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. Invoice factoring is the traditional fix — selling your invoices to a factor at a discount — but it means assigning your receivables, notifying your customers, and handing your collections to a third party. Y Millennial Funding offers a different path: revenue-based business funding for B2B businesses doing $50,000 or more in monthly revenue, structured as a merchant cash advance against your future receivables. We are a direct funder, not a broker, and we approve on the strength of your bank deposits rather than credit score alone — so a business with consistent invoiced revenue can be evaluated regardless of credit history or how slowly its customers pay. You get same-day decisions for eligible applications and funding within 24 hours of a signed agreement, with remittance that scales to your deposits instead of a fixed monthly payment. And unlike factoring, you keep control of your invoices, your customer relationships, and your collections — there is no assignment, no customer notification, and no lockbox. It is the cash-flow relief of factoring without giving up your receivables. A merchant cash advance is not a loan; it is the purchase of future receivables. Not all applicants qualify.
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Industry Snapshot
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.
$150,000 - $10,000,000 annual revenue
$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
Revenue-based funding fits receivables-driven businesses because approval weighs the strength and consistency of your bank deposits rather than collateral or credit score, so a business with steady invoiced revenue can be evaluated regardless of credit history or how long its customers take to pay. Funding can be approved same-day for eligible applications and available within 24 hours of a signed agreement. Because remittance scales with deposits, it tracks your actual cash flow — and unlike factoring, you keep control of your invoices, your customer relationships, and your collections. 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
Funding is structured as a merchant cash advance — an advance against a portion of your future receivables — repaid through a set daily or weekly ACH amount that scales with your deposit volume. Unlike traditional invoice factoring, you are not selling individual invoices, assigning your receivables, or routing customer payments to a third party, and your customers are not notified or involved. Remittance tracks your actual cash flow rather than a fixed monthly payment.
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
Receivables-based funding is not a loan and is not regulated as one; a merchant cash advance is the purchase of a portion of future receivables. Unlike traditional factoring, there is no assignment of invoices, no UCC notification to your customers, 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 to a third party at a discount), advance rate, factor rate, holdback, and notification vs. non-notification funding. Y Millennial Funding provides non-notification, revenue-based funding rather than traditional factoring.
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.
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
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