Invoice Factoring

About Invoice Factoring

Invoice factoring is a type of financing that involves the selling of outstanding receivables to a third party (e.g., Alternative Funding Group). Upon paying for most of the balance up front, the third party collects payment on each invoice from the customer that it names. Also known as accounts receivable factoring, it is a convenient way for a company to remedy its cash flow if it is suffering because of unpaid customer invoices.


  • Access Missing Accounts Receivable Funds
  • Efficiently Allocate Company Resources
  • Maintain Cash Flow
Invoice Factoring
Invoice Factoring

Why do businesses need Invoice Factoring?

Business operations can sometimes be hampered by interruptions in cash flow. Unpaid customer invoices influence a company’s cash flow as well as its ability to utilize its resources efficiently. For that reason, it makes sense for such a company to recover missing funds by selling its unpaid accounts receivable to a third party. Its cash flow is remedied and its resources can be focused on profitable business endeavors. A recovery of US business funds from delinquent accounts is made the responsibility of another organization.

Who is Alternative Funding?

Alternative Funding Group is the most trusted factoring company and lender of hassle-free business loans. The number of businesses we have worked with is commensurate with our willingness to help small businesses and entrepreneurs. It demonstrates our understanding of the unique needs and challenges that are found in various industries. No company is the same, and neither is every industry. At Alternative Funding Group, we pride ourselves in helping make business possible for companies as diverse as you can imagine.

Invoice Factoring
Invoice Factoring

How can Alternative Funding help businesses with Invoice Factoring?

Simply put, helping businesses is what we do, and accounts receivable factoring is just one of the ways in which we do it. By paying for your company’s unpaid invoices, we help restore cash flow so that your business operations are not left hampered. We purchase the invoices and assume the responsibility of collecting the business funding on delinquent accounts. In other words, we do what we do best so that your company can be free to focus on doing what it does best.

Recommendations From Other Businesses

I had an excellent experience this week with Alternative Funding to obtain a loan in 2021. Their online format made it really easy where they asked questions and then used the answers to guide me towards the loan application completion. I was pleasantly surprised how easy it was. I applied on Tues and had the loan in my bank account on Friday. Very thankful, and impressed.

Tides G.

We were a Alternative Funding customer since 2018 but matured out of needing factoring services. We started out as a small company and now can proudly say we stand alone financially. We could not have accomplished that feat without the assistance of Alternative Funding. They have assisted us in Invoice Factoring, processing, printing, and shipping our invoices. They also assisted in managing the aging report of those invoices and helped us with our cash-flow

Eric B.

My company overcame a serious cash flow problem by availing Invoice Factoring options. I am happy with the experience I had with this innovative service.

Sebastian D.


Get answers to questions from our other clients

What is invoice factoring?

Invoice factoring is a type of invoice finance. It involves the selling of outstanding receivables to a factoring company — a financial services agency that pays for the unpaid invoices at a discount and then collects payments. With a lump sum of cash recovered and the task of collections left to a third party, it allows companies to allocate their resources efficiently. More focus can be had on business maintenance and growth.

How is invoice factoring different from a bank loan?

A bank loan requires taking on debt and invoice factoring does not. Invoice factoring is not a loan. It is the selling of unpaid receivables to a factoring company (e.g., Alternative Funding Group) at a discount. By selling its accounts receivables, a company improves its cash flow. In addition, it is able to allocate its resources more efficiently than it would if it took on the task of collecting individual payments on its own.

The ease of approval is another difference between invoice factoring and a bank loan. Small businesses sometimes find it difficult to obtain a bank loan, and when they do, unfavorable terms and conditions apply. Invoice factoring is not predicated on a business’s credit score and is much easier to obtain in comparison. Generally, alternative funding agencies are easier for small and medium-sized businesses to work with than traditional lenders.

*Due to differing bank policies, it can take several business days before your funds are available.

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