Invoice Factoring
Convert outstanding B2B invoices into immediate cash by selling them at a discount. Eliminate the wait for net-30, net-60, or net-90 terms and stabilize your cash flow.
Overview
What Is a Factoring?
Our Invoice Factoring program turns your unpaid receivables into working capital, often within 24 hours of invoice submission. Rather than waiting weeks or months for your customers to pay, you sell those invoices to DD Capital at a small discount and receive an advance of 80% to 95% of the invoice value upfront. Once your customer pays, the remaining balance is released to you, less a transparent factoring fee. Funding amounts scale with your receivables ledger, ranging from $25,000 to $10,000,000 in available capacity. Approval is driven primarily by the creditworthiness of your customers rather than your own balance sheet, making factoring particularly accessible for growing businesses, startups, and companies recovering from past credit challenges. Our advisors work with you to determine whether recourse or non-recourse factoring best fits your risk profile.
Key Features
- Advances of 80% to 95% of invoice face value
- Available factoring capacity from $25,000 to $10,000,000
- Funding within 24 hours of approved invoice submission
- Recourse and non-recourse options available
- Spot factoring or full-ledger programs supported
- Approval driven by customer credit rather than your own
Process
How It Works
Submit Your Invoices
Upload the invoices you would like to factor through our secure portal. Provide basic customer information so our team can verify the receivables and conduct a credit review of your customers.
Receive an Advance
Once invoices are verified and approved, you receive an advance of 80% to 95% of the invoice value, typically deposited within 24 hours. The remaining balance, less the factoring fee, is held in reserve until your customer pays.
Customer Pays
Your customer remits payment directly to a lockbox account managed on your behalf. Our team handles invoice tracking and reconciliation so you can focus on running your business.
Reserve Released
When your customer pays in full, the reserved balance is released to you, less the agreed factoring fee. There are no hidden charges and the cost of capital is fully transparent from day one.
Benefits
Why Choose a Factoring?
Immediate access to capital tied up in receivables
Funding capacity grows automatically as your invoiced volume grows
Approval based on your customers' credit, not your own balance sheet
Outsourced collections reduce administrative overhead
No new debt added to your balance sheet under non-recourse programs
Eligibility
Qualification Requirements
- Operate a B2B or B2G business that invoices commercial customers
- Outstanding invoices payable within 90 days
- Customers with verifiable credit and a history of timely payment
- No outstanding liens on accounts receivable
- Minimum monthly invoiced volume of $25,000
Use Cases
Common Uses
- Smoothing cash flow gaps caused by extended customer payment terms
- Funding payroll without waiting on slow-paying clients
- Purchasing materials and inventory to fulfill new contracts
- Taking on larger customers without straining liquidity
- Eliminating the operational burden of accounts receivable collections
- Stabilizing finances during rapid revenue growth
FAQ
Factoring Questions
Factoring is the sale of an asset (your invoice), not a loan. There is no debt added to your balance sheet under non-recourse arrangements, and there are no fixed monthly payments. You receive an advance against a specific invoice, and the transaction is settled when your customer pays. This makes factoring an off-balance-sheet financing tool rather than a credit obligation.
Under recourse factoring, you remain responsible for the invoice if your customer fails to pay. Under non-recourse factoring, DD Capital absorbs the credit risk if a customer becomes insolvent. Non-recourse programs typically carry slightly higher fees in exchange for credit protection. Your funding advisor will help you determine which structure best fits your customer mix and risk tolerance.
In most cases, yes. Customers are notified to remit payment to the designated lockbox or bank account, which is standard industry practice. Many of our clients find that their customers view factoring as a normal business arrangement, particularly in industries where it is common. We handle all communications professionally to preserve your customer relationships.
Factoring fees typically range from 1% to 5% of the invoice value, depending on factors such as invoice size, customer credit quality, payment terms, and total monthly volume. Larger and faster-paying invoices generally carry lower rates. Your funding advisor will provide a complete fee schedule before you commit, with no hidden charges.
Yes. We offer both spot factoring, where you select individual invoices to factor on demand, and full-ledger programs, where all qualifying invoices are factored on an ongoing basis. Spot factoring offers maximum flexibility, while full-ledger programs typically deliver the most favorable rates due to consistent volume.
Ready to Get Started with a Factoring?
Apply today and a funding advisor will walk you through your options.