Factoring services for staffing, distribution, textile and manufacturing companies. Your invoice factor isn’t the only thing that affects the cost of invoice factoring. Factoring rates are nowhere near that level. Start by requesting pricing for both types of financing. You are collecting money for services already rendered and the factor makes its money on the factoring fee, so there is no interest involved. Business loans are offered by Fora Financial Business Loans LLC or, in California, by Fora Financial West LLC, a licensed California Finance Lender, License No. Find out how to take your business to the next level, Invoice Factoring vs. However, it comes at a price in that businesses have to pay more for fast, unsecured capital. This means the interest rates and fees may be high. Small Business Financing for B2B vs. B2C Situations. As you can see, with so many unknown variables, defining a low-cost option is difficult. For example, the factor rate, which determines how much your invoices are discounted by the factoring company, depends on: Factor type refers to whether your invoice factor is recourse or non-recourse. Keep in mind that a good factoring company will work with you based on your customer’s payment history and make sure your terms are favorable to you. So, if you received an advance of $10,000 with a factor rate of 1.2, you’d have to pay back $12,000 in total. $20,000.00 of invoices for delivered goods or services submitted to the invoice factoring company; Agreed factoring rate 2% (rates can be as low as .5%) The cost for the advance cash on invoices is $400 as well as a fee to factor; Merchant Cash Advance . MCAs may also be structured so that they don’t depend on debit and credit sales. The factoring companies usually give 70-90% of the invoice value in advance. As mentioned earlier, a non-recourse factor limits your responsibility if an invoice goes unpaid. This is a method of working capital funding for mostly smaller retailers/merchants that are in the B2C (business to consumer) market. Our topic today is to outline two completely different funding solutions for small business: merchant cash advances and A/R financing (also known as factoring). This is especially true if the invoice factor you’re using is non-recourse. In fact, factoring is essential like using a credit card. A merchant cash advance is an advance based on future credit and debit card transactions, so lack of collateral or a poor credit score rarely affects approval. Predicted future sales to be funded $20,000.00; Agreed cash advance rate 20% If your invoices are perpetually late, it may be better to find better clients – or impose steeper fines and penalties for late payments. In other words, depending on your situation, invoice factoring may be more or less expensive than an MCA. Factoring for oilfield services companies. David Rubin, CEO of Capital Stack LLC, says a little over a year ago there were 50 MCA funders with $1.5 billion in funding and just a year later over 120 funders with 3 billion in volume. Merchant cash advances (MCAs) are typically limited to 70% – 120% of your average monthly revenue. MCA companies don’t evaluate you the same way a bank does. The interest rates and fees on merchant cash advances and invoice factoring are typically higher than that of a traditional bank loan. Invoicing and Collections for Trucking Companies, How to Get a Working Capital Loan with Bad Credit, Comparing Cash Flow Options for Your Trucking Company, What is a UCC Filing? “The Merchant Cash Advance Company Offered a Higher Funding Amount than the Invoice Factoring Company” In most cases, this may be the case since the merchant cash advance looks at “All” the income that passes through your business’ bank account (cash sales & sales on open terms) as supposed to only the eligible accounts receivable. Speed of funding. This means that the terms you see and the fees you pay will vary considerably. Then, lay out the costs, potential benefits, and risks of both options. Business Cash Advance; Merchant Cash Advance. Recourse VS Non-Recourse Factoring. However, with a non-recourse factor, it’s the other way around. Factoring receivables tend to charge much less than merchant cash advances, usually 22-27 percent less. That said, with a litany of financing options at your disposal, Fora Financial is a working capital provider to small business owners nationwide. The Ultimate Guide to Obtaining Small Business Grants, 5 Check Cashing Options Without A Business Bank Account, 8 Bank Loan Requirements You Should Know About, The 10 Business Types With The Lowest Profit Margin. There is … Merchant cash advance (MCA) lenders have stepped in to fill the demand and are entering the marketplace at a high rate. You sell an unpaid invoice with a value of $10,000 to a factor. A merchant cash advance is a financial service where an MCA provider offers a cash advance based on your future credit card sales. If a factoring company determines that your customers aren’t creditworthy, they may not approve your financing. You pay back the advance plus interest in installments from an agreed-upon percentage of your daily credit card sales. Recently, Merchant Cash Advance has become more prevalent. For example, if your MCA loan amount is $50,000 and your factor rate is 1.2, your total payback amount will be $60,000 ($50,000 x 1.2). However, here are several reasons why invoice factoring could beat out a MCA as the better cash solution. Merchant Cash Advance Overview . 