Invoice factoring and AR finance
Invoice factoring: cash this week, customers on terms
Turn approved invoices into cash within days. Advance rates to 90%+, with fees from 1.5–4.5% per 30 days9. No equity, no long-term debt on your balance sheet. The calculator is illustrative.
The aging file is the collateral.
Approved invoices advance at 90%+. Your customer still pays on their terms. Cash hits in 24–48 hours.
How factoring moves
Invoice as normal. Cash in 24–48 hours.
01
You invoice your customer as normal
02
You submit the invoice to Novaline’s funding partner
03
Advance funds hit your account — typically 24–48 hours
04
Your customer pays on their normal terms
05
Reserve released, less the factoring fee
Comparison
Factoring versus a bank line of credit.
Bank lines are cheaper when you can get them. We will say so.
| Factoring | Bank line of credit | Merchant advance | Equity | |
|---|---|---|---|---|
| Speed to funding | Days | Weeks to months | Days | Months |
| Secured by | Named invoices | Blanket / covenant package | Future card sales | Ownership |
| Balance sheet | Sale or short-term | Debt | Expensive debt | Dilution |
| Typical cost | 1.5–4.5% / 30 days | Prime + | 20–40% effective | Permanent |
| Grows with sales | Yes | Only after a review | Until it hurts | No |
Factoring fee range is a market range9, not a quote.
Who this is for
- Growing faster than cash allows
- B2B invoices to creditworthy customers
- Seasonal or lumpy demand
- A large order you can’t fund
- Declined for a bank line on time-in-business
Who this is not for
- Consumer sales
- Disputed or progress-billed invoices
- Heavy customer concentration
- Already at a cheaper bank facility with headroom
Verticals
AR factoring for distributors we already know.
- Industrial distribution cash flow
- Building materials cash flow
- MRO, electrical, plumbing & HVAC cash flow
- Auto and truck parts cash flow
- Packaging & janitorial supply cash flow
- Medical & dental supply cash flow
Do you take over collections?
Not by default. Notice versus silent structure is a credit decision. Collections posture stays yours unless you ask otherwise.
What advance rates and fees should we expect?
Advance rates to 90%+ on approved invoices, with fees typically from 1.5% per 30 days. Concentration, payer credit, and invoice quality set the grid. The calculator on this page is illustrative.
Is factoring cheaper than a bank line?
No. A bank line is cheaper when you can get it. Factoring is the correct tool when speed, invoice-level security, or a facility that grows with sales matters more than the last 200 basis points.
How fast is funding?
Advance funds typically hit in 24–48 hours after an approved invoice is submitted. That is a typical window, not a promise on every file.
What is factoring secured by?
Named invoices from creditworthy B2B payers — not a blanket charge on the whole company.
Does the facility grow with sales?
Yes, when the invoices are approved. A bank line grows only after a review.
Who is factoring not for?
Consumer sales, disputed or progress-billed invoices, heavy customer concentration, and companies already sitting on a cheaper bank facility with headroom.
Are you the funder?
No. Novaline is an intermediary. Funding is provided by third-party factors.