Invoice Financing

Use your invoices to accelerate growth!

Loan Amounts

$25,000 - $5,000,000

Terms

Revolving Credit

Rates

.8% - 2.5%

Speed

as little as 24 hours

What is Invoice Financing?

Invoice Financing is a great way to accelerate cashflow by getting paid on your outstanding invoices today, rather than waiting 30, 60, or 90 days to be paid. Invoice Financing acts like a Line of Credit, when your invoices are paid, your balance goes down, when you create new invoices, you can draw more money. The purpose of Invoice Financing is to bridge the gap between your Accounts payable and accounts receivable, which not only helps with day to day expenses, but helps you take on additional customers and grow your business.

There are various different terms and fees that come with Invoice Financing, and all of this is determined by the strength and credit of the business, but most importantly, the strength and credit of its customers. As an example, if a food vendor sells their goods to a restaurant that recently opened, the quality of those invoices wouldn’t be considered strong. If that same food vendor sells to Walmart and they have been for 2 years, the quality of that invoice would be very strong. The first example would result in higher rates and less competitive terms where the second example would have Invoice Financing companies competing for the business!

How to apply for Invoice Financing?

The application for invoice processing is simple, but the larger the amount that’s needed, the more paperwork that a lender wants to see. The process can take anywhere from two to thirty days and is usually dependent on how prepared a business owner is when they apply and what type of existing debt there is.

Apply Online

SMB Compass's simple and secure online loan application can be completed in a matter of minutes. Quick & Easy!

Get Approval

After we process your application we will contact you and provide you with the best loan offer. 

Get Back To Business

Once your loan is approved in as little as 24 hours. You will have capital deposited directly to your business bank account.

What are the best industries for Invoice Financing?

In order to qualify for Invoice Financing a business must be in an industry that sells to other businesses, or a b2b industry. The reason for this is because b2b industries invoice their customers and sell on terms, while b2c industries collect payment at the point of sale (POS). The most common and best industries for Invoice Financing are; transportation and logistics, wholesale and distribution, temporary staffing, and manufacturing.

Manufacturing

Wholesale

Staffing

Why would a business use invoice financing?

The flexibility of Invoice Financing gives business owners the ability to use the money for a wide variety of purposes. Some of the ways a business can use the money is:

  1. Day to day operating expenses
  2. Purchasing new inventory and materials
  3. Bridging the cash flow gap between a/p and a/r
  4. Seasonality is resulting in tight cash flow
  5. Growth capital, the more you sell the more you can borrow!

What documents are required for invoice financing?

  1. SMB Compass Online Application
  2. Detailed A/R Aging Report
  3. Current Financials
  4. Sample invoice and contract with customers

What is a real example of a company that used invoice financing?

A real example of a company that used Invoice Financing was a solar distributor based out of Arizona. The solar industry relies on sales people that are paid commissions, local utilities companies that give tax credits, and buyers that receive financing from third parties. All of the stages in billing and the complications around it caused a big cash flow cap and extended payment for the business. At the time we started working with the solar supplier they had $4,000,000 in outstanding a/r that was aging near 45 days, but they needed to pay sub contractors, vendors, and payroll every 15 days. Within 21 days we were able to have $3,000,000 deposited into their account and within 6 months there was over $15,000,000 of invoices financed!

What Our Clients Are Saying

"We cannot express just how grateful we are that we found this company to work with. No matter what finance companies we reached out to for help we kept getting turned away and even at times, no call back. SMB Compass found us the best source of financing that would not just help in the short term, but gave us a solid plan to regain financial independence. We have been able to keep employees working and grow our business."
Tim C.

Massachusetts

"My family business has been around for over 25 years and we are grateful to have been introduced to the SMB Compass team. We’re now growing by 50% per year and without the help of SMB Compass, we wouldn’t have the capital to do so. We started off with a series of 5 year equipment loans and a 5 year working capital loan, and now the SMB Compass team has been able to secure a bank term loan and a $450,000 line of credit, with a bank that’s willing to grow with us!"
Greg P.

New Jersey

"I can’t begin to explain how helpful Matt Gillman and the SMB Compass team has been. I was able to put an operating line of credit in place along with a term facility that recapitalized my business. I constantly tell Matt and his team that they need to figure out a way to show people how different they are then others. I have recommended SMB Compass to family and friends and highly recommend them to any business owner looking for financing."
Fred S.

Indiana

Quick Approval for Your Small Business Loan

$160,000,000+ in financing provided to date. SMB Compass will provide your business with the best loan options available. Apply in minutes. Your results await. 

Friendly 5-10 Minute Introduction
Documentation and Underwriting
Approval and Funding

Frequently Asked Questions

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