Dilution affects more than collections. It directly influences advance rates, usable cash, and total factoring cost. This article explains how higher dilution can quietly force businesses to factor more invoices and pay higher fees, even when the factoring rate stays the same.
Two factoring offers can show similar rates and still cost very different amounts. The difference often comes down to what the rate is applied to. This article explains how invoice-based and advance-based pricing affect real factoring costs and why focusing on the rate alone can be misleading.
Advance rates play a much bigger role in factoring cost than most businesses realize. Even when factoring rates are the same, lower advances can force companies to factor more invoices, increasing effective cost and total annual fees. This article explains how advance rates shape real factoring costs and why focusing only on the quoted rate often leads to misleading comparisons.
Factoring costs are not defined by the rate alone. Fees, advance percentages, risk, and deal structure all affect how much usable cash a business actually receives. This article explains how those elements interact and why two factoring offers with similar rates can produce very different real costs.
Selective factoring gives seasonal businesses control over how many invoices they factor and when. By matching financing to real cash needs, businesses can avoid paying unnecessary factoring fees during stronger sales periods.
Non-recourse factoring can reduce certain credit risks, but it comes at a premium and does not cover every situation. This article explains what non-recourse really means, what events are covered, and how to decide whether the added cost makes sense for your business.
Factoring rates are not fixed. They are shaped by risk, predictability, and how receivables are structured. Full ledger factoring often reduces overall cost by spreading risk across all invoices, improving advance rates, and increasing cash flexibility, sometimes at a similar total cost to selective factoring.
You run a wholesale business that keeps your customers stocked and running. You’re the one buying in bulk, managing inventory, handling freight, and getting orders out the door fast, usually long before your customers ever pay their invoices. You carry the costs up front, but the money often takes weeks or even months to come back.
Slow hotel payments can make payroll a challenge. Factoring gives hospitality and hotel staffing agencies quick access to cash for completed shifts, helping them stay fully staffed and ready for every event or busy season.
Waste and hauling crews show up every day, even when customer payments lag behind. Municipalities, contractors, and commercial sites often pay slowly, leaving your company to cover fuel, landfill fees, maintenance, and driver payroll long before checks arrive. Factoring fills the cash-flow gap and keeps operations running.
Whether you’re handling land surveys, construction staking, ALTA surveys, topo mapping, boundary work, GPS/GNSS data collection, drone mapping, or even hydrographic and marine surveying, your work happens early in the project, long before the payment arrives.
Retailers, manufacturers, hospitals, foodservice companies, and industrial buyers commonly take 30, 60, or even over 90 days to pay invoices. Meanwhile, your cash is tied up in inventory, transportation, warehousing, and staffing long before your customers release payment.
Government work can be steady, profitable, and full of long-term opportunities, but payment cycles don’t always cooperate. Whether you’re providing construction services, logistics support, disaster response, staffing, IT, security, or facility maintenance, you often complete the work long before the payment arrives.
Most construction firms, industrial contractors, and project managers take 30, 60, or even 90+ days to process invoices, long after your machines have been delivered, assembled, fueled, and serviced.
In the meantime, you still have to cover insurance, maintenance, operator wages, repairs, transportation, and loan payments on expensive fleets.
Energy companies, EPC firms, and midstream operators often take 45, 60, or even 90 days or more to process invoices. Meanwhile, your day-to-day operational expenses continue to pile up, including payroll, fuel, equipment rentals, materials, and safety expenses, which don’t wait for anyone.
The reality is that most tower contractors wait 30, 60, or even 90 days to get paid by large telecom, utility, and construction clients. Meanwhile, payroll, insurance, equipment leases, and fuel costs come due every week.
When hurricanes, floods, wildfires, or severe storms hit, you and your crews mobilize fast, restoring power, removing debris, pumping water, rebuilding infrastructure, and bringing communities back to life.
But behind that critical mission lies a familiar problem: cash flow.
Whether you’re grading land, clearing trees, or hauling fill dirt, you take on huge expenses before a general contractor or developer even cuts their first check.
Fuel, heavy equipment, payroll, and subcontractor costs all come due long before your invoices are approved. It’s not unusual for payments to stretch 60, 90, or even 120 days, leaving your crew ready to work but your cash flow on pause.
You keep everything working, the lights, the air, the systems that no one notices until they fail. Whether you manage HVAC units, electrical work, or ongoing maintenance contracts, your business keeps other businesses open and comfortable.
But getting paid on time? That’s another story.
Invoice factoring gives pest control companies a way to bridge that gap, turning unpaid invoices into fast, predictable cash. With steady cash flow, your trucks keep running, your techs stay paid, and your business keeps growing.
