other underwriting criteria. Representative APR examples are illustrative only and do not constitute an offer or guarantee of credit.
Business loans involve risk. Carefully review all loan documents and understand your repayment obligations before accepting any offer. If you have questions about a specific loan product, consult the lender directly or seek independent financial or legal advice.
See Your Invoice Financing Options Today
Apply in 5 minutes. Real offers from 75+ lenders. Zero impact to your credit score.