How long does it take for a factoring company pay? Is receivable financing really a quick method for getting working capital? Factoring invoices is about as fast as you can get for any type of commercial financing. The application is a few pages, and within a day, a proposal offer is submitted. Upon agreement of the factoring terms & conditions the accounts receivable Purchase & Sale Agreement is delivered. When the signed agreement is returned the funding will start. This usually can take from 5 – 10 days.
Once the factoring account is set up, 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.