Invoice Financing
Invoice financing lets you get cash immediately for unpaid invoices instead of waiting 30-90 days for customers to pay their bills. A lender advances you money based on outstanding invoices, giving you immediate working capital while your customers take their time paying. Los Angeles Premiere Business Loans provides invoice financing for small business owners who need to bridge cash flow gaps caused by slow-paying customers.
We help you understand how invoice financing works and explain the differences between invoice factoring vs invoice financing so you pick the right solution for your situation. Our competitive invoice financing rates make this an affordable way to turn your accounts receivable into immediate cash without taking on traditional debt. When you have solid customers who pay their bills but need cash flow now, invoice financing gives you money within days instead of waiting months for payments.
Types of Invoice Financing We Offer
We provide different invoice financing options depending on whether you want to keep control of your customer relationships or prefer hands-off collection services. Each approach works differently based on your business needs and customer payment patterns.
Invoice Factoring Services
Invoice factoring means we buy your unpaid invoices outright and handle all customer collections directly, giving you immediate cash minus our fee. You get money right away without waiting for customer payments, and we take over all collection efforts and credit risk.
This works great when you want to completely eliminate accounts receivable management from your business operations. Most businesses use factoring when they have reliable customers but need immediate cash flow to take on new projects or cover expenses.
Invoice Financing Lines of Credit
We provide credit lines secured by your accounts receivable, letting you borrow against outstanding invoices while maintaining control of customer relationships. You continue collecting payments from customers yourself and use those payments to pay down the credit line balance.
This option typically costs less than factoring because you handle collections, and customers never know you're using invoice financing. Business owners prefer this when they want to maintain direct customer relationships and don't mind managing collections.
Selective Invoice Financing
You can choose which specific invoices to finance rather than pledging all your receivables, giving you flexibility to finance only your largest or slowest-paying accounts. This approach lets you keep some customer relationships direct while getting immediate cash for problem accounts or large invoices.
You maintain more control over your customer base while still accessing working capital when needed. Many businesses use selective financing for their biggest invoices or customers with longer payment terms.
Recourse vs Non-Recourse Options
With recourse financing, you're responsible if customers don't pay their invoices, but you get better rates because we have less risk. Non-recourse financing means we absorb the loss if customers don't pay, protecting you from bad debt but costing slightly more.
The choice depends on how confident you are in your customer payment history and whether you want credit protection. We help you evaluate which option makes more financial sense based on your customer base and risk tolerance.
Benefits of Invoice Financing Through Us
Invoice financing solves the biggest problem most businesses face - waiting for customers to pay while you need money now for payroll, supplies, and growth opportunities. We make the process simple and get you funded quickly.
Get Paid Within Days Instead of Months
Turn your unpaid invoices into cash within 24-48 hours instead of waiting 30-90 days for customers to pay their bills. This immediate cash flow lets you cover payroll, buy inventory, or take advantage of growth opportunities without waiting for slow customers. You don't have to chase customers for payments or worry about late fees affecting your business operations.
No Traditional Credit Requirements
Invoice financing approval depends on your customers' creditworthiness rather than your business credit score or financial history. If you have customers with good payment records, you can qualify even if your business is new or has credit challenges. This makes invoice financing accessible for businesses that might not qualify for traditional loans or lines of credit.
Maintain Customer Relationships
With invoice financing lines of credit, your customers never know you're using financing since you continue handling all collections directly. This preserves your customer relationships and business reputation while still giving you immediate access to cash. You maintain control over payment terms and customer communications just like you always have.
How Our Invoice Financing Process Works
Getting started with invoice financing is straightforward once you understand the basic requirements and approval process.
Initial Consultation and Account Setup
We review your customer base, typical invoice amounts, and payment patterns to determine which invoice financing option works best for your business. Our team explains how invoice factoring vs invoice financing differences affect your costs and customer relationships.
Customer Credit Review and Approval
We evaluate your customers' creditworthiness and payment history since their ability to pay determines your financing approval and rates. Customers with strong credit and consistent payment records qualify for higher advance rates and better terms.
Invoice Submission and Funding Process
Once approved, you submit copies of invoices for financing through our online portal or by email, and we advance funds within 24-48 hours. We typically advance 70-90% of invoice value immediately, holding the remainder as a reserve until customers pay.
Frequently Asked Questions
What is invoice financing and how is it different from a regular business loan?
Invoice financing advances you money against your unpaid invoices rather than providing a lump sum loan that requires fixed monthly payments. You only pay fees on the invoices you choose to finance, and repayment comes from your customer payments rather than your business cash flow.
How does invoice financing work from start to finish?
You submit copies of unpaid invoices, we advance 70-90% of the value within 24-48 hours, and when your customers pay, we collect our fees and send you the remaining balance. The process repeats for each invoice you choose to finance, giving you ongoing access to working capital.
What's the difference between invoice factoring vs invoice financing?
Invoice factoring means we buy your invoices and handle customer collections directly, while invoice financing gives you a credit line against receivables where you maintain customer relationships. Factoring provides more hands-off service but costs slightly more than financing where you handle collections yourself.
Can small businesses qualify for invoice financing without perfect credit?
Yes, invoice financing approval depends more on your customers' creditworthiness than your business credit since they're the ones who will ultimately pay the invoices. If you have customers with good payment history, you can qualify even with limited business credit or operating history.
What are typical invoice financing rates and how do they compare to other funding options?
Invoice financing rates typically range from 1-5% per month depending on customer credit quality and payment terms, which can be competitive with other short-term funding options. The exact rate depends on your customer mix and how quickly they typically pay their invoices.