The Short Answer
Most businesses receive their first advance within 24-48 hours of approval. Complete funding timeline:
- Application: 10-15 minutes
- Approval: 24-48 hours
- First Funding: Same day to 24 hours after approval
- Subsequent Invoices: 24 hours or less
Complete Funding Timeline
Application Submission
Time Required: 10-15 minutes
You'll provide basic information:
- Business name, address, and tax ID
- Customer list with contact information
- Sample invoices or current receivables
- Recent bank statements (usually last 3 months)
Review & Customer Verification
Time Required: 24-48 hours
The factoring company will:
- Review your application and documentation
- Run credit checks on your customers (not you)
- Verify invoice authenticity with your customers
- Prepare your factoring agreement
Pro Tip: Having complete, organized documentation ready can speed this up to just a few hours.
Approval & Agreement
Time Required: 1-2 hours
Once approved:
- You'll receive your factoring agreement to review
- Review terms: advance rate, fees, minimum volumes
- Sign electronically (takes minutes)
- Submit your first batch of invoices for funding
First Funding!
Time Required: Same day to 24 hours
🎉 Money Arrives in Your Account
You receive 80-95% of your invoice value via wire transfer or ACH
Going forward, submitting new invoices is fast:
- Upload invoices through online portal
- Receive funds within 24 hours (often same day)
- No re-approval needed for existing customers
Start Your Application Today
Get approved and funded in as little as 48 hours
What You'll Need to Get Started
Having these documents ready before you apply can significantly speed up the process:
Basic Business Information
- Legal business name and DBA (if different)
- Federal Tax ID (EIN)
- Business address and contact information
- State of incorporation and formation date
- Owner/principal information
Financial Documents
- Last 3 months of business bank statements
- Accounts receivable aging report
- Current year-to-date profit & loss statement
- Previous year's tax return (if available)
- Balance sheet (if available)
Invoice & Customer Info
- List of current customers with contact details
- Sample invoices from past 3 months
- Outstanding invoices you want to factor
- Proof of delivery or work completion
- Customer contracts or purchase orders
Optional (But Helpful)
- Articles of incorporation or LLC formation docs
- Business licenses and certifications
- Insurance certificates
- Trade references
- Bank reference letter
Don't Have Everything?
Don't let missing documents stop you from applying. Many factoring companies can work with limited documentation, especially if you have clean invoices and creditworthy customers. Start the conversation and they'll tell you exactly what's needed for your situation.
How to Get Funded Even Faster
While most businesses are funded within 2-3 days, you can accelerate the process with these strategies:
1. Have Documents Organized and Ready
Create a folder with all required documents before you apply. Use cloud storage like Google Drive or Dropbox so you can quickly share everything at once. This can cut approval time by 50%.
2. Alert Your Customers in Advance
Give your customers a heads-up that the factoring company will contact them to verify invoices. This prevents delays from unreturned calls or emails. A simple email works: "Our financing partner may reach out to verify our invoices. Please respond promptly—thanks!"
3. Submit Clean, Professional Invoices
Make sure your invoices are complete, accurate, and professional. Include clear payment terms, detailed descriptions of work, customer PO numbers, and contact information. Sloppy invoices raise red flags and slow down approval.
4. Choose Customers with Good Credit
For your first batch of invoices, submit those from your customers with the strongest credit and payment history. This speeds up approval and gets you better rates. You can add other customers later.
5. Be Responsive to Requests
Answer phone calls, respond to emails quickly, and provide any additional information promptly. Every hour you delay in responding adds time to the approval process. Many factors offer same-day approval if you're highly responsive.
6. Request Wire Transfer (Not ACH)
Wire transfers arrive the same day (sometimes within hours), while ACH transfers take 1-2 business days. There may be a small wire fee ($15-30), but it's worth it if you need money immediately.
Need Funding Fast?
Call us now—we can start your application over the phone
Speed Comparison: Factoring vs. Other Financing
| Financing Type | Application Time | Approval Time | Funding Time | Total Time |
|---|---|---|---|---|
| Invoice Factoring | 10-15 minutes | 24-48 hours | Same day - 24 hours | 2-3 days |
| Bank Loan | 2-4 hours | 2-6 weeks | 1-2 weeks | 3-8 weeks |
| SBA Loan | 4-8 hours | 4-12 weeks | 1-2 weeks | 5-14 weeks |
| Business Line of Credit | 1-2 hours | 1-3 weeks | 3-5 days | 2-4 weeks |
| Merchant Cash Advance | 30 minutes | 1-3 days | 1-2 days | 2-5 days |
Key Advantage: Invoice factoring is one of the fastest financing options available, typically faster than everything except merchant cash advances (which are significantly more expensive). Plus, once you're set up, future invoices are funded within 24 hours with no reapplication needed.
Common Delays and How to Avoid Them
Delay: Customers Don't Respond to Verification
The factor needs to verify invoices with your customers. If customers don't return calls or emails, approval is delayed.
✓ Solution: Give customers advance notice. Consider introducing the factoring company via email with your customer CCed.
Delay: Incomplete or Missing Documentation
The approval process stalls when you don't provide all requested documents or information is incomplete.
✓ Solution: Have everything organized before you apply. If you don't have something, ask if you can proceed without it or provide it later.
Delay: Invoices Have Issues
Invoices with errors, disputes, or that don't match supporting documents slow down approval.
✓ Solution: Only submit invoices for completed work that your customer has accepted. Ensure invoices match your contracts/POs and proof of delivery.
Delay: Poor Customer Credit
If your customers have bad credit or payment history, additional due diligence is required or the invoices may be declined.
✓ Solution: Start with your best customers first. Once approved, you can gradually add customers with weaker credit.
Delay: Applying on Friday or Before Holidays
Applications submitted Friday afternoon may not be reviewed until Monday, and holidays add additional delays.
✓ Solution: Apply early in the week if possible. If you need Friday funding, apply on Wednesday.