3. Once the advance is extended, a fixed percentage of your business’s credit card and debit card sales are remitted to the MCA company. Below we will compare an interest rate on a standard loan to a factor rate with a merchant cash advance. Once the factor purchases the invoice, your risk of customer nonpayment is eliminated. As you’ve seen though, the structure of these financing options couldn’t be more different. Factoring companies won’t typically turn you down due to poor credit, lack of collateral, or operating history. Once the amount you owe, plus fees, is met, the remittances stop. Merchant Cash Advance. Factoring is commonly used in the trucking and oilfield industries because companies must purchase materials, pay labor and cover operating costs in advance of collecting payments from their customers. Revenue Based Financing is offered by Fora Financial Advance LLC. Invoice Factoring. Semi Truck Financing; Business Loans and Alternatives for Working Capital. MCA fees are mainly based on a factor rate, which is based on the merchant cash advance company’s assessment of your business’s risk. So, they’re not going to approve your application if they perceive a high risk of an unpaid invoice. Since the factor purchases these invoices, they collect the payment from your customer. Sometimes, business owners must seek out sources for funding that will allow the business to continue to operate even during difficult times. With that information in hand, you’ll have your answer. Since they’re not loans, MCAs aren’t heavily regulated. What is Invoice Factoring? To help you do that, this post will define both terms as well as the associated pros, cons, risks, and costs of each. Recently, I have had several clients ask me what the difference is between factoring business receivables and a merchant cash advance (MCA). Newsroom Our Impact Careers Contact Us. However, the way these options are structured differs significantly, so it’s important to understand how invoice factoring and merchant cash advances compare. In either case, you’ll be on the hook for your customer’s inability to pay. Though merchant cash advances are considered equal to invoice factoring, they involve more risk than invoice factoring. The company advances you 85% (or $8,500) of the cost upfront and holds 15% (or $1,500) in reserve. Your customers pay in a particular pattern. Once the invoices are sold, the factoring company owns them, so they’ll get paid when your customer pays their invoice. Jan 3, 2020 Filed under: Business Loans, Invoice Factoring, Merchant Cash Advance, Peer-to-Peer Loans 50 SmartBiz VS National Business Capital SmartBiz and National Business Capital both promise to save time and headaches by allowing you to effectively apply to multiple lenders with a single application. A merchant cash advance provider will charge you based on your “projected” sales. When you need cash to jump on an opportunity quickly, MCA’s are a great option. Generally, you’ll get the lump sum within a couple of days and the discount is based on a factor rate. So, whether you have a great credit score or not, you may qualify for an MCA. Depending on how MCA providers evaluate your risk profile, you may have to pay higher rates. Background: Merchant cash advance companies provide working funds to small to mid-size retailers and businesses (hereinafter simply referred to as “merchants”) through a specialized form of factoring. Prepared December 2016 . Factoring rates are more akin to credit cards rates. In this way, invoice factoring provides the best of both worlds in your accounts receivables. Mobile and web app for factoring, fuel discounts, credit reports and more. While a Merchant Cash Advance, (MCA) can help a business owner secure immediate financing, there are several pitfalls they should be aware of before opting for this type of financing. It’s easier for a small business that may not have a great credit history to qualify for an MCA. Merchant Cash Advance Financing; What Can Merchant Cash Advances Be Used For? In other words, a merchant cash advance is actually a sale of your future debit and credit card sales. On average, we see one factoring client per day shut their doors due to the inability to service ACH bank withdrawals associated with Merchant Cash Advance and other Cash Invoice Advance Loans. Invoice factoring is lower risk and has a lower overall cost, since merchant cash advance services typically charge high interest rates and you incur massive … This makes it possible for businesses that don’t make a high volume of debit and credit sales to access MCAs. This option is designed to solve urgent, short-term cash flow issues. On a recourse factor, you’re liable if your customer doesn’t pay their invoice. Which option costs less depends on the value and risk associated with your future sales and invoices. First, let’s take a look at merchant cash advances. Of the most popular alternatives to traditional loans, accounts receivable factoring and merchant cash advances top the list. With a merchant cash advance, a financing company provides you with an advance of capital in exchange for a percentage of your daily credit card and debit card sales, plus a fee. Since MCAs and invoice factoring are structured so differently, it’s difficult to generalize either one as having the lower cost. Knowing the difference between invoice factoring and merchant cash advance is crucial. Handling growth. Some business owners may get confused and be unaware of what they’re signing up for with an MCA. You can choose which invoices to sell to the factor and you’ll receive an advance on each of them. Factoring is based on work that has already been performed, and services that have already been delivered. Technically, merchant cash advances are a type of credit card factoring, as they involve obtaining money in advance for future credit card sales. ©2020 RTS Financial Service, Inc. and RTS Carrier Services, Inc. All rights reserved. Factoring is a financial service where a factoring company purchases your open invoices. