Free tool · 60-second fit check
Do I qualify for invoice factoring?
The short answer
You likely qualify for invoice factoring if you invoice other businesses or government agencies on net terms, those customers pay reliably, and you need $50K or more. Your own credit matters less than your customers’ credit. This check routes you to express, direct, network or specialty funding, and tells you plainly when a file falls outside what our partners buy.
Your likely route
Your route
Why
What to expect
Documents to prepare
This is a quick fit check, not an approval or a quote. Funders decide after reviewing your receivables and customers.
Prefer to skip the quiz? Go straight to the application.
What do factoring companies look at to approve a business?
Factors underwrite your customers first and your business second. Because factoring is the sale of receivables, not a loan, the funder is mostly betting that your customers will pay the invoices it buys. Creditworthy business or government customers, clean invoices for completed work, and no competing liens on receivables matter more than your credit score or time in business.
That is why companies a bank turned down often still qualify. A young company with two Fortune 500 customers can be a better factoring file than an older one selling to shaky accounts. See how invoice factoring works for the mechanics.
What do the funding routes mean?
Each route reflects where your file is most likely to get funded, based on size and complexity.
- Small-ticket express ($50K–$500K): clean B2B files with lighter underwriting. A clean file can often fund in about a week. See small-ticket factoring.
- Direct factoring ($50K–$3MM): the core box for B2B and government receivables. See invoice factoring.
- Network placement ($3MM–$25MM): larger factors and asset-based lenders. See large AR facilities.
- Specialty: SBA subordinations, factor buyouts, covenant defaults and MCA payoffs, the files most factors pass on.
- Outside the box: consumer receivables, freight trucking, facilities under $50K and most medical insurance billing. We say so up front.
What disqualifies a business from invoice factoring?
The most common deal-breakers are receivables owed by consumers, invoices for work not yet performed, and customers with poor payment histories. Very old invoices, commonly past 90 days, are usually ineligible. Heavy concentration in one weak customer also limits what a funder will advance.
Tax liens, MCA balances and an SBA loan are not automatic disqualifiers. They change the structure: the funder needs a payment plan, a payoff or a subordination agreement before it can take first position on receivables. Our SBA loan and factoring guide explains how that works.
What happens after I get my result?
The application button carries your answers forward, so you will not retype them. A person on our team reviews the file, may ask a few follow-up questions, and routes it to the funding partners that fit. There is no charge to you for the review.
This tool is a fit check, not an approval. Final terms depend on your receivables, your customers and each funder’s underwriting.
Questions people ask
Can I qualify for factoring with bad credit?
Often, yes. Factors focus on your customers’ ability to pay, so a low personal or business credit score is rarely the deciding factor. Open tax liens, judgments or fraud history matter more than the score itself.
How long do I need to be in business to factor invoices?
Many funders work with young companies, sometimes from the first invoice, if the customers are creditworthy. A short history may mean a lower starting line or a lower advance rate until there is a payment track record.
What is the minimum facility size?
Our funding partners start at $50K facilities. Below that, a small-business line of credit or a spot-factoring platform is usually a better fit, and we will say so rather than waste your time.
Do you factor trucking or freight invoices?
No. Freight and owner-operator trucking factoring is a specialized market served by dedicated freight factors, and our partners do not offer it. We can sometimes point you in a better direction.
Can I factor invoices if I already have an SBA loan?
Usually, with a subordination or intercreditor agreement. The SBA lender typically holds a blanket lien, so it must agree to let the factor take first position on receivables. That is one of our specialty routes.
Does checking whether I qualify affect my credit?
No. This tool asks no personal information and runs entirely in your browser. Funders may run credit checks later in underwriting, with your authorization.
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Numbers look right? Get real terms.
Two minutes, no credit pull. A specialist routes your file to the funder built for it, from $50K to $25MM.