Frequently Asked Questions
Everything you need to know about invoice factoring and how CashMyInvoice helps you find the best factoring partner.
About CashMyInvoice
What is CashMyInvoice?
CashMyInvoice is a free comparison and matching service that helps businesses find the best invoice factoring company for their needs. We are NOT a factoring company - we connect you with trusted factoring partners who specialize in your industry.
Is CashMyInvoice really free?
Yes, 100% free! We never charge businesses anything for our service. Factoring companies pay us a referral fee when we introduce them to qualified leads - so you get our comparison service at no cost.
How do you make money if it's free?
Factoring companies pay us a referral fee when we connect them with qualified businesses. This means our incentive is to find you the best match - not to push you toward any particular company.
Am I obligated to use one of your partner companies?
Absolutely not. You're under no obligation. We provide free quotes and information - you decide if and when to move forward. There's no pressure and no commitment required.
About Invoice Factoring
What is invoice factoring?
Invoice factoring is a financing method where a business sells its unpaid invoices to a factoring company at a discount. Instead of waiting 30-90 days for customers to pay, you get cash within 24-48 hours. The factoring company then collects payment from your customers.
How much does invoice factoring cost?
Rates typically range from 1% to 5% of the invoice value, depending on your industry, invoice volume, customer creditworthiness, and payment terms. Our partners can give you exact quotes based on your specific situation.
Do I need good credit to qualify for factoring?
Not necessarily! Factoring companies primarily evaluate your customers' credit, not yours. Many businesses with poor personal or business credit qualify for factoring because approval is based on the creditworthiness of your customers.
Will my customers know I'm using factoring?
In most cases, yes. Your customers will be notified to send payments to the factoring company instead of you. However, some factoring companies offer non-notification factoring for an additional fee. We can connect you with partners who offer this option.
What types of invoices can be factored?
Most B2B (business-to-business) and B2G (business-to-government) invoices can be factored. The invoices must be for completed work or delivered goods - you can't factor invoices for work not yet done. Consumer invoices typically cannot be factored.
The Process
How does the matching process work?
First, you tell us about your business - industry, invoice volume, and needs. We then analyze your situation and match you with 1-2 factoring companies from our network that specialize in your industry. They contact you directly with no-obligation quotes.
How long does it take to get matched?
We typically match you with factoring partners within 2 hours during business hours. The factoring companies will then reach out to you directly to discuss your needs and provide quotes.
How quickly can I get funded once I choose a company?
Once you choose a factoring company and complete their application, most businesses can get funded within 24-48 hours. Some factoring companies offer same-day funding for approved accounts.
What information do I need to provide?
To get matched, we just need basic information about your business - company name, industry, approximate monthly invoice volume, and contact information. The factoring company you choose will need additional documentation like invoices, customer information, and business financials.
Costs & Terms
What is an advance rate?
The advance rate is the percentage of the invoice value you receive upfront. Typical advance rates range from 80% to 98% depending on your industry and the factoring company. You receive the remaining amount (minus fees) when your customer pays.
Are there any hidden fees?
Reputable factoring companies are transparent about their fees. Common fees include the factoring fee (discount rate), wire transfer fees, and sometimes monthly minimum fees. We recommend asking potential partners for a complete fee schedule before signing.
Do I have to factor all my invoices?
It depends on the factoring company. Some require you to factor all invoices (whole ledger factoring), while others allow you to choose which invoices to factor (spot factoring or selective factoring). We can match you with companies that offer the flexibility you need.
Are there long-term contracts?
Contract terms vary by factoring company. Some require 6-12 month contracts, while others offer month-to-month or no-contract options. If flexibility is important to you, let us know and we'll match you with partners who offer shorter or no-contract terms.
Still Have Questions?
Our team is here to help. Talk to Casey, our AI assistant, or give us a call.
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