How much does invoice factoring cost?

Invoice Factoring typically costs ~1–3.5% per 30 days, advancing 80–95% of invoice value. Volume, customer credit, and average invoice size drive where you land in the range. These are directional ranges, not a quote. Your actual offer depends on your customers, credit, revenue, and industry, and is set by the funding institution during underwriting.

How fast can a manufacturer get invoice factoring?

Typical timing is 7–14 days to onboard, 24–48 hrs per invoice after. That range assumes a complete file: current financials, bank statements, and documentation of what the money is for. Missing documents are the most common reason a file slows down.

Who qualifies for invoice factoring?

Manufacturers with creditworthy commercial or government customers that pay on net-30, net-60, or net-90 terms. On our side, the baseline is a US-based manufacturer producing goods domestically, with B2B or B2G customers and at least $25K in monthly revenue or a confirmed purchase order that gets there. Final approval is always the funding institution's call.

Is invoice factoring a loan?

No. Factoring is the sale of your receivables, not a loan. You are selling an asset (the invoice) at a small discount, so no new debt appears on your balance sheet and there is nothing to repay. Your customer pays the factor directly.

Do I need great personal credit to factor invoices?

Not usually. Factoring underwriting weighs the credit of the customers who owe you money much more heavily than your personal credit. Manufacturers with challenged credit are often still approved. Underwriting focuses on your customers' credit and payment history, not yours. Challenged personal credit, thin files, and past bankruptcies can still qualify. You need B2B or B2G invoices on net-15 to net-90 terms. Baseline volume is about $25K or more in monthly revenue. Not sure your file clears it? Score your readiness first.

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What is invoice factoring?

Invoice factoring lets a manufacturer sell unpaid B2B or B2G invoices for immediate cash. A factor typically advances 80–95% of the invoice within days and collects from your customer on their normal terms. Fees usually run about 1–3.5% per 30 days. Approval depends mainly on your customers' credit, not yours, and most accounts fund within 3–10 days of setup.

Best for

Manufacturers with creditworthy commercial or government customers that pay on net-30, net-60, or net-90 terms.

How it works

1You invoice your customer as usual after delivery.
2The factoring partner advances a large percentage of that invoice (often 80–95%) within days.
3Your customer pays the factor directly on their normal terms.
4You receive the remaining balance, less a small factoring fee.

Benefits

Cash within days instead of 30–90 days
Line grows with your sales—no fixed cap
Underwriting focuses on your customers' credit, not just yours
Frees up working capital for materials, payroll, and new orders

Factoring cost estimator

Model one invoice: what lands up front, what the fee runs, and what the reserve releases.

Your numbers

Adjust each input. Results update as you move.

Invoice amount$120,000

Face value before any fees.

$5,000$2,000,000

Advance rate90%

Share funded up front.

80%95%

Fee per 30 days2%

Charged on the face value for each 30-day period outstanding.

1%3.5%

Days outstanding45 days

How long the balance stays open before it is repaid.

15 days120 days

Estimated cost of capital

An illustration built from the inputs above, not a quote or an offer.

Cash advanced up front

$108,000

90% of $120,000

Estimated fee

$3,600

2% per 30 days over 45 days

Reserve released after payment

$8,400

Balance returned less the fee

Net proceeds to you

$116,400

Total received across advance and reserve

Illustrative annualized cost

27.0%

Fee scaled to a 365-day year for comparison only

Educational tool only

These figures are for education. They are not a quote, a promise to lend, an approval, or an indication of offers to come. Manufactor Finance is a business referral service and referral service, not a bank, lender, or investor. Real pricing and structure come from the funding institution after it reviews your file, and can differ from anything shown here. Not all products are available in all states.

Compare Invoice Factoring to other programs

All 6 programs we refer, side by side. The right fit depends on what you're funding, how fast you need it, and what your file supports. These are typical ranges, not quotes.