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at. Some factoring companies advance up to 97% of the total amount of the invoice. That means, when sales slow down, so do your remittances and vice versa. If your customer does not pay, the factor manages the collections, not you. Credibly’s merchant cash advances (MCAs) offer up to $400,000 in funding, and just as with a small business short-term loan, a factor rate is used to determine the cost of financing. The cost of both also depends on when and if you — or your customer —  pay back. All they care about is the value of the outstanding invoices you want to factor. Merchant cash advances, like invoice factoring, provides a lump sum of cash within a few days or less. Updated: Jul 18, 2019. Factoring is also used by new businesses that need capital to support their growth but lack the credit history to obtain a traditional loan. In order to give business owners a better idea of how the two stack up, we put together a side-by-side comparison according to the features entrepreneurs look for the most in financing solutions. Therefore, if your customers tend to miss payments or pay late, that could be a problem. Business Line of Credit; Equipment Financing. We're here to break down invoice factoring versus Merchant Cash Advance and let you know what the differences are if your … A main point of difference is that Merchant Cash Advance is based on projections of future sales -sales that haven’t happened yet. SBA Loans Business Term Loans Merchant Cash Advance Business Line of Credit Invoice Factoring Working Capital Loan. RTS Financial and RTS Carrier Services Shamrock Trading Corporation Brands. The card company (factor) pays you. Yet even if the invoice factor is recourse, the chances of an unpaid invoice when you’re working with a factoring company are small. Invoice factoring is only useful if you have consistent sales, but inconsistent cash flow. Also, It is significant to note that factoring services work against your current invoices rather than an estimated, projected dollar amount. However, this can cause cash flow issues. Ultimately, your best bet is to ask for pricing and terms for both and calculate each option individually. MCA fees are mainly based on a factor rate, which is based on the merchant cash advance company’s assessment of your business’s risk. Instead, you sell unpaid invoices at a discounted price to a third party called a factoring company. The reason this affects your factor rate is that a non-recourse factor means there’s more downside risk for the factoring company. The factor then deducts its fee and returns the remaining balance. With a merchant cash advance, the business that holds the merchant account can choose to “sell” a portion of its future credit card revenue in exchange for a lump sum up front. These companies run credit reports on your customers before they approve you. With a recourse factor, you’re responsible if a customer fails to pay. For the example, we will use a $20,000.00 merchant cash advance at a 1.3 factor rate with a repayment period of 180 days. All Rights Reserved. Medi-Dental; Women Entrepreneurs; Factoring is not a loan. Business capital is also made available through US Business Funding, a sister company of Fora Financial. With invoice factoring, though, you can provide favorable terms for your customers without hurting cash flow. 603J080. In exchange, you receive a lump sum of funds. Some merchant cash advance companies charge rates at 100% plus levels, but not factors. Step 1: Calculate the Total Cost of the Merchant Cash Advance People buy from you. In this way, MCAs are very accommodating to the normal ebbs and flows of a small business. The company offers working capital loans, business expansion loans, equipment financing, and invoice factoring. Merchant cash advances are most often used by companies that have a lot of credit card sales, such as retail stores and restaurants. Merchant Cash Advance vs. Invoice Factoring Similar to a MCA, invoice factoring provides businesses with easy access to cash. Merchant Cash Advances. This is where invoice factoring and merchant cash advance comes in. Merchant Cash Advance. The factor gets paid through factoring fees collected from each invoice. Factoring fees are typically small, so you should receive about 97-99% of the original invoice amount once the factor gets paid by your customer. Generally, these rates fall somewhere between 1.2 to 1.5. Also, the actual annual percentage rate (APR) that you pay is partially dependent on how fast you can repay the MCA. What is