If you’ve ever asked yourself, “What is factoring?”, you’re not alone. Many business owners run into cash flow challenges when customers take 30, 60, or even 90 days to pay invoices. Factoring is a financing solution that helps companies unlock the cash tied up in their receivables, providing the working capital they need to grow without waiting.
What Is Factoring?
Factoring, also known as accounts receivable financing, is the process of selling your unpaid invoices to a factoring company in exchange for immediate cash. Instead of waiting weeks or months for customers to pay, you get paid most of the invoice’s value upfront in the form of a factor advance. Once your customer pays, the factoring company releases the remaining balance, less a small fee.
It’s not a loan, you’re simply accelerating access to money you’ve already earned.
Why Businesses Use Factoring
- Steady cash flow to cover payroll, rent, and operating expenses.
- Fuel for growth to take on new contracts or larger orders.
- No additional debt since factoring is not a traditional loan.
- Flexible funding that grows alongside your invoices and business.
Factoring Solutions from CapFlow Funding Group®
At CapFlow Funding Group®, we know every business has unique financial needs. That’s why we offer multiple factoring solutions:
- Invoice Factoring – Unlock immediate cash by receiving up to 90% of your outstanding invoices.
- Second Position Factoring – Get funding even if you already have bank financing, SBA loans, or another credit facility in place.
- FactorLOC – A hybrid between factoring and a line of credit, offering flexibility and ease of use.
- mFactor® -Tailored for newer businesses with at least $25,000 in monthly receivables, helping you establish reliable cash flow early on.
Industries That Benefit from Factoring
Factoring isn’t one-size-fits-all—it’s designed to support industries where delayed customer payments create cash flow gaps. CapFlow specializes in helping:
- Trucking & Transportation – Cover fuel, repairs, and payroll while waiting on brokers or shippers.
- Staffing Agencies – Pay employees weekly while clients pay monthly.
- Manufacturing & Wholesale – Manage large supply orders and long payment terms.
- Professional Services – Engineering, IT, and consulting firms that bill on extended terms.
- Seasonal & Project-Based Businesses – Landscaping, forestry services, and contractors balancing upfront costs with delayed payments.
No matter your industry, if unpaid invoices are holding your business back, factoring can provide the capital you need to stay competitive and grow.
Don’t Let Slow-Paying Clients Stall Your Growth.
Partner with CapFlow Funding Group® today and explore our customized cash flow solutions to keep your cash flow moving forward.
