There are important considerations concerning your business model that might make it easier to get invoice factoring. How you structure your deals with customers is more important than you might think. Just a slight change on how you offer your services could alter getting or not getting financing on the receivables.
For example when initially setting up your agreement with the customer, specifically outline the work to create DELIVERABLES or MILESTONES that allow you to invoice. This is much more preferable than billing along the way or PROGRESS billing. By completing a milestone the customer is obligated to pay for something that they received rather than having them decide along the way that they’re no longer happy with your work and stop making payments.
Pre-billing for services is always a problem for invoice factoring. It happens a lot in publishing and advertising when you invoice the customer for a publication that will run six months in the future. When it comes to factoring you are assigning the proceeds of an obligation to a third party. If the work has not been completed and accepted the customer has too many outs when it comes to paying the bill.
This really transfers to all types of debt lending. The cleaner the deal the less outs the customer has, the better time you will have in the long run.