Factoring 101

Everything you need to know about invoice factoring and how it can fuel your business growth.

The Basics

What Is Invoice Factoring?

Factoring is not difficult to understand or use. Your company continues to operate and bill your customers in the usual way. Once you begin factoring, you simply send a copy of your invoices to BTB Capital.

BTB then provides you with a factoring advance of 80% of the face amount of the invoices. Once BTB is paid by your customer, the reserved 20% is released to your company, minus a small financing fee for the time the advanced funds were outstanding.

The factoring fee is based not on your company's financial strength — but on the quality of your customers' accounts and their creditworthiness. Fees can be as low as 2% of the invoice amount, depending on the level of risk and the time the invoice is outstanding.

Key Benefits

  • No debt incurred — factoring is not a loan
  • No monthly payments
  • You control how much to factor and when
  • Provides financial flexibility for high-growth companies
  • Approval based on your customers' credit, not yours

Quick Numbers

Advance rate 80% of invoice value
Reserve released 20% (minus fee)
Minimum fee From 2% of invoice
Setup time 3–5 business days
Funding turnaround 12–24 hours

First-Time Offer

New clients receive a 1% fee on your first 30-day funding. Get started today with no application fee and no monthly fees.

The Process

How It Works, Step by Step

1

Apply & Get Approved

Complete our online application. Account setup typically takes 3–5 business days.

2

Invoice Your Customers

Continue billing your customers as normal. Send BTB a copy of those invoices.

3

Receive 80% Advance

We wire 80% of the invoice value directly to your bank account in 12–24 hours.

4

Customer Pays BTB

Your customer pays the invoice to BTB. We release the remaining 20%, minus our fee.

Common Questions

Factoring FAQ

Is factoring a loan?

No. When you factor invoices, you are selling your receivables — not borrowing money. You incur no debt and make no monthly payments.

Do I have to factor all my invoices?

No. You control which invoices to factor and when. There are no minimum requirements, giving you complete flexibility.

What does it cost?

Fees start as low as 2% of the invoice amount. The rate depends on your customers' creditworthiness and how long invoices are outstanding.

How quickly can I get funded?

After your account is set up (3–5 business days), you can typically receive funding within 12–24 hours of submitting invoices — sometimes the same day.

What industries do you serve?

We work with manufacturers, wholesalers, distributors, service companies, staffing agencies, trucking companies, and more.

What if I want to move to a bank loan later?

We actively support your transition to traditional bank financing. We work with many bank partners who can make that process smooth and easy.

Have More Questions?

Our factoring specialists are happy to walk you through the process.

Apply Now Talk to a Specialist