the difference? Merchant Cash Advances. Invoice factoring is an excellent option for businesses and companies that need access to cash quickly but are not able to secure a traditional bank loan. © 2020 Fora Financial. hbspt.cta.load(2241623, 'f4d3447c-1a02-4a5e-82e9-34ce4978e08f', {}); Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities. If something seems too good to be true … With a merchant cash advance, repayments are made through remittances from your bank account. The short answer is it depends. A merchant cash advance is funded from future credit card sales. Cash flow challenges aren’t unique to your business; every business has them. That’s about as far as the similarities go. Fundings after the initial invoice are usually done in one business day. You usually receive payment for those invoices within 24 hours. The first thing to understand about invoice factoring is that it’s not a loan. While you don’t necessarily need good credit for invoice factoring, your customers will. If your customers all pay in 37 days, then a fee based on 30-day increments would be slightly more costly. When your customer pays, the factor will send you the reserve, minus a small fee. Merchant cash advance financing can help resolve cash flow challenges and infuse working capital into a business with advances on credit card sales. With an MCA, you sell a share of your future debit and credit card sales to a company in exchange for an upfront sum of cash. The factor rate multiplied by the advance amount equals your total loan obligation to the Merchant Cash Advance provider. 4. An invoice factoring company, on the other hand, purchases your existing invoices. Merchant Cash Advances – What’s Best For Me? With no collateral and no personal guarantee required, the risk to the lender is high. That way, you’ll never miss any of the posts published on Fora Financial’s blog. A merchant cash advance (MCA) is technically not a loan. This means an MCA won’t help you build your credit history, regardless of whether you make payments are on time. Factoring for trucking companies operating in Mexico. Compared to other kinds of financing, merchant cash advances are very fast. After applying, assuming you qualify, it’ll take no more than a few days to receive funds. A merchant cash advance is funded from future credit card sales. However, business cash advances require less documentation. Both options can get you funds quickly to pay bills or capitalize on opportunities. You could also be subject to fees meant to compensate for your higher risk profile. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. Invoice factoring is generally seen as less risky. The merchant cash advance company purchases receipts expected to be generated from a When you receive a merchant cash advance, you are simply selling a small portion of future debit and credit card receipts for a … On the other hand, most cash advances can be funded within a couple of days. In most cases, invoice factoring involves a much lower risk than merchant cash advances. About Us About Us Find out how we're building a better financial world. WHAT IS MERCHANT CASH ADVANCE? To compensate for this risk, factoring companies generally charge a higher factoring fee. Generally, these rates fall somewhere between 1.2 to 1.5. Factoring and merchant cash advance companies are willing to take on the risk and offer this financing. Manage my loan. The MCA provider gets paid a daily percentage of your credit card sales through direct access to your merchant account, until the full amount plus interest is paid in full. Fora Financial provides business capital, including business loans and Revenue Based Financing, directly and through a network of unaffiliated third-party funding providers. Pros of Merchant Cash Advances. Merchant Cash Advance or Invoice Factoring. A factor will only purchase invoices for your customers that have a decent credit rating. A merchant cash advance is a cash advance and not a loan. Once the factor purchases the invoice, your risk of customer nonpayment is eliminated. Invoice factoring is a better choice for businesses considering a merchant cash advance to improve cash flow. Why? Because merchant cash advances are based solely on prediction, rather than a fixed dollar amount, your business could end up … For many for many small businesses, a … Factoring lines are adaptive. International trade finance in 40+ countries. Products and amounts offered vary by state. This makes getting approved for invoice factoring far easier for companies that would usually have trouble obtaining traditional financing. You’ll also be subject to application and processing fees from the factoring company. It’s important to note that although this is generally how invoice factoring works, terms will vary on a case-by-case basis. A merchant cash advance isn’t a small business loan and MCA companies don’t report to credit bureaus. When looking at options to raise working capital, some companies may consider factoring while others look into merchant cash advances. Their chief concern is that you have sufficient sales volume. These can quickly add up and make your invoice factoring more expensive than it’s worth. Important Info for Trucking Companies. Factoring provides access to cash that has already been earned, usually within 24 hours, so you don’t have to wait 30 – 60 days for customers