Invoice factoring
Turn unpaid invoices into immediate working capital.
Invoice factoring (also called accounts receivable financing) lets Texas businesses sell their outstanding B2B invoices to a factor in exchange for immediate cash, typically 80 to 95% of face value within 24 hours. Widely used by Texas trucking, staffing, and oilfield services companies waiting on 30 to 90 day customer terms.
What financing typically looks like.
Ranges are indicative. Final structure depends on your business profile, lender criteria, and current market conditions.
- Advance rate
- 80% to 95% of invoice
- Factor fee
- 1% to 4% per 30 days
- Facility size
- $10K to $10M+
- Time to fund
- 24 to 48 hours
- Collateral
- The invoice itself
- Funding in 24 hours, often the same day
- Approval based on your customers' credit, not yours
- No debt added to your balance sheet
- Scales automatically with your sales
- Selling to creditworthy B2B customers
- Net 30 to 90 day invoice terms
- No serious tax liens or open bankruptcy
- Aging A/R report and customer list
Ideal use cases
Trucking and freight, oilfield services, staffing agencies, manufacturers, and any B2B business with slow-paying commercial customers.
Common questions about invoice factoring.
Is factoring a loan?
No. It is the sale of an asset (your invoice). It does not appear as debt on your balance sheet.
Will my customers know I am factoring?
Usually yes, customers pay the factor directly. Some non-notification programs exist for established borrowers.
What is recourse vs non-recourse factoring?
Recourse means you repurchase invoices that go unpaid. Non-recourse shifts customer credit risk to the factor and costs slightly more.
How is the fee calculated?
Typically a percentage of the invoice face value per 30 days outstanding. A 2% fee on a 60-day invoice equals roughly 4% total.
Ready to apply?
Talk with a Texas-based TCS advisor. Free consultation, soft credit check only, response within 24 hours.
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