Invoice Factoring through Lends Well

Apply in as little as 6 minutes and hear from a dedicated loan specialist within one hour.


Receive 85–90% of the invoice amount upfront 


Rates as low as 0.25% per week 

Lines up to $5M

Applying won’t affect your credit score!*

Is Invoice Factoring right for my business?

Invoice factoring lets you sell your outstanding invoices to unlock funds that you need to run and grow your business. Receive up to a 90% advance on unpaid client invoices, and then get the rest of the money - minus the factor’s fees - when your client pays its invoice. Unlike some factors that lock you into restrictive contracts, Lends Well lending partner offers “spot factoring,” meaning you can choose when and which invoices to factor.

Apply in as few as 6 minutes and your dedicated Account Manager will work with you to see if invoice factoring is a good fit for your business.


Since 2011, Lends Well has helped businesses in over 700 industries access the capital they need.

Over $10 billion lent to 50,000 small businesses globally.

Pros and Cons of Invoice Factoring


  • An easy and fast way to get financing for your business

  • Qualify for financing largely based on your cash flow and clients’ credit (or ability to pay back invoices)

  • You can increase cash flow right away and don’t have to wait for customers to pay you back

  • Money on hand to can allow you to take advantage of opportunities


  • Fees based on time to invoice repayment

  • Some companies lock you in with exclusivity clauses or require you to factor every invoice

  • Can be expensive compared to other forms of financing

You deserve better business finance

Lends Well was created with a big idea: to revolutionize the outdated lending system and build a better deal for small businesses. With one 6 minute application we can help you find the right financing options for your needs, from lines of credit to term loans, cash advance and even Small Business Administration (SBA) loans.

Let's get started.


Start your online application

Apply online in 6 minutes with one simple application.


Review your options

Your dedicated Account Manager will contact you as soon as possible to review your needs and help you find the best funding option for your business.


Get funded

Get a decision in as little as 24 hours and funding as soon as the next day accepting an offer.

Invoice Factoring Frequently Asked Questions

How does invoice factoring work?

Invoice factoring, or accounts receivable factoring, works by letting you get paid right away for outstanding invoices. The factoring company purchases your invoice, giving you a percentage (often between 70% to 90%) of the invoice’s amount up front. Your client then pays the factoring company, and the factor forwards the rest of the payment to you minus its fee. Some factors let you set up the arrangement in a way that your clients don’t realize you’re using a factor.

What can I use invoice factoring for?

Invoice factoring is generally best for short-term expenses and upfront investments. An invoice factoring loan can help smooth your cash flow by giving you money for ongoing expenses while you wait for clients to pay their invoices. Invoice factoring can also help growing companies that need cash to buy materials or hire new employees.

What kind of businesses are best suited for invoice factoring?

Invoice factoring can be a good option for any business-to-business company that has uneven cash flow. This might be due to discrepancies between when it has to pay expenses and how long it takes for clients to pay invoices. This can include a wide range of businesses. For example, marketing firms, staffing companies, and wholesalers may need to purchase materials or make payroll while they wait to get paid.

How much does factoring cost?

Invoice factoring cost, fees, and expenses can vary from one company to another. Lends Well lending partner charges a weekly factor fee that’s taken out of the reserve (the amount of the invoice that wasn’t advanced), and then you’re sent the remainder. Other factors may also charge an initial one-time fee to get started, monthly maintenance fees, invoice processing or advance fees, early termination fees, or even monthly minimum fees.

How does repayment work?

Unlike a loan, invoice factoring isn’t a debt. The factoring company purchases your invoice and sends you money, and then gets repaid by your clients. You may have to notify your customers that you’re working with a factor and request that they send payments to the factor. Or, you may have to open a new bank lockbox and ask clients to send future payments there. The bank account may be in your name, and your clients won’t know you’re using a factoring service. However, the factor can still control the funds.

What happens if my client doesn’t pay?

Many factors offer full-recourse factoring, which means you’ll be responsible for paying the factoring company directly if your client doesn’t pay an invoice. If you have a non-recourse agreement, you won’t be responsible for unpaid invoices. Then, the factor may pursue payment from your client. If you know that your client may be late with a payment, it’s best to reach out to your factor right away to tell them about the delay.

What are the pros of invoice factoring?

Invoice factoring for small business or larger ones can have a multitude of benefits. Invoice factoring loans can quickly give you access to the money you’re owed, helping you run your business and invest in new opportunities. It can be an essential tool for businesses that work with large clients that pay on net-60 or net-90 terms, and for fast-growing companies that need cash for their expansion. And, because factoring depends on your clients’ ability to pay outstanding invoices, it can be much easier and quicker to set up a factoring service than to qualify for a loan or line of credit.

What are the cons of invoice factoring?

Invoice factoring can have disadvantages as well. For starters, factoring may not be an option for business-to-consumer (B2C) companies, as they don’t have outstanding invoices. Factoring can also be more expensive than other forms of financing. Your funding amount is limited by your outstanding invoice amount, and you may be responsible for paying the factor if your client doesn’t pay its invoice. While Lends Well lending partners don’t do this, some factoring companies also require you to factor every invoice or charge fees if you don’t use the factoring service.

1 If your business is organized as a general partnership, your credit score may be impacted.


2 For the most credit-worthy applicants, LIBOR rate will be applied.


3 Subject to credit approval. Interest rates vary and are determined by the applicant’s credit profile.


4 Approval and funding times may vary by lending partners.