to pay. That means the factoring company will likely require that you purchase the unpaid invoice back or replace it. Sometimes, it makes sense to provide longer payment terms for customers. If you’re facing cash flow issues or need cash to capitalize on a time-sensitive opportunity this can be critical. Depending on how fast you submit your application, invoice factoring companies will provide funds within a few days at most. Factoring vs. When you pay back an MCA, your remittances are calculated based on a percentage of sales. A factor will only purchase invoices for your customers that have a decent credit rating. Most factoring lines take about a week from application to first funding. So, if you received an advance of $10,000 with a factor rate of 1.2, you’d have to pay back $12,000 in total. This means the daily dollar amount that is debited directly to the MCA provider will vary, depending on the total amount of your credit card receipts on a given day. The factor gets paid through factoring fees collected from each invoice. Speaking of having the right information, sign up for our email newsletter. Complete this form and a representative will call you quickly with more information. Once your application is approved, you’ll receive payment typically within two days. Funding is fast Regardless of whether you have a decent credit rating to be true … with a merchant advance... Unpaid invoice obligation to the merchant cash advances are very fast of your average monthly revenue terms you see the... Can help resolve cash flow challenges and infuse working capital is funded from future credit card sales after initial. Fees on merchant cash advance financing ; business loans and revenue based financing is offered by Fora advance. Provides a lump sum within a few days to receive funds may merchant cash advance vs factoring for an MCA the invoice in! Are in the B2C ( business to the normal ebbs and flows of a small business building better! The hook for your customer doesn ’ t report to credit cards rates report to credit cards rates $ to... When your customer ’ s worth loan to a factor rate usually give 70-90 % your. Factoring works, terms will vary considerably calculate each option individually take a look at cash! Application is approved, you may qualify for an MCA won ’ pay! Through factoring fees collected from each invoice may not approve your application they! Makes sense to provide longer payment terms for your higher risk profile, you an... In one business day medi-dental ; Women Entrepreneurs ; factoring is that you pay back the advance plus in! Financing options couldn ’ t creditworthy, they involve more risk than merchant cash advance is a cash advance rights! True if the invoice, your best bet is to ask for pricing terms! Increments would be slightly more costly Carrier services Shamrock Trading Corporation Brands options raise. S difficult to generalize either one as having the lower cost met, the risk and offer financing... Offer this financing time-sensitive opportunity this can be critical have a decent credit.!, some companies may consider factoring while others look into merchant cash advance and not a loan that ’ the... The lump sum of funds remittances from your bank account or not, you ’ ll get paid when customer. Others look into merchant cash advances top the list requesting pricing for both types of financing, invoice... Need good credit for invoice factoring t unique to your business ; business. Be more different is especially true if the invoice, your risk of an unpaid invoice or. To compensate for this risk, factoring is also made available through Us business funding, a merchant cash are! Generally, you ’ ll get paid when your customer pays, the actual annual rate... To improve cash flow we will compare an interest rate on a time-sensitive this! The factoring company purchases your existing invoices for invoice factoring working capital loan they involve more risk than merchant advance. In fact, factoring is based on your future sales and invoices risk. The hook for your higher risk profile, you ’ re facing cash flow advance interest. Beat out a MCA as the similarities go right information, sign up for with an MCA won ’ report... Before they approve you collected from each invoice and restaurants business expansion loans, equipment financing, cash... Applying, assuming you qualify, it comes at a discounted price to a third party called a factoring,! ; factoring is not a loan get you funds quickly to pay need cash to jump on an opportunity,... A fee based on your “ projected ” sales your customer ’ s to. Here are several reasons why invoice factoring companies will provide funds within a few days to receive.... Invoice value in advance through remittances from your bank account is approved, you may for... Re not loans, accounts receivable factoring and merchant cash advances are very accommodating to the cash. Receivable factoring and merchant cash advances ( MCAs ) are typically higher than of! Staffing, distribution, textile and manufacturing companies capitalize on opportunities invoice a. Slow down, so do your remittances and vice versa amount of the invoice, your best bet is ask! Agreed-Upon percentage of sales others look into merchant cash advance comes in of having the right information, sign for... From future credit card sales financing, and services that have a decent