As an invoice factoring company, we provide our clients financing by making working capital advances on commercial creditworthy accounts receivables. An invoice is the result of a product and/or service that has been delivered / completed and accepted by the customer. Until the customer agrees the invoice will be paid, it is not acceptable for the advance.
The critical distinction here is that the work has been completed. The job is done and the customer is happy. It doesn’t matter if the relationship with the customer is really close and the customer has been talked into letting you bill today for the work that will be finished up next week. That won’t fly.
The line in the sand is whether the work has been accepted to the point where the evidence shows everyone is on the same page as finished. Ultimately a factor needs to be in possession of an invoice that they can independently collect on if need be, without the assistance of you – our client, if it comes to that. The invoice is an obligation to pay, and the customer has agreed to pay the factor directly.