How Long Does It Take to Get Invoice Financing?

Quick Answer

Invoice financing typically takes 1–7 days from application to receiving your first advance. Online lenders and fintech platforms can approve applications in as little as 24 hours, while traditional factoring companies may take 3–7 business days for initial setup. Once your account is established, subsequent advances are usually funded within 1 business day.

What Is Invoice Financing?

Invoice financing allows businesses to borrow money against their outstanding invoices (accounts receivable). Instead of waiting 30, 60, or 90 days for customers to pay, you receive an advance — typically 80–90% of the invoice value — almost immediately. The financing company collects payment from your customer, then remits the remaining balance minus their fee.

There are two main types:

• Invoice factoring — You sell your invoices to a factoring company, which collects payment directly from your customers
• Invoice discounting — You borrow against your invoices but retain control of customer relationships and collections

Timeline Breakdown

Stage	Timeline
Application submission	1–2 hours
Document review and underwriting	1–3 business days
Account approval	1–5 business days
First invoice submission	Same day as approval
First advance disbursement	1–2 business days after submission
Subsequent advances	Same day – 1 business day

Factors That Affect Approval Speed

Your Customers' Creditworthiness

Unlike traditional loans, invoice financing approval depends primarily on your customers' ability to pay rather than your own credit history. If your customers are large, creditworthy companies with strong payment histories, approval is faster. Financing companies can quickly verify the credit standing of well-known businesses.

Invoice Quality

Clean, undisputed invoices for completed work or delivered goods are funded fastest. Invoices that are past due, disputed, or tied to incomplete projects face additional scrutiny. Most financing companies require invoices to be less than 90 days old.

Documentation Readiness

Having your documents organized speeds up the process significantly. You will typically need:

• Business financial statements (last 1–2 years)
• Accounts receivable aging report
• Sample invoices
• Customer contact information
• Business tax returns
• Articles of incorporation or business license

Type of Provider

Provider Type	Typical Approval Time	Best For
Online/fintech platforms	24–48 hours	Speed, smaller invoices
Traditional factoring companies	3–7 business days	Ongoing high-volume factoring
Bank-based invoice financing	5–14 business days	Lower fees, existing bank relationships

How Invoice Financing Works Step by Step

1. Apply with a financing company — Submit your application online or in person. Most online platforms have streamlined applications that take 15–30 minutes.
2. Provide documentation — Upload financial statements, accounts receivable reports, and sample invoices.
3. Underwriting review — The financing company evaluates your customers' creditworthiness and your invoicing practices. This is the step where timelines vary most.
4. Receive approval and terms — You will receive an offer detailing the advance rate (typically 80–90%), discount rate or fee (typically 1–5% per month), and any additional terms.
5. Submit invoices for funding — Once approved, you submit individual invoices as you want to finance them.
6. Receive your advance — The financing company advances 80–90% of the invoice value, usually within 1 business day.
7. Customer pays the invoice — Your customer pays the financing company (factoring) or pays you (discounting) according to the original payment terms.
8. Receive the remainder — After the customer pays, you receive the remaining 10–20% minus the financing company's fee.

Costs of Invoice Financing

Invoice financing fees typically range from 1–5% of the invoice value per month. The exact rate depends on:

• Volume of invoices financed
• Your customers' credit quality
• Industry risk level
• Length of payment terms
• Your overall business profile

While more expensive than traditional bank loans, invoice financing provides faster access to capital and is available to businesses that may not qualify for conventional financing.

Tips for Getting Funded Faster

• Choose an online platform for the fastest approval — companies like BlueVine, Fundbox, and AltLINE can approve within 24 hours
• Prepare documentation in advance — Having financial statements and AR reports ready prevents back-and-forth delays
• Start with your strongest invoices — Submit invoices from your most creditworthy customers first to build a track record
• Ensure invoices are clean — Clear payment terms, accurate amounts, and no disputes speed up funding

Bottom Line

Most businesses can secure invoice financing within 1–3 business days through online platforms, with traditional factoring companies taking 3–7 days for initial setup. After the initial approval, ongoing advances are typically funded within 24 hours of submitting qualifying invoices.