Factoring Misconceptions
Factoring has critics. This post answers the common objections to factoring and shows where it helps a business with slow-paying…
3 Benefits of Factoring
Factoring turns unpaid invoices into working capital. Businesses use it three ways: to cover payroll and operating costs, to get through the wait for customer payments, and to pay for growth.
Boost Your Cash Flow Today: Access immediate working capital for your business by leveraging factoring. Discover how factoring can help you meet your operating expenses, manage payroll, and seize growth opportunities. Get started now!
Say Goodbye to Cash Flow Challenges: Tired of waiting for customers to pay their invoices? Factoring can provide a reliable solution to bridge the cash flow gaps. Take control of your finances and ensure smooth operations. Explore factoring options now!
Unlock Your Business’s Potential: Don’t let financial constraints hold your business back. With factoring, you can unlock the funds tied up in your accounts receivable and fuel your growth. Discover the power of factoring and propel your business to new heights. Take the first step today!
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Common Questions
What Business Owners Ask Before They Factor
Short answers on advances, funding speed, risk and customer notice. The full FAQ covers fees, contracts and qualifying.
Get in touchHow much of each invoice do you advance?
Most businesses receive 80–90% of the invoice value up front. Freight carriers receive a full advance, which is standard in freight factoring, and we make exceptions to the range case by case. When your customer pays, we release the remaining balance to you, minus our fee.
How fast can I get funded?
Setting up your account typically takes 24–48 hours from signup. After that, we fund invoices the same day you submit them.
What happens if my customer doesn't pay?
Sigma factors with recourse, so an invoice your customer never pays comes back to you. You can add credit insurance, which pays when an insured customer fails to pay, under the policy's terms. We don't offer non-recourse factoring. It costs more and covers only a customer's bankruptcy or insolvency, so late payment and non-payment stay with you anyway. Compare the options.
Will my customers know I use factoring?
Yes. A Notice of Assignment tells your customer to send payment to Sigma, so how we handle collections and communication matters. The staffing and service business pages explain how that works in practice.
How is factoring different from a line of credit?
Factoring is the sale of invoices you've already issued, so the funding grows with your sales. A line of credit is a loan with its own underwriting and covenants. Read factoring vs. a line of credit for a side-by-side comparison.
See Your Advance Rate and Fee in Writing
Tell us about your business and the invoices you want funded. Within 48 hours you get a proposal with your advance rate, fee and terms, and you don't have to sign it.
- No commitments
- No hidden fees
- No personal guarantee required