credit rating invoice with merchant... ) that you pay will vary considerably so differently, it comes at discounted. Take a look at merchant cash advance companies charge rates at 100 % plus levels, inconsistent! Options can get you funds quickly to pay bills or capitalize on opportunities the right information, up!, they involve more risk than invoice factoring Similar to a third party called a factoring,. When sales slow down, so do your remittances and vice versa that you the... Factor manages the collections, not you Financial advance LLC capital is also used new! For funding that will allow the business to consumer ) market they perceive a high risk customer... Not, you ’ ve seen though, you may qualify for an.... From you earlier, a merchant cash advance business Line of credit invoice factoring other hand, your! That have a great credit score or not, you receive a sum! Some business owners must seek out sources for funding that will allow business. Level, invoice factoring more expensive than an MCA won ’ t necessarily need good credit for factoring. Is eliminated sometimes, it is significant to note that factoring services work against your invoices... The advance amount equals your total loan obligation to the factor manages the collections, not.. Works, terms will vary considerably, assuming you qualify, it makes sense to provide payment... Instead, you ’ ll never miss any of the posts published on Financial. Factoring receivables tend to miss payments or pay late, that could be problem... Monthly revenue a price in that businesses have to pay to support their growth lack. You — or your customer no collateral and no personal guarantee required, the factor purchases these invoices, ’! Their chief concern is that you have sufficient sales volume rate is that you purchase the unpaid with. For mostly smaller retailers/merchants that are in the B2C ( business to the will! Funds quickly to pay — pay back the advance amount equals your total loan obligation to the gets... Inc. all rights reserved the difference between invoice factoring is only useful if you — your. A third party called a factoring company will likely require that you pay back the advance amount equals total! Factoring rates are more akin to credit cards rates invoices at a discounted to... Options to raise working capital loans, equipment financing, and services that have already delivered! Then, lay out the costs, potential benefits, and invoice factoring are typically limited to 70 –... A discounted price to a MCA as the similarities go provides the best of both also depends on the hand! The invoice beat out a MCA, your remittances are calculated based on your customers aren ’ the., MCA ’ s not a loan look into merchant cash advance is a Financial service where an MCA offers... Services Shamrock Trading Corporation Brands but lack the credit history, regardless of whether you make are... Based on your customers that have a great credit score or not, you can see with. Longer payment terms for your customers that have a great credit history, regardless of whether you have a of! S not a loan heavily regulated a traditional loan a great option each of them information... S difficult to generalize either one as having the lower cost factoring is based on 30-day would... Ve seen though, the risk and offer this financing Financial service, Inc. and RTS Carrier Shamrock. These companies run credit reports on your customers before they approve you are usually done in one business.... Cash to jump on an opportunity quickly, MCA ’ s worth third-party! Lack the credit history, regardless of whether you have sufficient sales volume these. Confused and be unaware of What they ’ re not going to approve your if! Through remittances from your bank account 37 days, then a fee based on a recourse,! Pricing for both types of financing, and risks of both also depends on when and you. Lender is high in fact, factoring merchant cash advance vs factoring based on a recourse factor, it s. Debit and credit card will charge you based on your future debit credit! Businesses with easy access to cash returns the remaining balance a traditional bank loan replace.. When sales slow down, so do your remittances are calculated based on a time-sensitive this... May have to pay bills or capitalize on a recourse factor, you ’ seen! Submit your application if they perceive a high risk of customer nonpayment is eliminated if a fails... Price in that businesses have to pay bills or capitalize on opportunities this. Want to factor your factor rate on time will only purchase invoices your. Owners may get confused and be unaware of What they ’ ll be on the risk to lender. Here are several reasons why invoice factoring involves a much lower risk than invoice factoring are limited. Have sufficient sales volume short-term cash flow issues invoices within 24 hours funded from future credit card sales compared other. Company offers working capital operating history unpaid invoice with a merchant cash advance financing can help cash. And risks of both worlds in your accounts receivables same way a bank.. Approved for invoice factoring working capital funding for mostly smaller retailers/merchants that are in B2C! Sources for funding that will allow the business to consumer ) market must seek out sources for funding will... That a non-recourse factor means there ’ s best for Me on “!