Your customers are creditworthy. Your invoices are solid. You shouldn't have to wait 30, 60, or 90 days to get paid. PeerSense connects established B2B businesses with factoring sources that match your industry, volume, and customer credit profile — so you can put capital to work today.
Invoice factoring converts your outstanding B2B receivables into immediate cash. Rather than waiting for your customers to pay on net-30 to net-90 terms, a factoring company advances 80–90% of the invoice face value upfront. When your customer pays, you receive the remaining balance minus the factor fee.
Unlike traditional lending, factoring is driven by the credit quality of your customers — not your own balance sheet. That distinction makes it a powerful tool for growing businesses that have strong receivables but need capital faster than their payment cycle allows.
Your customers are established companies, government agencies, or institutions that pay — they just pay slowly. Factoring unlocks that trapped capital.
PeerSense works with established businesses generating $5 million or more per month in B2B receivables. Higher volume means better advance rates and lower fees.
This is not startup financing. Factoring works best for established operators generating consistent revenue with a proven customer base.
Invoices must be free of liens, disputes, and prior assignments. Clean documentation and verifiable delivery are essential.
The most common structure. You retain the credit risk if your customer fails to pay. Lower fees (typically 1–2%) because the factor has recourse back to you.
The factoring company absorbs the credit risk of customer non-payment. Higher fees (2–3%+) reflect the added risk, but you get true receivables insurance.
Factor individual invoices on an as-needed basis, with no long-term commitment. Ideal if you only need to accelerate cash flow on specific large invoices.
Ongoing arrangement where you factor all or a defined portion of your receivables each month. Typically offers lower rates due to volume commitment.
A revolving credit facility secured by your receivables, but structured as a loan rather than a purchase of invoices. You retain customer relationships and control collections.
Specialized programs for businesses with federal, state, or municipal contracts. Longer payment cycles (60–120 days) make factoring especially valuable here.
| Term | Typical Range |
|---|---|
| Advance Rate | 80–90% of invoice face value |
| Factor Fee | 1–3% per 30-day period |
| Eligible Receivables | Net 30, 60, or 90 day B2B invoices |
| Minimum Volume | $5M+/month in B2B receivables |
| Funding Speed | 24–48 hours after initial setup |
| Contract Length | Month-to-month or 6–12 month terms |
| Concentration Limits | Typically 20–30% max per single customer |
Rates and terms vary by industry, customer credit quality, receivable aging, and volume. PeerSense helps you compare offers across multiple factoring sources.
Invoice factoring is industry-specific. The right factoring partner understands your billing cycles, customer payment behavior, and operational reality.
Raw materials, production costs, and long payment terms create cash flow gaps. Factoring keeps the production line running.
You pay employees weekly. Clients pay you in 45–60 days. Factoring bridges that gap so you can take on more placements.
Freight factoring is one of the most established factoring verticals. Fund fuel, maintenance, and driver payroll without waiting on brokers.
Inventory purchases require upfront capital. Factoring receivables lets you restock and fulfill orders on your own timeline.
Government agencies are creditworthy but slow. Net-60 to net-120 payment terms are standard. Factoring is built for this.
Consulting firms, IT services, and managed service providers with enterprise clients benefit from predictable cash flow through factoring.
We maintain relationships with factoring companies across industries and deal sizes. You see competitive offers, not a single take-it-or-leave-it quote.
A trucking factoring company and a staffing factoring company operate differently. We match you with factors that specialize in your space and handle your volume tier.
Factoring approval depends on your customers, not just you. We evaluate the credit quality of your receivables portfolio before introducing you to the right sources.
PeerSense is compensated by the factoring companies we introduce you to. Our advisory service is free to the business owner.
Invoice factoring is not a fit for every business. Here is what factoring companies typically require.
You invoice other businesses, government entities, or institutions — not individual consumers. B2C businesses generally do not qualify.
Your customers must have reasonable credit profiles. The factoring company is buying the right to collect from them, so their ability to pay is the primary underwriting factor.
PeerSense focuses on established businesses with meaningful receivables volume. If you are generating less than $5M/month in B2B invoices, other working capital solutions may be more appropriate.
Invoices must be for completed work or delivered goods with no disputes, offsets, or prior liens. Progress billing and retainage situations require specialized factors.
If another lender has a blanket lien or a specific lien on your receivables, that must be resolved or subordinated before factoring can proceed.
To move quickly, have these documents ready before your consultation. Incomplete submissions delay the process for everyone.
Accounts Receivable Aging Report
Current AR aging schedule (30/60/90+ days)
Customer List
Top 10-20 customers with contact information
Sample Invoices
3-5 representative invoices showing typical terms
Financial Statements
Last 2-3 years P&L and balance sheet
Tax Returns
Last 2-3 years business tax returns
Articles of Incorporation
Business formation documents
Tell us about your deal — your industry, monthly receivable volume, and customer base. We will connect you with factoring sources that fit.