Invoice Factoring

Get Paid Today, Not in 30-90 Days

Invoice factoring (also called accounts receivable factoring) lets you sell your unpaid invoices to get immediate cash. Instead of waiting 30, 60, or 90 days for customers to pay, you get 80-95% of the invoice value within 24 hours.

This isn't a loan. You're selling an asset (your invoice) for immediate cash. No debt goes on your balance sheet, and you free up cash flow to pay employees, buy inventory, and grow your business.

How Invoice Factoring Works

Step 1: You deliver goods/services to your customer and send an invoice for $10,000 (net 60 days)

Step 2: You sell that invoice to PMF LA and receive $9,000 (90%) within 24 hours

Step 3: Your customer pays PMF LA the $10,000 when the invoice is due (60 days)

Step 4: PMF LA sends you the remaining $1,000 minus a small factoring fee (typically 1-5%)

The result: You got $9,000 today instead of waiting 60 days. Your cash flow is unlocked.

Who Benefits from Invoice Factoring?

• B2B Companies: Businesses that sell to other businesses (not consumers)
• Net 30/60/90 Payment Terms: Companies with long payment cycles
• Growing Businesses: Need cash to fulfill new orders but customers haven't paid yet
• Staffing Agencies: Need to pay employees weekly but clients pay monthly
• Trucking/Logistics: Waiting on shippers to pay freight bills
• Manufacturers: Need cash to buy raw materials for the next order
• Wholesalers/Distributors: Long payment terms strain cash flow

Requirements

• Sell to businesses (B2B), not consumers (B2C)
• Invoices for completed work (no work-in-progress)
• Creditworthy customers (we check their credit, not yours)
• No liens, bankruptcies, or legal issues with the invoices
• Minimum invoice value: typically $500-$1,000

Factoring vs. Traditional Loans

Invoice Factoring:

• ✅ Not a loan (no debt)
• ✅ Fast approval (24-48 hours)
• ✅ Based on customer credit (your credit doesn't matter)
• ✅ Immediate cash (24 hours)
• ✅ Flexible (factor as needed)

Traditional Bank Loan:

• ❌ Creates debt on balance sheet
• ❌ Slow approval (weeks/months)
• ❌ Based on YOUR credit and financials
• ❌ Fixed monthly payments
• ❌ Collateral required

Factoring Rates

Factoring fees typically range from 1-5% of the invoice value depending on:

• Invoice size: Larger invoices = lower rates
• Customer credit: Better customers = lower rates
• Payment terms: Net 30 = lower rate than Net 90
• Volume: More invoices = better rates
• Industry: Some industries have higher/lower risk

Example: $100,000 invoice, 2.5% fee = $2,500 cost to get $97,500 immediately instead of waiting 60 days.

Real-World Example

Scenario: A staffing agency places 50 workers at a client. The weekly payroll is $25,000, but the client pays invoices Net 45 days.

The Problem: The agency needs to pay workers every week ($25K) but won't get paid by the client for 45 days. That's $112,500 in cash needed upfront.

The Solution: The agency factors the invoices with PMF LA. They get $23,750 (95%) within 24 hours of submitting each invoice. When the client pays 45 days later, PMF LA sends the remaining balance minus a 2% fee.

Result: Agency pays employees on time, takes on new clients, and grows without needing a $100K+ line of credit.

Why Choose PMF LA for Invoice Factoring?

• 24-Hour Funding: Get cash fast when you need it most
• No Minimum Volume: Factor one invoice or hundreds
• Transparent Pricing: No hidden fees, clear rate structure
• Customer Service: Dedicated account manager for your business
• Nationwide: Serving businesses across the US & Canada

Frequently Asked Questions

Q: Does factoring hurt my credit?
A: No. Factoring isn't a loan and doesn't appear on your credit report.

Q: What if my customer doesn't pay?
A: Most factoring is "recourse," meaning you're responsible if the customer doesn't pay. Some lenders offer "non-recourse" factoring (we absorb the loss) at higher rates.

Q: Can I pick which invoices to factor?
A: Yes! You can factor all invoices or just select ones as needed.

Q: Will my customers know I'm factoring?
A: Yes. PMF LA becomes the party collecting payment on factored invoices. Most B2B customers are familiar with factoring.