Viva Capital Makes It EASY to Work with Factoring Experts
At Viva Capital, we know experience is invaluable in any business, including invoice factoring solutions. Through our invoice factoring services, we’ve funded a large variety of companies over the past 20 years. We know the difficulties that come with starting and growing a business. Our small business invoice factoring solutions can act as a cash advance, giving business owners the cash flow they need to operate without the hurdles of a traditional loan.
Experience
We know how to grow a business because we’ve done it ourselves. With over 100 years of combined finance and accounting experience, Viva Capital has funded over $2 billion in the transportation industry alone. Our growth speaks for itself. When you need short-term financing, trust your success and the responsibility of factoring your invoices to Viva Capital.
In addition, we’ve been doing asset-based lending for two decades. You don’t want to risk your short-term financing and your company’s growth to inexperienced hands.
Independently Owned
Being an independent factoring company is a difference-maker. We’ve built a company culture where all our colleagues have a sense of ownership. When you talk to any one of our colleagues, you are talking to a decision-maker. We care about our clients, and that’s how we’ve built our sterling reputation over the years.
Get Paid Faster
Cash flow issues and slow turnaround on payments can limit the growth of your business. Unpaid invoices and outstanding invoices can affect the cash flow of your business. Whether you need the invoiced amount of money for transactions regarding supplies, fuel advances, or working capital, sometimes the best solution is to factor your invoices and leave the collecting process to us.
Factoring your invoices frees up valuable time that you can use to focus on growing your business. We’re here to get you your accounts receivables.
Simplify Cash Flow with Flexible Payment Terms
For small businesses, payment terms like net 30 payment terms often create cash flow challenges, as waiting weeks for payments can delay operations and limit growth opportunities. For small businesses struggling with credit constraints, factoring provides a reliable solution to improve cash flow and maintain stability. With Viva Capital’s invoice factoring solutions, you can turn unpaid invoices with net 30 or similar terms into immediate working capital. This enables you to cover expenses, invest in growth, and maintain financial stability while we handle the collections process on your behalf.
For industries like staffing, where payroll funding and working capital are crucial for smooth operations, factoring offers a tailored solution to bridge cash flow gaps. Learn more about our specialized factoring for staffing companies and how it can help your business thrive while meeting payroll demands efficiently.
Communication is Key
It’s clear to us how important communication is. That’s why our account managers are eager to listen to your company’s needs. Our bilingual staff is committed to providing clients with 1st class customer service when it comes to anything regarding our invoice factoring solutions.
Factoring Financing
There are plenty of reasons why selling invoices
over to a factor makes sense.
Factoring Basics
What is factoring? In simplified terms, we buy the invoice from you to
give you working capital in advance of payment from your customer.
Invoice factoring solutions can help with short-term financing.
How Factoring Services Boost Cash Flow for Small Businesses
Small business owners often face cash flow challenges due to delayed invoice payments. Factoring services offer an effective solution by turning unpaid invoices into immediate cash. Unlike traditional loans, factoring allows a business to sell its accounts receivable to a provider, ensuring fast access to funds without incurring debt.
Factoring not only addresses cash flow needs but also minimizes financial risks. For instance, non-recourse factoring transfers credit risk to the provider, protecting businesses from losses if a customer fails to pay. On the other hand, recourse factoring offers lower fees but requires businesses to take responsibility for unpaid invoices. Both options cater to unique business needs, ensuring flexibility.
The factoring process is simple: a company sells its invoices to a factoring provider, who purchases the receivables at a discounted rate, typically deducting a small factoring fee. The business receives immediate cash, while the provider manages collections. This allows businesses to focus on operations and growth without worrying about cash flow interruptions.
Factoring helps stabilize financial operations and supports business growth, making it a valuable tool for small businesses in industries like trucking and oilfield services, where timely payments are critical.
Learn more
Frequently Asked Questions About Invoice Factoring
What is invoice factoring and how does it work?
Invoice factoring is a financing solution that allows businesses to sell unpaid customer invoices to a factoring company in exchange for immediate cash. The factor typically advances 80–95% of the invoice value upfront. Once the customer pays, the factor releases the remaining balance minus a small fee. This helps businesses maintain steady cash flow without waiting 30–90 days for payment.
How Is Invoice Factoring Different From Invoice Financing?
The key difference is who collects the payment. With factoring, you sell your invoice to a factoring company, and they handle collections. With invoice financing, you borrow against the invoice but continue managing collections yourself. Factoring is often preferred when businesses want both faster access to funds and relief from collections work.
Can I factor only some of my invoices?
Yes. This is called selective or spot factoring. Businesses can choose which invoices or customers to factor, giving them flexibility to use factoring only when cash flow is tight or when certain clients take longer to pay.
What types of businesses use invoice factoring?
Factoring is widely used by B2B companies that provide goods or services on credit terms. Common industries include trucking and logistics, staffing, oilfield services, manufacturing, and wholesale distribution. Any business that waits on customer payments can benefit from factoring.
How fast can I get paid through factoring?
Once you’re set up with a factoring company, payment is typically made within 24 hours of invoice submission. Some providers, including Viva Capital, even offer same-day funding, making it much faster than bank loans or credit approvals.
How much can I get and what are typical factoring terms?
Most businesses receive an advance of 80–95% of the invoice value upfront. The remaining balance is held in reserve until the customer pays, minus a factoring fee. Terms vary by industry, client creditworthiness, and invoice volume. Agreements may be ongoing or flexible, depending on your provider.
What are the typical fees for invoice factoring?
Factoring fees usually range from 1% to 5% of the invoice value. Costs depend on the size and number of invoices, the credit strength of your customers, and how long it takes them to pay. Transparent factoring companies will disclose all rates and avoid hidden charges.
Can I qualify for factoring if I have bad credit or financial struggles?
Yes. Approval for factoring is based primarily on the creditworthiness of your customers—not your own credit score. That makes it a practical option for businesses with poor credit, limited financial history, or past challenges, as long as their customers pay reliably.
What happens if my customer doesn’t pay or disputes an invoice?
If a customer fails to pay, responsibility depends on your agreement type. With recourse factoring, you may need to buy back or replace the invoice. With non-recourse factoring, the factor assumes the credit risk if the customer becomes insolvent. Disputed invoices may delay payment until the issue is resolved.
Is invoice factoring flexible for seasonal or cyclical businesses?
Yes. Factoring scales with your receivables, making it a strong option for businesses with seasonal fluctuations. You can factor more invoices during busy periods to cover payroll and expenses, then reduce usage when cash flow stabilizes. There are no fixed repayment obligations like with loans.
Is invoice factoring safe for my business?
Yes. Invoice factoring is a safe and widely used financing method. When you work with a reputable factoring company, your funds are protected, and transactions are transparent. Since factoring is based on the strength of your customers’ credit, it reduces risk compared to taking on new debt. Always choose a factoring partner with clear terms, no hidden fees, and experience in your industry.
What should I look for in a factoring partner?
Key factors include:
- Transparent pricing with no hidden fees
- Experience in your industry
- Fast approvals and reliable funding
- Flexible agreements without long-term commitments
- Strong customer support
The right factoring company will act as a long-term partner, not just a lender.