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Invoice Factoring & Accounts Receivable Financing

Turn Unpaid Invoices Into Working Capital

Invoice Factoring vs. Accounts Receivable Financing

📊 Unlock Working Capital from Your Receivables

Many businesses complete the work, submit the invoice, and then wait 30, 60, or even 90 days to receive payment. Meanwhile, payroll, materials, inventory, insurance, and other operating expenses continue. Invoice Factoring and Accounts Receivable Financing are two proven ways to convert outstanding commercial invoices into working capital—but they work differently. Most businesses waiting to collect business-to-business invoices have two primary financing options: Invoice Factoring and Accounts Receivable Financing. For transportation companies, Freight Factoring is a specialized form of Invoice Factoring designed specifically for the trucking industry. Northrop Capital Group works with business owners to evaluate these options and recommend the solution that best fits your business, your customers, your cash flow needs, and your long-term growth strategy.

📄Invoice Factoring

  • Invoice factoring allows a business to sell qualifying unpaid business-to-business invoices to a factoring company in exchange for immediate working capital. The factoring company advances a significant portion of the invoice value, collects payment from your customer, and then remits the remaining balance—less agreed-upon fees. Invoice Factoring may be a good fit if you:
  • Need immediate cash flow
  • Invoice commercial customers
  • Have Net 30, 60, or 90 payment terms
  • Your customers are established businesses with reliable payment histories.

📊 Accounts Receivable Financing

  • Accounts Receivable Financing (A/R Financing) allows businesses to borrow against eligible outstanding receivables while retaining ownership of their invoices and continuing to manage customer collections. Unlike invoice factoring, your receivables are generally used as collateral rather than being sold. As your customers pay their invoices, your available borrowing capacity is replenished, making A/R Financing an ongoing source of working capital for many established businesses. For companies with strong commercial receivables and consistent cash flow needs, Accounts Receivable Financing can provide flexible access to capital while allowing you to maintain your existing customer relationships and collection process. Accounts Receivable Financing may be a good fit if:
  • You want to retain ownership of your receivables.
  • You have an established accounts receivable portfolio.
  • You need ongoing working capital to support operations.
  • You prefer a revolving financing solution tied to your receivables.
  • You have commercial customers with reliable payment histories.

🚚 Freight Factoring (Specialized for transportation companies)

If your business operates in the transportation industry, Freight Factoring offers many of the same benefits as Invoice Factoring but is specifically designed for carriers, owner-operators, freight brokers, and trucking companies. These programs often include industry-specific features such as fuel advances, fuel card programs, and fast funding after delivery.
Which Solution Is Right for Your Business?
Every company's cash-flow needs are different. Depending on your industry, customer base, invoice volume, and growth goals, one solution may be more advantageous than the other. Northrop Capital Group will review your business and help determine whether Invoice Factoring, Accounts Receivable Financing, Freight Factoring, or another working-capital solution best supports your objectives.
Request Your Cash Flow Review
Easily Compare Your Cash Flow Solutions
📄Invoice Factoring
  • Sell qualifying invoices for immediate cash flow.
📊 Accounts Receivable Financing
  • Borrow against eligible receivables while retaining ownership of your invoices.
🚚 Freight Factoring
  • Specialized funding solutions designed for transportation companies, carriers, and owner-operators.

Let's Find the Right Financing Solution

Every business has different cash flow needs. Tell us about your business, receivables, and financing goals. We'll review your situation and recommend the financing solution that best fits your objectives.

Request Your Cash Flow Review
Questions? Speak with an Advisor
(405) 310-1190
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  • Northrop Capital Group helps business owners secure the right capital for growth, expansion, acquisitions, and long-term success. Through our nationwide lending network and strategic advisory approach, we help clients evaluate financing options with confidence.
Northrop Capital Group is not a direct lender. Financing is provided by lending partners and is subject to approval. Terms vary by program.
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