Business Funding

Accounts Receivable Factoring

Accounts Receivable Factoring from Angel Funding Group — flexible financing designed around your business goals. Talk to an advisor to see what fits.

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At a Glance

Funding Amount Up to $5,000,000/mo

Term Ongoing facility

Overview

The Angel Funding Advantage

A/R Financing focuses on your customers' ability to pay — not the strength of your balance sheet or the profitability of your company.

Credit based on your customers
No debt added to balance sheet
Outsourced collections available

The Process

How It Works

A streamlined, transparent process designed to get capital into your hands.

Provide Service/Goods

You deliver the product or service to your customer and generate an invoice.

Sell the Invoice

You sell the invoice to the factoring company.

Customer Pays

Your customer pays the invoice directly to the factoring company on their normal Net-30/60 terms.

Rebate

Our advisors handle this step for you and keep you informed at every stage.

Who Qualifies?

B2B or B2G businesses (you must invoice other businesses or government entities)
Valid invoices to a business for services rendered or products provided (no existing bank liens on your receivables)
Customers with strong commercial credit profiles
Industries served include manufacturing, distribution, transportation, staffing, oil & gas, service providers, technology, and more
No minimum credit score required for the business owner

Why Choose This Option

Get assistance managing and collecting receivables.
Avoid tightening credit availability based on economic cycles or market fluctuations.
Use as a performance foundation for growth into other products, like asset-based or traditional bank lines of credit.
Zero debt added to your balance sheet — it is an asset sale, not a loan.

Common Scenarios

How businesses use Accounts Receivable Factoring

Manufacturing

Purchasing raw materials for the next production run without waiting for previous buyers to settle their accounts.

Government Contractors

Surviving the notoriously slow payment cycles of local or federal government agencies.

FAQ

Frequently Asked Questions

Get the facts on Accounts Receivable Factoring.

Is factoring a loan?

No, factoring is the sale of an asset (your invoices) at a discount. It does not create debt on your balance sheet.

What is the difference between Recourse and Non-Recourse factoring?

In Recourse factoring, you must buy back the invoice if your customer fails to pay. In Non-Recourse factoring, the factoring company assumes the credit risk—if the customer goes bankrupt, you do not have to pay the money back.

Will my customers find out?

Yes, your customers will receive a Notice of Assignment directing them to pay the factoring company. This is a highly standard practice in B2B industries like trucking and manufacturing, and customers are very used to it.

Do I have to factor all my invoices?

Not necessarily. While some contracts require "whole ledger" factoring, we offer "spot factoring" facilities where you choose exactly which clients and invoices to factor.

What if my invoice is already overdue?

Factoring is designed for fresh invoices.

Can I factor B2C (consumer) invoices?

No. Factoring is strictly for B2B (business-to-business) or B2G (business-to-government) receivables.