Invoice Financing

Explore Invoice Financing for Your Business

Unpaid customer invoices can leave a gap between completing work and receiving cash. Start by comparing the amount you need, when customers are expected to pay and the full cost of accessing funds sooner.

G-Force Funding is a lending marketplace serving businesses in the United States and Canada, not a direct lender or invoice purchaser. We help you explore options through participating providers. Product availability, invoice eligibility, approval, costs and terms depend on your business, location and provider.

Discuss Your Invoice Financing Needs

Invoice Financing vs. Factoring: What Is the Difference?

Invoice financing generally means borrowing against unpaid invoices. Factoring generally involves selling invoices. Providers sometimes use these labels differently, so ask what the agreement actually requires.

Neither structure is automatically cheaper or suitable for every business. Compare net cash received, total charges, customer communication and obligations if payment is late, disputed or never collected. For background, see BDC’s explanation of factoring. This reference does not imply a partnership or product availability.

Example: Understanding an Invoice Advance and Reserve

Suppose a business sells a $20,000 invoice under a hypothetical factoring agreement with an 80% advance and a $600 fee if the customer pays within the agreed example period.

This is an invented illustration, not a G-Force Funding or provider offer, standard advance percentage or quoted fee. It assumes full customer payment, no other charges and no adjustment to the reserve. The reserve is not an extra fee in this example; part of it is released after collection.

The $600 fee equals 3% of the invoice face value. That is not an APR and should not be compared directly with an annual loan interest rate. Ask how charges change if the customer pays late and whether minimum, transfer, service or termination charges also apply.

If you borrow against an invoice instead, request a separate repayment illustration showing interest, fees, when repayment is due and how customer receipts are applied.

Discuss Your Receivables and Funding Need

Prepare for an Invoice Financing Conversation

• Invoice records: Prepare an accounts receivable aging report, invoice amounts, due dates and relevant customer details.
• Completed work: Ask which purchase orders, contracts, delivery records or acceptance documents the provider needs.
• Customer concentration: Explain whether a large share of unpaid invoices comes from one customer.
• Disputes and delays: Identify overdue invoices, credits, offsets or customer disputes rather than assuming every invoice qualifies.
• Existing financing: Identify current loans and security interests that may affect receivables.
• Location and currency: State where your business and customers operate and which currency the invoices use.

Use our business financing document checklist. Confirm the provider’s required records and secure submission channel before sending customer or financial information.

Questions to Ask Before Accepting an Offer

1. Which invoices and customers are eligible, and what can change their eligibility?
2. What cash will we receive after all upfront deductions?
3. Who contacts customers, and where must customers send payment?
4. What fees apply if an invoice takes longer to pay?
5. What happens if an invoice is disputed or unpaid?
6. Are there minimum volumes, exclusivity requirements, guarantees or termination charges?
7. How are reserves reconciled and released?

Compare Other Ways to Address a Cash-Flow Gap

A business line of credit may be worth comparing for recurring operating needs. A short-term business loan has a different repayment structure. Compare the actual offers, timing and cash-flow demands rather than assuming invoice-based financing is the best fit.

Invoice Financing Questions

Does having invoices guarantee approval?

No. Providers assess invoice eligibility, the customers involved, the business and their own requirements. An invoice balance alone does not establish eligibility.

Is factoring the same as a loan?

Factoring generally involves a sale of receivables, while invoice financing generally involves borrowing against them. Read the actual agreement, including recourse and guarantees, rather than relying only on the product name.

Can U.S. and Canadian businesses explore options?

G-Force Funding’s marketplace serves both countries. Ask which providers and structures can be considered for your location, customer locations and invoice currency. Cross-border availability is not assumed.

Discuss Your Next Funding Step

Have your business location, requested amount, invoice balance and expected customer payment dates ready. We can discuss the marketplace process and the information participating providers may request. Availability, approval, pricing and timing are provider-dependent.

Discuss Your Invoice Financing Needs