When cash flow is tight, speed matters.
If you’re researching invoice factoring, one of the first questions you’re probably asking is:
How fast can I actually get funded?
The short answer:
Most businesses can receive funding within 24–48 hours after approval.
In some cases, first-time funding can happen in as little as 24 hours.
But the real answer depends on your industry, customers, and how quickly paperwork is completed.
This guide provides a clear, step-by-step breakdown of the funding timeline so you know exactly what to expect.
Quick Answer: How Fast Is Invoice Factoring?
Typical timeline:
- Application approval: 24–48 hours
- First funding: 24 hours after setup
- Ongoing funding: Same day or within 24 hours of invoice submission
For trucking companies, funding can often happen the same day bills of lading are submitted. For staffing and construction companies, funding typically follows invoice verification.
Now let’s break it down step by step.
Step 1: Application & Initial Review (Same Day – 24 Hours)
The first step is submitting a simple application with:
- Basic company information
- Accounts receivable aging report
- Customer list
- Sample invoices
Unlike traditional bank loans, factoring approval is based primarily on your customers’ creditworthiness, not your business credit score.
At EZ Invoice Factoring, approvals are typically issued within 24 hours after receiving required documents.
Why This Step Is Fast
- No lengthy underwriting like bank loans
- No tax return requirements in most cases
- Focus on customer credit strength
Step 2: Due Diligence & Customer Verification (1–2 Days)
Once pre-approved, the factoring company:
- Reviews your customers’ credit
- Verifies outstanding invoices
- Confirms there are no existing liens on receivables
- Sends notice of assignment to customers
For businesses with clean documentation and reputable customers, this step moves quickly.
What Can Slow It Down?
- Incomplete AR reports
- Existing UCC filings
- Customers that are difficult to verify
- Contract disputes
With organized records, this phase typically takes 1–2 business days.
Step 3: Agreement Signing & Account Setup (Same Day)
After due diligence:
- You sign the factoring agreement
- The factor files necessary UCC documentation
- Your account is activated
This can often be completed electronically within hours.
Step 4: First Invoice Submission & Verification (Same Day)
Once your account is active:
- You submit invoices
- The factoring company verifies them
- Advance funding is released
For many industries:
- Trucking: Funding often occurs the same day POD (proof of delivery) is received.
- Staffing: Funding may follow timesheet approval.
- Manufacturing & B2B services: Funding typically follows invoice confirmation.
Step 5: Funding Hits Your Account (Within 24 Hours)
After verification, funds are wired directly to your bank account.
Most clients receive:
- 80–95% advance rate upfront
- Remaining balance (minus fees) after customer payment
For ongoing clients, funding often becomes:
- Same-day ACH
- Next-day wire
- Automated daily funding cycles
Total Timeline: What to Expect
| Stage | Time Estimate |
|---|---|
| Application Review | 24 hours |
| Due Diligence | 1–2 days |
| Setup & Agreement | Same day |
| First Funding | 24 hours after setup |
Total for new clients: Typically 2–4 business days
Ongoing funding: 24 hours or less per invoice
Why Invoice Factoring Is Faster Than Bank Financing
Traditional loans can take:
- Weeks of underwriting
- Extensive financial statements
- Collateral appraisals
- Committee approvals
Invoice factoring skips those steps because:
- Invoices are the collateral
- Approval is based on customer credit
- No long-term debt is created
This is why factoring is widely used in industries where payroll, fuel, materials, or operating expenses cannot wait.
Industry-Specific Funding Speed
Trucking & Freight Factoring
- Often same-day funding
- Mobile document uploads
- Broker credit checks completed quickly
Staffing & Payroll Funding
- Weekly recurring funding cycles
- Ideal for covering payroll before client payment
Construction
- May require additional verification
- Speed depends on billing structure
Manufacturing & Distribution
- Typically 24-hour funding after verification
What Impacts How Fast You Get Funded?
Several factors influence speed:
1. Your Customers’ Credit Quality
Stronger customers = faster approvals.
2. Document Organization
Clean AR aging reports and clear invoices speed everything up.
3. Existing Liens
Open UCC filings from other lenders may require payoff or subordination.
4. Industry Complexity
Industries with disputes or retainage structures may take slightly longer.
Can You Get Same-Day Funding?
Yes—especially if:
- Your paperwork is ready
- Customers are credit-approved
- There are no outstanding liens
- You’re in a fast-moving industry like trucking
After your account is fully set up, same-day funding becomes very common.
How EZ Invoice Factoring Speeds Up the Process
At EZ Invoice Factoring, we focus on:
- Simple application process
- Fast credit approvals
- Clear, transparent agreements
- Dedicated account support
- No unnecessary red tape
We understand that when you apply for factoring, it’s usually because cash flow is urgent.
That’s why our process is designed to move quickly without sacrificing accuracy or transparency.
Frequently Asked Questions
How long does it take to get approved for invoice factoring?
Most approvals happen within 24–48 hours.
Can I get funding the same day I apply?
In some cases, yes—especially if documents are complete and customers are credit-approved.
Is first-time funding slower than ongoing funding?
Yes. Initial setup takes 2–4 business days. After setup, funding typically happens within 24 hours per invoice.
Does factoring require good credit?
No. Approval is primarily based on your customers’ credit, not your personal or business credit score.
Final Answer: How Fast Can You Get Funded?
If your paperwork is organized and your customers are creditworthy, you can typically receive funding in 2–4 business days for first-time setup, and within 24 hours for ongoing invoices.
For many businesses, that speed is the difference between:
- Making payroll
- Taking on new contracts
- Buying inventory
- Covering fuel and operating expenses
Cash flow doesn’t have to slow your growth.
Need Fast Funding?
If your business needs immediate working capital, EZ Invoice Factoring can help you get funded quickly and efficiently.
Contact us today for a free consultation and see how fast your invoices can turn into cash.
