How soon does the factoring company pay? Is invoice financing really fast? Factoring invoices is about as fast as you can get for commercial financing. The application is a couple pages, most of the time not even requiring old tax returns. Within a day, a proposal offer is sent out. Upon agreement of the factoring terms & conditions the accounts receivable Purchase & Sale Agreement is overnight delivered. When the signed agreement is returned the funding can start. This usually can take from 5 – 10 days.
Once the factoring account is set up, then getting an advance on an invoice is a matter of verification and notification. Notify the account debtor (customer) to make payment directly to the factoring company, and verifying that the work has been completed. This can usually take anywhere from a few hours to the next day. So after submitting an invoice from a completed job, a bank wire goes out within 24 hrs. Invoice factoring is very easy to set up and quick to deliver.