Funding Solutions
Stop Waiting 60 Days for Money You've Already Earned
Your invoices represent completed work and delivered value. Invoice factoring converts those receivables into immediate cash so you can fund operations, take on new projects, and grow without waiting for clients to pay.
Check Your EligibilityOverview
Invoice Factoring
Invoice factoring is a fundamentally different financing model from traditional lending. Instead of borrowing money against your credit or assets, you sell your outstanding invoices to a factoring company at a slight discount and receive immediate cash — typically 80 to 95% of the invoice value within 24 hours. When your customer pays the invoice, you receive the remaining balance minus a small factoring fee. There's no debt created, no monthly loan payments, and no interest accruing on a balance.
This structure makes invoice factoring uniquely powerful for B2B businesses that operate on net-30, net-60, or net-90 payment terms. You've already done the work, delivered the product, or completed the project — but your cash is locked up in accounts receivable for weeks or months while your expenses (payroll, materials, overhead) continue daily. Factoring unlocks that cash immediately.
At Granton Hale Capital, we factor invoices for businesses across industries including staffing, trucking, manufacturing, consulting, and government contracting. Our factoring decisions are based primarily on the creditworthiness of your customers — not your personal credit score — which makes this an excellent option for newer businesses or owners with credit challenges. We offer both spot factoring (factor individual invoices as needed) and contract factoring (ongoing facility for all or most invoices).
Ideal For
Amount
$25K–$10M (based on invoice volume)
Term
Per Invoice (net terms of your customers)
- Staffing agencies waiting on weekly or biweekly client payments
- Trucking and freight companies with net-30/60 broker payments
- Manufacturing businesses with large receivables from distributors
- Government contractors with slow federal or state payment cycles
- Professional service firms billing on completion milestones
- Any B2B business with creditworthy customers and long payment terms
Why Choose This Product
Key Benefits
Cash in 24 Hours, Not 60 Days
Submit an invoice, receive 80–95% of its value within 24 hours. Your customer's net-60 payment terms become same-day cash for your business. The factoring company waits for payment — you don't.
No Debt on Your Balance Sheet
Invoice factoring is a sale of receivables, not a loan. You're converting an asset (invoices) into cash. There are no monthly loan payments, no interest charges, and no debt recorded on your books.
Qualification Based on Your Customers
Because the factoring company collects from your customers, their creditworthiness matters more than yours. A startup with $500K in invoices from Fortune 500 clients can factor those invoices even with a thin credit history.
Scales With Your Revenue
Unlike a fixed loan amount, your factoring capacity grows as your business grows. More invoices means more available cash. A $100K/month business can factor $100K; when you grow to $500K/month, you can factor $500K.
The Challenge
Problems This Solves
Payroll Due Before Client Payment Arrives
You have $200K in outstanding invoices from creditworthy clients, but payroll is due Friday and those invoices won't be paid for 45 days. You've earned the money — you just don't have it yet. Factoring solves this immediately.
Turning Down Projects Due to Cash Constraints
A new project requires $80K in upfront labor and materials costs, but your cash is tied up in receivables from the last project. Without factoring, you either turn down the work or take on expensive debt to fund it.
Growth Paradox: More Revenue, Less Cash
As B2B companies grow, they invoice more — but also wait longer for cash. A company doing $50K/month might have $50K in receivables. At $500K/month, they have $500K locked up. Revenue growth actually worsens cash flow without factoring.
Vendor Relationships Strained by Late Payments
When client payments are slow, your payments to suppliers, subcontractors, and vendors become slow too. This damages relationships, eliminates early-payment discounts, and can result in being put on COD terms — further squeezing cash flow.
Use Cases
How Businesses Use This Funding
Staffing Agency Payroll Funding
A staffing agency places 50 workers per week at a major hospital system on net-45 terms. They factor $180K/week in invoices to cover weekly payroll of $160K, receiving funds every Monday for the previous week's invoices.
Trucking Company Fuel and Driver Pay
A trucking fleet with 15 trucks factors invoices from freight brokers (typically net-30) to cover $40K/week in fuel costs and driver settlements. Factoring converts each load's invoice to cash within 24 hours of delivery confirmation.
Government Contractor Cash Flow
A cybersecurity firm with a $4M federal contract factors monthly invoices of $330K against the contract. Federal payment terms are net-60, but the firm needs cash weekly for salaries, cloud infrastructure, and subcontractor payments.
Manufacturing Raw Material Purchase
A metal fabrication shop factors $250K in invoices from an automotive OEM customer (net-90 terms) to purchase $180K in raw steel for the next production run, maintaining continuous output without cash-flow interruption.
Spot Factoring for Seasonal Spikes
A landscaping company factors invoices only during spring and summer when receivables stack up and crew payroll peaks. During winter, they don't factor at all — paying zero fees during the off-season.
FAQ
Frequently Asked Questions
Will my customers know I'm factoring their invoices?
It depends on the arrangement. With notification factoring (most common), your customers are notified to remit payment to the factoring company. This is standard practice in industries like staffing and trucking. With non-notification factoring (available for some clients), payments continue to come to your business and you remit to the factor. We'll help you choose the arrangement that fits your customer relationships.
What happens if my customer doesn't pay the invoice?
This depends on whether you have recourse or non-recourse factoring. With recourse factoring (lower fees), you're responsible for repurchasing or replacing unpaid invoices after a defined period (usually 90 days). With non-recourse factoring (slightly higher fees), the factoring company absorbs the loss if a customer defaults due to insolvency. We offer both options.
How much does invoice factoring cost?
Factoring fees typically range from 1% to 3% of the invoice value per 30-day period. So a $100K invoice factored at 2% per 30 days with a 45-day payment cycle would cost approximately $3,000. The exact rate depends on your invoice volume, your customers' credit quality, and the average payment terms. Higher volumes and faster-paying customers get lower rates.
Can I factor only some of my invoices?
Yes. Spot factoring allows you to choose specific invoices to factor as needed, giving you complete flexibility. Some businesses factor all invoices from slow-paying clients while collecting directly from fast payers. Others only factor during cash-crunched periods. Contract factoring (committing to factor a minimum volume) offers lower per-invoice rates if you have consistent needs.
What industries are best suited for invoice factoring?
Any B2B industry with creditworthy customers and payment terms of net-30 or longer. The most common industries we serve include staffing and recruitment, trucking and freight, manufacturing, oil and gas services, government contracting, wholesale distribution, and professional services (consulting, IT, engineering). If your customers are other businesses, factoring likely works for you.
How is invoice factoring different from invoice financing (accounts receivable lending)?
With factoring, you sell invoices outright and the factor collects payment from your customer. With AR lending, you use invoices as collateral for a loan — you still collect payment and repay the lender. Factoring is simpler (no monthly loan payments to manage) and accessible to newer businesses, but AR lending may offer lower costs for established companies with strong credit. We offer both and can recommend the right fit.
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30-second application. No hard credit pull. Decisions in as little as 3 hours.