Comparison of manufacturing funding programs: typical advance or size, cost, speed to fund, and best use.
Program	Advance / typical size	Typical cost	Speed to fund	Best for
Invoice FactoringThis page	$25K–$10M+ per month	~1–3.5% per 30 days	7–14 days to onboard, 24–48 hrs per invoice after	Shops with creditworthy B2B / gov buyers on net-30/60/90
Purchase Order Financing	$100K–$25M per PO	~2–6% per 30 days	1–3 weeks	Funded POs from creditworthy buyers when you can't self-fund materials
Equipment Financing	$25K–$5M per asset	~7–18% APR	3–10 business days	Adding capacity — CNC, robotics, lines, tooling, vehicles
Asset-Based Lending (ABL)	$1M–$50M+ revolver	~SOFR + 3–8%	3–6 weeks	Established manufacturers with A/R, inventory, and equipment collateral
Working Capital	$25K–$1M	Factor rate or APR — varies by product	2–7 business days	Short-term gaps — payroll, materials, a specific catch-up
SBA & Term Loans	$150K–$5M+	~Prime + 2.75–4.75%	45–120 days	Real estate, acquisitions, refis, long-horizon growth capital

Invoice FactoringThis page

Advance / size: $25K–$10M+ per month
Typical cost: ~1–3.5% per 30 days
Speed to fund: 7–14 days to onboard, 24–48 hrs per invoice after
Best for: Shops with creditworthy B2B / gov buyers on net-30/60/90

Purchase Order Financing

Advance / size: $100K–$25M per PO
Typical cost: ~2–6% per 30 days
Speed to fund: 1–3 weeks
Best for: Funded POs from creditworthy buyers when you can't self-fund materials

Equipment Financing

Advance / size: $25K–$5M per asset
Typical cost: ~7–18% APR
Speed to fund: 3–10 business days
Best for: Adding capacity — CNC, robotics, lines, tooling, vehicles

Asset-Based Lending (ABL)

Advance / size: $1M–$50M+ revolver
Typical cost: ~SOFR + 3–8%
Speed to fund: 3–6 weeks
Best for: Established manufacturers with A/R, inventory, and equipment collateral

Working Capital

Advance / size: $25K–$1M
Typical cost: Factor rate or APR — varies by product
Speed to fund: 2–7 business days
Best for: Short-term gaps — payroll, materials, a specific catch-up

SBA & Term Loans

Advance / size: $150K–$5M+
Typical cost: ~Prime + 2.75–4.75%
Speed to fund: 45–120 days
Best for: Real estate, acquisitions, refis, long-horizon growth capital

Ranges are directional, not offers. Your actual terms depend on your customers, credit, revenue, and industry, and are set by the funding institution. We are an independent referral service, not a bank, lender, or investor, and we charge no application, origination, or closing fees.

See head-to-head comparisons

Quick answers about invoice factoring

What is invoice factoring?: Invoice factoring lets a manufacturer sell unpaid B2B or B2G invoices for immediate cash. A factor typically advances 80–95% of the invoice within days and collects from your customer on their normal terms. Fees usually run about 1–3.5% per 30 days. Approval depends mainly on your customers' credit, not yours, and most accounts fund within 3–10 days of setup.
How much does invoice factoring cost?: Invoice Factoring typically costs ~1–3.5% per 30 days, advancing 80–95% of invoice value. Volume, customer credit, and average invoice size drive where you land in the range. These are directional ranges, not a quote. Your actual offer depends on your customers, credit, revenue, and industry, and is set by the funding institution during underwriting.
How fast can a manufacturer get invoice factoring?: Typical timing is 7–14 days to onboard, 24–48 hrs per invoice after. That range assumes a complete file: current financials, bank statements, and documentation of what the money is for. Missing documents are the most common reason a file slows down.
Who qualifies for invoice factoring?: Manufacturers with creditworthy commercial or government customers that pay on net-30, net-60, or net-90 terms. On our side, the baseline is a US-based manufacturer producing goods domestically, with B2B or B2G customers and at least $25K in monthly revenue or a confirmed purchase order that gets there. Final approval is always the funding institution's call.
Is invoice factoring a loan?: No. Factoring is the sale of your receivables, not a loan. You are selling an asset (the invoice) at a small discount, so no new debt appears on your balance sheet and there is nothing to repay. Your customer pays the factor directly.

Invoice Factoring — FAQs

Not usually. Factoring underwriting weighs the credit of the customers who owe you money much more heavily than your personal credit. Manufacturers with challenged credit are often still approved.

Underwriting focuses on your customers' credit and payment history, not yours.
Challenged personal credit, thin files, and past bankruptcies can still qualify.
You need B2B or B2G invoices on net-15 to net-90 terms.
Baseline volume is about $25K or more in monthly revenue.
Not sure your file clears it? Score your readiness first.

Programs vary. Some are whole-ledger, others let you pick and choose invoices or specific customers. We'll match you with a structure that fits how you actually run your shop.

Account setup typically runs 7–14 business days. After that, first funding on an approved invoice lands within 24–48 hours.

Advances typically run 80–95% of the invoice, with fees roughly 1–3% per 30 days. Volume, customer credit, and average invoice size drive where you land in the range.

