General Invoice Factoring

What is invoice factoring?

Invoice factoring is a financing solution where businesses sell outstanding invoices to a factoring company in exchange for immediate working capital. Instead of waiting 30, 60, or even 90 days for customers to pay, businesses can access most of the invoice value within 24 hours.

Factoring is commonly used by industries with large payroll obligations or long payment cycles, including staffing agencies, healthcare companies, trucking firms, and government contractors.

Learn more:
→ What Is Invoice Factoring and How Does It Work

How is factoring different from a loan?

Invoice factoring is not a loan. Instead of borrowing money, businesses sell accounts receivable to receive immediate cash.

Because the funding is based primarily on the creditworthiness of your customers rather than your company’s balance sheet, many businesses qualify even if they cannot obtain traditional bank financing.

Learn more:
→ Invoice Factoring vs Business Loans

How quickly can businesses get funded?

Most companies receive funding within 24 hours after invoice verification once a factoring relationship is established.

Initial account setup typically takes a few days while the factoring company reviews your customers, verifies invoices, and establishes credit limits.

Learn more:
→ How Fast Can You Get Funded with Invoice Factoring

Healthcare Staffing Factoring

What is healthcare staffing factoring?

Healthcare staffing factoring helps medical staffing agencies access cash tied up in invoices from hospitals, clinics, and healthcare systems.

Because healthcare staffing firms must pay nurses, therapists, and medical professionals weekly or bi-weekly, waiting 30–60 days for facility payments can create serious cash flow pressure. Factoring converts those invoices into immediate working capital.

Learn more:
→ Healthcare Staffing Factoring Guide

Can factoring help cover nurse payroll?

Yes. Many healthcare staffing agencies use factoring specifically to cover payroll while waiting for hospitals or healthcare facilities to pay invoices.

Factoring allows agencies to scale their workforce without taking on traditional debt or delaying payroll.

Learn more:
→ Payroll Funding for Nurse Staffing Agencies

Do hospitals accept factoring?

Yes. Healthcare facilities are familiar with factoring and payroll funding structures. When a staffing agency uses factoring, the facility simply sends invoice payments to the factoring company through a Notice of Assignment (NOA).

This process does not change the terms of the contract between the staffing agency and the healthcare facility.

Learn more:
→ Notice of Assignment Explained

Can startups qualify?

Yes. Many startup staffing agencies and home healthcare companies can qualify for invoice factoring, even if they have limited operating history. Unlike traditional bank loans, factoring companies typically focus more on the creditworthiness of your customers than the financial history of your business.

If your agency is working with reputable healthcare facilities, hospitals, or organizations that have strong payment histories, those invoices may qualify for funding. This makes factoring a common solution for newer staffing firms that are growing quickly but do not yet meet the lending requirements of banks.

Learn more:
→ Three Things Every Healthcare Startup Needs to Know

Do I have to factor every invoice?

Not necessarily. Factoring agreements can vary depending on the provider and the structure of the funding program. Some arrangements require businesses to factor most or all of their invoices, while others allow companies to choose which invoices they want to factor.

For many staffing agencies and healthcare service providers, factoring provides flexible access to working capital that can be used when cash flow gaps occur. The best structure often depends on your invoice volume, growth plans, and funding needs.

Learn more:
→ Spot Factoring vs Whole Ledger Factoring: Choosing the Right Structure

Home Healthcare Factoring

Can home healthcare agencies use invoice factoring?

Yes. Home healthcare agencies frequently use factoring to manage cash flow gaps between caregiver payroll and insurance or facility reimbursements.

Because many home healthcare clients pay on extended billing cycles, factoring can provide faster access to working capital.

Learn more:
→ Home Healthcare Factoring Solutions

Can factoring help agencies grow faster?

Yes. Factoring provides consistent working capital that allows agencies to:

• hire additional caregivers
• accept new patient contracts
• expand service areas
• maintain reliable payroll cycles

For growing agencies, reliable funding can remove one of the biggest barriers to scaling operations.

Learn more:
→ How Factoring Helps Healthcare Agencies Grow

Can factoring support growth into new territories?

Yes. Expanding into new geographic markets often requires additional working capital to recruit staff, onboard new clients, and support payroll while waiting for invoices to be paid.

Invoice factoring can provide reliable cash flow that helps agencies grow without being limited by slow payment cycles. With faster access to working capital, staffing and home healthcare companies can take on new contracts, hire additional professionals, and expand service coverage with greater financial stability.

Learn more:
→ How Factoring Funds Home Healthcare Expansion

What if payments are slow?

Slow-paying customers are one of the main reasons businesses use invoice factoring. When customers take 30, 60, or even 90 days to pay invoices, it can create cash flow challenges—especially for companies with large payroll obligations.

Factoring helps address this issue by converting approved invoices into immediate working capital. Instead of waiting for payment, businesses receive a cash advance shortly after submitting invoices, allowing them to continue operating and meeting financial obligations while customers complete their payment cycles.

Learn more:
→ The Hidden Costs of Slow Payments

Payroll Funding

What is payroll funding?

Payroll funding is a specialized form of invoice factoring designed for staffing companies that must pay employees before clients pay invoices.

Funding providers advance a percentage of approved invoices so staffing firms can cover payroll, taxes, and operational costs.

Learn more:
→ Payroll Funding for Staffing Agencies

What industries use payroll funding most often?

Payroll funding is most common in industries where labor costs are the largest expense.

Examples include:

• healthcare staffing
• nurse staffing agencies
• temporary staffing firms
• home healthcare providers
• contract staffing companies

Learn more:
→ Staffing Agency Payroll Funding Guide

Still have questions?

If you’re exploring payroll funding or invoice factoring for your healthcare staffing or home healthcare agency, our team can help you understand your options and compare funding solutions.

Get In touch

Application & Approval

What is required to apply for factoring?

Most factoring applications require basic business and receivables information, such as:

• accounts receivable aging report
• customer list
• invoice samples
• company formation documents

Because factoring approval is primarily based on customer credit quality, many companies qualify even if they cannot secure traditional financing. Start here:
→ Invoice Factoring Process

Factoring Costs

How much does invoice factoring cost?

Factoring fees vary depending on several factors:

• invoice volume
• customer credit quality
• payment terms
• industry risk

Typical factoring fees range from 1% to 5% of the invoice value, though pricing structures can vary.

Learn more:
→ The True Cost of Invoice Factoring