Business Funding/Invoice Factoring & Receivables Funding

Invoice Factoring & Receivables Funding for B2B Businesses

If your business invoices customers on net terms, your biggest cash-flow problem is usually timing: the work is done and the revenue is earned, but the money is locked up in receivables for 30, 60, or even 90 days while payroll, suppliers, and operating costs come due now. Y Millennial Funding solves that gap two ways, and helps you choose between them. The first is true invoice factoring: your invoices are purchased at an advance of typically 80-95% depending on industry, you get paid within a day of invoicing, and the factor collects from your customers on their normal terms. Approval rides on your customers' creditworthiness, so young businesses with strong accounts qualify. The second is our non-notification revenue-based funding, for businesses that want the cash-flow relief of factoring without assigning invoices or involving customers: a merchant cash advance against your future receivables, for B2B businesses doing $25,000 or more in monthly revenue, approved on the strength of your bank deposits rather than credit score alone — same-day decisions for eligible applications, funding within 24 hours of a signed agreement, and remittance that scales to your deposits. No assignment, no customer notification, no lockbox. Factoring and merchant cash advances are purchases of receivables, not loans. Not all applicants qualify.

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Takes under a minute. No credit pull.

Same-day decisions · Approved on revenue, not credit · No credit pull to check eligibility · Not all applicants qualify.

Industry Snapshot

Business Size

Invoice factoring and receivables funding serve B2B businesses that invoice customers on net terms and wait 30, 60, or 90 days to get paid — staffing agencies, trucking and freight carriers, wholesalers and distributors, manufacturers, and commercial-service contractors. What they share is revenue that is earned but locked up in unpaid invoices, creating a cash-flow gap between doing the work and collecting on it.

Revenue Range

$150,000 - $10,000,000 annual revenue

Avg. Deal Size

$15,000 - $500,000

Why Traditional Lenders Struggle with Invoice Factoring & Receivables Funding

Banks and traditional lenders struggle with receivables-driven businesses because the value is tied up in invoices rather than hard collateral like real estate, revenue looks uneven when it follows net terms and project cycles, many of these businesses are under three years old or thinly capitalized, and a single prior credit issue can sink the application. Traditional invoice factoring, meanwhile, requires assigning your invoices, notifying your customers, and routing their payments to the factor — which many business owners do not want. Bank timelines also run weeks, too slow for a business that has to make payroll against invoices that have not been collected.

Why Revenue-Based Funding Works for Invoice Factoring & Receivables Funding

Receivables-based funding fits B2B businesses because approval rides on receivables strength, not collateral or credit score alone. With true factoring, approval is based on your customers' creditworthiness — a young business with strong customers qualifies — and you get paid within a day of invoicing instead of in 30-90 days. With our non-notification revenue-based funding, approval weighs the strength and consistency of your bank deposits: same-day decisions for eligible applications, funding within 24 hours of a signed agreement, remittance that scales with deposits, and you keep full control of your invoices, customer relationships, and collections. We offer both and help you pick the fit. Not all applicants qualify.

See if your invoice factoring & receivables funding business pre-qualifies

Checking your options takes under a minute and won't affect your credit. Approved on revenue, not credit score.

Prefer to talk? Call (855) 774-6461

Same-day decisions · Approved on revenue, not credit · No credit pull to check eligibility · Not all applicants qualify.

Common Uses of Funding

Covering payroll and operating expenses while invoices are outstanding; funding materials, labor, or inventory to fulfill a new order or contract; bridging net-30 to net-90 customer payment terms; taking on a larger account that requires upfront cost before the first payment; and smoothing cash flow through seasonal or project-based revenue swings.

Common Challenges

Cash trapped in unpaid invoices while payroll, suppliers, and operating costs come due now; customers who pay on slow net-30 to net-90 terms; growth that outpaces collections, where landing a bigger account actually deepens the cash gap before it pays off; seasonal or project-based revenue that makes collections uneven; and an inability to take on new work because existing receivables are tying up working capital.

How Repayment Works

Two structures are available. True invoice factoring is the purchase of your invoices: you receive an advance (typically 80-95% depending on industry) and the factor collects from your customer, remitting the balance minus the fee; the invoice itself settles the advance, with no remittance from your account. Alternatively, our non-notification revenue-based funding is a merchant cash advance against your overall future receivables — a lump sum repaid through a set daily or weekly ACH that scales with deposits, with no invoice assignment and no customer contact. We help you choose the structure that fits.

Seasonal Considerations

Businesses with seasonal or project-based revenue see the widest invoice-to-payment gaps at peak — a staffing agency staffing up for a busy season, a freight carrier taking on more loads, or a distributor building stock ahead of demand all front costs well before the related invoices are collected. Funding sized to the season and repaid as deposits arrive smooths those swings.

Regulatory Environment

Both structures are purchases of receivables, not loans, and are not regulated as lending. Traditional factoring involves a UCC filing on receivables and, in most programs, notice to your customers to remit to the factor. Non-notification revenue-based funding involves no invoice assignment, no customer notification, and no lockbox — your customer relationships and collections stay entirely with you. Standard disclosures apply, and not all applicants qualify.

Industry Terminology

Key terms: receivables (money owed to you on outstanding invoices), net terms (the 30/60/90-day window a customer has to pay), factoring (selling invoices at a discount for immediate payment), advance rate, factoring fee, factor rate, holdback, recourse vs. non-recourse, and notification vs. non-notification funding. Y Millennial Funding offers both true invoice factoring and non-notification revenue-based funding.

Nationwide Invoice Factoring & Receivables Funding Funding

Y Millennial Funding works with invoice factoring & receivables funding businesses across the United States. Because our funding is revenue-based and delivered electronically via ACH, we are able to work with businesses nationwide — not just in a single region. Wherever your business operates, we can underwrite based on your revenue history and get you funded quickly.

Local Markets We Serve

Below are some of the markets where we have dedicated local expertise in invoice factoring & receivables funding funding.

Frequently Asked Questions

Common questions about invoice factoring & receivables funding business funding.

Related Industries

Helpful Tools

Free resources to help you understand and plan your merchant cash advance.

Related Resources