FAQs
Answers to the Questions You're Actually Asking
Not product descriptions. Real answers to the concerns that matter before you decide whether factoring is right for your business.
No questions match your search.
Common Questions
Speed & Process
What happens after you apply, and how fast it actually moves.
Get in touchHow quickly can I get funded after applying?
Account setup typically takes 24–48 hours from signup. Once your account is active, invoices you submit are funded the same day. Setup includes customer credit checks, document review, and verifying your first invoices, and those steps don’t repeat for every invoice. We tell you this upfront because it’s the accurate answer.
How long does the application take?
The initial form takes about 5 minutes. We don’t require financial statements, tax returns, or business plans to apply — just basic business information, your industry, and the names of the customers you want to factor. There’s no application fee and no credit check on your business.
What happens if my customer pays late?
After you submit the application, a licensed underwriter is assigned to your account. We verify your customers’ credit, confirm your invoice details, and issue a written proposal. You review the proposal with no obligation to sign. Setup typically takes 24–48 hours from signup, and after that invoices you submit are funded the same day. See the full step-by-step process on our How It Works page →
Common Questions
Your Customers & Collections
The most common concerns — about the Notice of Assignment and how we interact with your customers.
Get in touchWill my customers know I'm using factoring?
Yes — and this is worth understanding clearly. When you factor an invoice, we send a Notice of Assignment (NOA) to your customer directing payment to Sigma. This is a standard, legal industry practice used by thousands of businesses. Our collections team contacts your customers professionally and courteously — exactly as you would. The NOA does not indicate financial distress. The vast majority of clients experience no friction with their customers. We do not contact your customers aggressively or in ways that could damage your relationship.
What does your collections process look like?
We send standard payment reminders at 30, 45, and 60 days. Our team is trained to represent your business professionally — they are not debt collectors, and we don’t use aggressive tactics on non-delinquent invoices. Professionally managed collections is a service we provide, not a threat. We’re handling your A/R follow-up so you don’t have to.
What happens if my customer pays late?
We follow up on late payments on your behalf at no additional charge. Sigma factors on a recourse basis, so if a customer never pays, you replace or buy back the invoice. Credit insurance, if you add it, covers a customer who doesn't pay, per the policy terms. Your proposal spells out the recourse terms and the insurance option.
Common Questions
Credit Risk & Protection
What protection you actually have — and where the limits are. No false promises.
Get in touchDo you offer non-recourse factoring?
No. Sigma factors on a recourse basis only. Non-recourse factoring means the factor takes the loss only if your customer goes bankrupt or becomes insolvent. That is all it covers. A customer who pays late, stops paying without becoming insolvent, or disputes the invoice is still your responsibility, and non-recourse costs more and approves fewer customers. Recourse factoring with optional credit insurance covers more, including a customer who simply doesn’t pay.
Why is non-recourse a weaker choice?
Slow payment and non-payment. Non-recourse covers only a customer’s bankruptcy or insolvency, so a customer who pays late or simply doesn’t pay is not covered. Credit insurance is the option for that. Invoice disputes. If your customer refuses to pay because of a disagreement about the quality of work or goods delivered — not because they can’t pay, but because they won’t — that’s not a credit risk event and non-recourse doesn’t cover it. You pay a higher fee for that narrow cover, which is why Sigma offers recourse factoring with optional credit insurance instead. We work with you to resolve disputes, but credit risk and dispute risk are different things.
Do I need to provide a personal guarantee?
No. We fund based on your customers’ creditworthiness, not yours. We do not require personal guarantees as a standard condition of factoring. Your personal assets are not on the line. This is one of the structural advantages of factoring over most bank lending products — the credit evaluation runs through your customer, not through you.
Common Questions
Costs & Terms
What factoring costs, how the fee is calculated, and what you're committing to.
Get in touchHow much does factoring cost?
Our fees vary based on your industry’s risk profile, your customers’ credit quality, and your invoice terms — so we don’t publish a one-size-fits-all rate. Use our Capital Estimator for a real-time illustration, or get a proposal and we’ll show you the exact fee for your specific invoices. No surprises after you sign.
Are there hidden fees?
No. One flat fee per invoice factored. No wire fees, no monthly minimums, no setup fees, no termination penalties. What’s shown in your proposal is what you pay — no line items appear at closing that weren’t disclosed upfront.
Is there a minimum monthly volume?
None. There’s no minimum invoice volume or monthly submission requirement. You can factor one invoice or a hundred — entirely on your schedule. Some clients use Sigma every week; others factor selectively based on cash flow need. You’re in control of the cadence.
Is there a long-term contract?
No. Our standard agreement is month-to-month with 30 days notice prior to renewal. There’s no annual commitment. If your situation calls for different terms — including exit provisions tied to a specific business event like a bank line of credit becoming available — we can modify the agreement to fit. Our agreements are flexible by design.
Common Questions
Eligibility
Which invoices, industries, and businesses qualify for Sigma's factoring facility.
Get in touchWhat industries do you work with?
We fund businesses across a wide range of B2B industries. Our primary verticals include:
Staffing
Manufacturing
Trucking
Construction
Professional Services
Wholesale Distribution
Healthcare
Government / Defense
Logistics / 3PL
If your industry isn’t listed, contact us — we evaluate each portfolio individually.
What invoice size do you fund?
There’s no minimum or maximum invoice size. We structure solutions around your specific invoice profile — from smaller recurring invoices to large single-customer transactions. Eligibility is based on your customer’s creditworthiness, not the dollar amount. If your invoice is legitimate, deliverable, and issued to a creditworthy B2B customer, it’s generally eligible.
Do my customers need to be creditworthy?
Yes. We fund invoices where your customer is a creditworthy business. We evaluate your customer’s credit — not yours. Most established B2B customers qualify without issue. Government entities, large enterprises, and publicly traded companies qualify easily. Smaller or newer customers may require additional review.
Do you fund invoices to consumers (B2C)?
No. We fund B2B invoices only — your customers must be businesses, government entities, or non-profits. Consumer receivables (invoices to individual people) are not eligible for factoring through Sigma. If your revenue mix includes both B2B and B2C, we can work with the B2B portion of your A/R.
Get Answers for Your Own Invoices
A written proposal shows your advance amount, fee, and exact terms. Proposal within 48 hours. No obligation.