Invoice Factoring
Turn unpaid invoices into cash today.
Talk to an underwriter at (555) 123-4567
What it is
Invoice factoring is a way for B2B businesses to convert outstanding receivables into cash without waiting 30, 60, or 90 days for customers to pay. We advance most of the invoice value up front, collect the payment from the customer, and remit the remainder to you minus a discount fee. It is widely used in trucking, staffing, manufacturing, and professional services.
Invoice factoring is the sale of your unpaid invoices to Sprint at a discount. We advance a percentage of each invoice up front (often 80 to 95 percent), take responsibility for collecting from your customer, and pay you the remaining balance, less the factor fee, when the invoice is collected. The facility is ours, the relationship is direct.
How factoring funding works
The path from a quick conversation to money in your account.
Submit a quick file
Send three months of business bank statements and a short application. No hard credit pull at this stage.
We underwrite in-house
A Sprint underwriter reviews the file end to end and walks you through the offer in plain English — amount, term, rate, fees, prepayment.
Sign and fund
Sign the loan documents electronically, we verify, and we wire the funds to your business account.
Is this right for you?
Honest pros and cons. Read both before you decide.
Pros
- Tied to your customers' credit, less dependent on your own credit
- Scales with your sales rather than capping at a fixed limit
- Frees you from collections work on factored invoices
- Strong fit for fast-growing B2B businesses
Things to watch
- Customers will be aware that a factor is involved
- Cost is a percentage of invoice value, which adds up at scale
- Some agreements require minimum monthly volume
- Not a fit for B2C businesses or for short-pay customers
What we will need from you
A short, predictable list. Most owners gather this in under an hour.
- Sample invoice and customer contract
- Aging report (accounts receivable summary)
- Three months of business bank statements
- Articles of organization or incorporation
- Customer list with credit limits if available
Factoring questions
What owners ask us most when they are weighing this product.
Do I have to factor every invoice?
Not always. Some facilities are spot factoring, where you choose which invoices to submit. Others are whole-ledger, requiring all invoices for designated customers to flow through. We structure the facility around your business.
What is the difference between recourse and non-recourse factoring?
Recourse factoring means you ultimately bear the loss if your customer does not pay. Non-recourse shifts the credit risk on approved customers to us, usually for a higher fee. Most small business factoring is recourse with credit checks on each customer.
Will my customers know I am factoring?
Generally yes. The customer is asked to send payment to our lockbox or bank account. We handle this professionally as a normal accounts receivable practice.
How does the advance process work?
After the initial setup, advances on verified invoices move promptly after submission. We verify the invoice with your customer, confirm the receivable is in good standing, and wire the advance to your account.
Related products
Other options small business owners often weigh next to factoring.
Business Line of Credit
A revolving credit line from Sprint you can draw from, repay, and reuse as you go.
Learn moreSmall Business Term Loan
A traditional installment loan from Sprint with a clear amortization schedule and predictable monthly payments.
Learn moreSBA Loans
SBA-guaranteed loans from Sprint, with longer terms and lower payments for qualifying borrowers.
Learn moreTalk to us about factoring.
A Sprint underwriter will look at your situation and tell you straight whether this is the right fit — or whether something else makes more sense.
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