Established commercial and government buyers see factoring notices constantly — it's routine AP paperwork. A good factor handles notification professionally so it never becomes a friction point.

Sometimes, with an intercreditor agreement between the bank and the factor. More commonly, factoring replaces a maxed-out line, or supplements it against specific customer receivables the bank doesn't advance well on.

Explore the Invoice Factoring content hub

Guides, comparisons, a pre-application checklist, and plain-English explainers, all in one place.

Related programs

Equipment Financing

Finance new or used machinery, CNC, robotics, and production lines.

Purchase Order Financing

Get the capital to fulfill large customer orders without straining cash flow.

Asset-Based Lending (ABL)

Revolving lines secured by receivables, inventory, and equipment.

Working Capital

Short-term capital to bridge payroll, materials, and growth spikes.

SBA & Term Loans

Longer-term, lower-cost capital for growth, real estate, or acquisitions.

Invoice Factoring by industry

See how invoice factoring works inside a specific manufacturing niche.

Invoice Factoring in specialized sub-niches

Industries that lean on invoice factoring the most, broken down to the shop level.

Food & Beverage ManufacturingUSDA Meat & Poultry Processing Food & Beverage ManufacturingCo-Packing & Private Label Food & Beverage ManufacturingCraft Beverage & Bottling Medical Device ManufacturingFDA Class II Devices Medical Device ManufacturingContract Manufacturing (CMO / CDMO)Medical Device ManufacturingOrthopedic & Implantable Devices Metal FabricationStructural Steel Fabrication Metal FabricationSheet Metal & Stamping Metal FabricationPowder Coating & Industrial Finishing Plastics & Injection MoldingInjection Molding & Tooling Plastics & Injection MoldingBlown Film & Extrusion Plastics & Injection MoldingThermoforming & Vacuum Forming

Invoice Factoring by city

View all Invoice Factoring cities →

Local referrals for invoice factoring in every US manufacturing metro we serve.

Gulf Coast

Invoice Factoring in Houston, TX Invoice Factoring in Mobile, AL Invoice Factoring in Baton Rouge, LA Invoice Factoring in Brownsville, TX Invoice Factoring in Victoria, TX Invoice Factoring in Monroe, LA Invoice Factoring in Alexandria, LA Invoice Factoring in Lake Charles, LA Invoice Factoring in Houma, LA Invoice Factoring in Slidell, LA

West Coast

Midwest

Great Lakes

South Central

Southeast

Upper Midwest

Invoice Factoring in Minneapolis, MN Invoice Factoring in Eau Claire, WI Invoice Factoring in Wausau, WI Invoice Factoring in La Crosse, WI Invoice Factoring in St. Cloud, MN Invoice Factoring in Duluth, MN Invoice Factoring in Mankato, MN Invoice Factoring in Winona, MN Invoice Factoring in Moorhead, MN

Mid-Atlantic

Southwest

Pacific Northwest

Invoice Factoring in Seattle, WA Invoice Factoring in Portland, OR Invoice Factoring in Spokane, WA Invoice Factoring in Yakima, WA Invoice Factoring in Tri-Cities (Kennewick), WA Invoice Factoring in Bellingham, WA Invoice Factoring in Olympia, WA Invoice Factoring in Wenatchee, WA Invoice Factoring in Mount Vernon, WA Invoice Factoring in Medford, OR Invoice Factoring in Corvallis, OR Invoice Factoring in Albany, OR Invoice Factoring in Klamath Falls, OR Invoice Factoring in Hillsboro, OR

Mountain West

Northeast

West

South

Great Plains

Mountain

Invoice Factoring in Cheyenne, WY Invoice Factoring in Ogden, UT Invoice Factoring in Provo, UT Invoice Factoring in St. George, UT Invoice Factoring in Grand Junction, CO Invoice Factoring in Fort Collins, CO Invoice Factoring in Bozeman, MT Invoice Factoring in Missoula, MT Invoice Factoring in Idaho Falls, ID Invoice Factoring in Pocatello, ID Invoice Factoring in Casper, WY

Free PDF

Funding Requirements Checklist for US manufacturers

See exactly what underwriters actually look at — for factoring, PO financing, equipment, working capital, ABL, and SBA — before you fill out a single application.

What documents you need for each program
Typical time-to-fund by program
Common disqualifiers worth knowing up front
How Manufactor Finance is compensated — $0 fees to you

3-page PDF · No application, origination, or closing fees to you · We're a independent referral service, not a bank.

See the full requirements breakdown

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