1. Apply and Set Up
You share basic company details, a customer list and an accounts receivable aging report so we can review the customers you want to factor.
Texas Invoice Factoring
Sell your unpaid B2B invoices for cash now instead of waiting 30 to 90 days. Here is how invoice factoring works, what it costs, and who it suits.
The Product Explained
Invoice Factoring in Texas
Invoice factoring is the sale of an unpaid business-to-business invoice to a factoring company at a small discount. You deliver the work, bill your customer as usual, and then sell that invoice to us. We advance most of its value right away, collect payment from your customer on the original terms, and send you the remainder minus our fee once the customer pays.
Because you are selling an asset rather than borrowing, factoring does not add a loan to your balance sheet, and approval depends mainly on how reliably your customers pay. That makes it a practical source of working capital for companies whose growth is outrunning their bank's appetite. If you want the full sequence in more detail, our how it works guide walks through it.
- Advances typically 80% to 90% of the invoice value
- Rates starting at 1.2%, quoted before you commit
- Factoring limits from $100K to $100M
- No start-up fees and no month-to-month contracts
- Approval leans on your customers' credit, not years of tax returns
How Invoice Factoring Works, Step by Step
The process is the same whether you factor one invoice or your entire ledger. Setup takes the longest; after that, each new invoice moves quickly.
2. Do the Work and Invoice
You deliver goods or services and bill your customer exactly as you do today, with remittance directed to the factoring account.
3. Submit and Verify
You send the invoice with supporting paperwork. We confirm the invoice with your customer and process it within 48 hours.
4. Receive the Advance
Once processed, the advance of typically 80% to 90% can reach your account in as fast as 2 hours.
5. Customer Pays
Your customer pays on their normal 30, 60 or 90-day terms, and we handle the follow-up so your team does not have to.
6. Receive the Rebate
When payment arrives, we release the reserve balance to you minus the agreed factoring fee.
Invoice Factoring vs. a Bank Loan
Both put cash in your account, but they are judged on different things and behave differently as your business grows. For a broader look at revolving credit, see invoice factoring vs. a line of credit.
| Feature | Invoice Factoring | Bank Loan |
|---|---|---|
| What it is | The sale of invoices you have already earned. | Borrowed money repaid with interest on a fixed schedule. |
| What approval depends on | Mainly the payment history and credit of your customers. | Your own credit, profitability, collateral and time in business. |
| How the amount is set | Rises and falls with the invoices you generate. | Fixed at approval; increases require a new application. |
| Time to first funding | Days for setup, then 48-hour processing per invoice. | Often several weeks of underwriting. |
| Balance sheet effect | Converts receivables to cash without adding debt. | Adds a liability and often restrictive covenants. |
What Invoice Factoring Costs
Factoring fees are generally a small percentage of each invoice, roughly 1% to 5%, with rates starting at 1.2%. The fee you pay depends on how much you factor each month, how long your customers take to pay, the size of each invoice and the credit quality of the customers behind them. Faster-paying, well-rated customers cost less to factor.
We quote the fee up front, so you can compare it with the value of having the cash now: a supplier discount you can take, a payroll you can meet, or a contract you can accept. Whether the agreement is recourse or non-recourse also affects the price.
- Monthly volume you plan to factor
- Customer payment terms and history
- Average invoice size
- Recourse or non-recourse structure
Who Invoice Factoring Suits
Factoring fits companies that sell to other businesses on credit terms. It is not designed for cash sales to consumers.
Growing Companies
Sales are climbing faster than cash, and each new order widens the gap between paying costs and getting paid.
Businesses With Slow-Paying Customers
Large customers insist on net-60 or net-90 terms while your payroll and suppliers expect payment now.
Newer Businesses
You have creditworthy customers but not the operating history a bank wants, so approval based on their credit opens a door.
Seasonal Operations
Cash needs spike during busy months, and factoring volume can rise and fall with them.
Industries With Long Billing Cycles
Trucking, construction, staffing, manufacturing and oil field services all carry heavy costs before the customer pays.
What You Need to Get Started
Setup is light compared with a bank application. We focus on your invoices and the customers who owe them, so we do not ask for a long credit history or multi-year tax returns. Our qualification guide explains what we look for.
We work with businesses across Texas, including Houston, Dallas, San Antonio and Austin. Most applicants can begin with a short call and a current aging report.
- Basic company and ownership information
- A current accounts receivable aging report
- Sample invoices and proof of delivery or completion
- A list of the customers you want to factor
Texas Working Capital
Get paid faster with invoice factoring in Texas.
Call now or request a free estimate to see how invoice factoring can support payroll, materials, new orders, and day-to-day cash flow.
FAQ
Texas Invoice Factoring FAQs
Straight answers for Texas businesses comparing invoice factoring options.
Free Estimate
Fast cash from your approved invoices
Talk with a Texas factoring team that understands payroll, receivables, slow-paying customers, and the pressure of keeping operations moving.
512 271 5100