Invoice Factoring
Process.
Disciplined. Conservative. Relationship-based. Our process is designed to build lasting capital partnerships, not chase volume.
How Invoice Factoring WorksWhat We Evaluate
Our underwriting goes beyond financials. We assess the fundamental quality and sustainability of every capital relationship.
Customer Strength
We underwrite the creditworthiness of your customers — the parties who owe on the invoices. Strong account debtors mean reliable capital for your business.
Invoice Quality
We evaluate the nature, documentation, and enforceability of each receivable. Clean invoices from established commercial relationships are the foundation of every facility.
Margin Protection
Our structure is designed to protect your long-term profitability. We don't build facilities that erode your margins or create dependency — we build partnerships that strengthen your position.
Relationship Commitment
Every client works with a dedicated principal who understands your industry. Our underwriting considers the trajectory of the relationship, not just a single transaction.
What the Factoring Process Actually Looks Like
The invoice factoring process is more straightforward than most operators expect. Here is how it works from first contact to funded account.
Submit Your Invoices
Once your facility is established, you submit invoices to Heritage for invoices you have delivered but not yet collected. Most clients do this weekly or as new invoices come in. There is no minimum volume requirement to start.
Verification & Approval
We verify each invoice with the account debtor — your customer — to confirm the work is complete and the invoice is undisputed. This typically takes one business day for established relationships.
Advance Issued
Once verified, we advance 80–92% of the invoice face value directly to your operating account. For most clients this happens within 24–48 hours of submission. There is no waiting for your customer to pay.
Customer Pays Heritage
Your customer remits payment directly to Heritage per your factoring arrangement. We handle collections professionally — your client relationships are always protected.
Reserve Released
When your customer pays in full, we release the remaining balance (the reserve) minus our factoring fee. Your fee is only charged for the days the invoice is outstanding — not a flat monthly rate.
Repeat as Needed
Most clients run a rolling facility — submitting new invoices as work is completed and receiving advances continuously. Your available capital grows with your invoice volume.
What to Expect on Timing
Initial setup — including underwriting, facility documentation, and notice to your customers — typically takes 3–7 business days depending on how quickly we receive your documents and how responsive your account debtors are.
Once your facility is active, advances on new invoices are generally funded within 24–48 hours of submission and verification. Most clients receive their first advance within one week of signing their agreement.
Payment cycles vary by customer. Net-30 invoices typically resolve in 25–35 days. Net-60 invoices in 50–70 days. You receive your advance on day one regardless of when your customer pays.
What Happens Behind the Scenes
The invoice factoring process is simple on the surface — but a disciplined operational structure runs underneath every transaction.
Underwriting
We underwrite your customers, not just your business. Our review examines account debtor credit quality, payment history, and financial stability. A strong customer base is the most important factor in approving a factoring facility.
Customer Verification
Before advancing funds, every invoice is verified directly with your customer. This confirms the work is complete, the invoice is undisputed, and there are no pending offsets or credits. Verification protects both parties and keeps the facility clean.
Risk Management
We set concentration limits on individual account debtors and monitor aging continuously. If a customer starts paying slowly, we communicate early — well before it creates a problem for your facility or cash flow.
Transaction Structure
Each transaction is structured as a purchase of receivables — not a loan. Heritage acquires your invoice, advances the majority immediately, and collects directly from your customer. The remaining reserve is released upon collection, net of fees.
Exposure Control
We manage total exposure per debtor and per client. This isn't just risk management for Heritage — it ensures your facility stays healthy and scalable as your business grows. Overconcentration in a single customer is flagged and addressed proactively.
Ongoing Monitoring
Active facilities are reviewed regularly. We track payment velocity, debtor performance, and volume trends. If something shifts — in your business or your customers' — we address it directly rather than quietly adjusting terms.
Who This Process Works Best For
The invoice factoring process works best for businesses that bill commercial customers on terms — and where the gap between completing work and receiving payment creates meaningful operational friction.
It is particularly well-suited for contractors, subcontractors, staffing firms, logistics companies, and manufacturers who carry large receivables balances relative to their cash on hand. If your customers are creditworthy and your invoices are clean, factoring is likely a strong structural fit.
What We Don't Do
'Easy approvals' regardless of quality
'Bad credit accepted' marketing
Volume-chasing at the expense of relationships