How Much Does Invoice Factoring Cost? Fees Explained With Real Numbers
Factoring quotes are hard to compare because each factor states its price differently. This guide shows what you pay on…
Invoice Factoring for Work You've Already Billed.
Non-dilutive working capital against your existing receivables. Set up in 24–48 hours, then same-day funding on every invoice. Credit insurance available. Human underwriters — not algorithms.
- 600+businesses funded
- $900M+invoices purchased
- 97%fund again
Estimate your advance
- Advance, funded the same day you submit
- $212,500
- Reserve, paid to you when your customer pays
- $37,500
- Est. fee, taken from the reserve
- −$5,875
- Total you receive
- $244,125
Estimate only. Advances run 70–97% by industry; your exact rate and fee are in your written proposal. No hard credit pull to start.
The Process
From Invoice to Funded — What Actually Happens
Real timelines, not marketing estimates. These are averages across active Sigma accounts.
- 01Day 0
Submit your application
Short online form. Business info, invoices you want to factor. No tax returns, no financial statements at this stage.
- 02Within hours
Human underwriter reviews
Your application is reviewed by experienced commercial underwriters — not an algorithm. Real answers in hours, not weeks.
- 03Same day
Advance wired to your account
We fund the advance — a large percentage of the invoice face value — directly to your operating account.
- 04When due
Customer pays, reserve released
Your customer pays Sigma when due. We release the remaining balance minus the fee. Transaction complete.
Client story
Invoices placed in the morning, funded by the afternoon
“Funding speed is incredible. I placed invoices in the morning and have the funds in my account by the afternoon.”
Tim · 3PL · North Carolina- Funding
- Same day
- Industry
- 3PL
- Location
- North Carolina
Invoice factoring client in third-party logistics. Individual results vary.
How Sigma's Factoring Works
Not Just Fast — Structured Right
Speed is table stakes. The four things that actually differentiate Sigma's factoring from every competitor.
Speed
Invoices Funded the Same Day
Onboarding typically takes 24–48 hours from signup, with a licensed underwriter reviewing your file instead of a scoring algorithm. After that, invoices you submit are funded the same day. No committee. No 7-day wait.
Risk Protection
Recourse Factoring With Optional Credit Insurance
Recourse factoring is our standard structure and costs the least. Add credit insurance to protect against a customer who doesn't pay. We don't offer non-recourse, which costs more and covers only a customer's bankruptcy or insolvency.
Underwriting
Your Customers' Credit Carries the Most Weight
We underwrite the creditworthiness of your invoice counterparties first. We review your business too, without a hard credit pull. If your customers are creditworthy businesses or government entities, your invoices likely qualify even if your own credit history is limited.
Flexibility
Factor on Your Schedule
Factor one invoice or your full A/R. New businesses can sign before their first invoice, and we generally look for growth to at least $50,000 a month in invoices. You can also factor selectively: specific customers, specific invoices, specific periods.
What's the difference between factoring and a bank loan?
Factoring is a sale of receivables — not debt. It doesn’t appear on your balance sheet, doesn’t trigger bank covenants, and is underwritten against your customers’ credit rather than yours. There’s no repayment schedule because repayment comes from your customer’s payment of the invoice.
Will my customers know I'm using factoring?
Yes. A Notice of Assignment is sent to your customers directing payment to Sigma. This is standard practice in B2B finance — your customers have almost certainly seen it before. Our team contacts them professionally on your behalf.
What's the fee structure?
A fee on each invoice, calculated on the full invoice amount from a fee schedule set by how long your customer takes to pay. It depends on your industry’s risk profile, your customer’s creditworthiness, and your invoice terms. No wire fees, no monthly minimums, no setup fees. Your exact fee is shown in full before you sign anything. Use the estimator above for a working figure.
Do you require a long-term contract?
Our standard agreement runs 12 months. That lets us invest in your account and move fast for you when it matters. If you’d rather see how we work together first, we can start with a trial period. If you expect your situation to change, for example by qualifying for a bank line of credit, raise it when we prepare your proposal. Any flexibility on term or exit is written into your agreement.
Is there a minimum monthly volume?
No minimum to get started. A new business can sign with Sigma before issuing its first invoice. Funding starts once you have an invoice for work you’ve done or goods you’ve delivered. As you grow, we generally look for at least $50,000 a month in invoices, because steady volume shows the business is viable and stable. That’s a growth expectation, not a condition of signing.
Does factoring affect my existing bank line or covenants?
Factoring is a sale of receivables — not a loan. It doesn’t appear on your balance sheet as debt. We file a UCC-1 against your receivables (standard in factoring), which is structured to coexist with most existing bank facilities. We review your agreements before onboarding.
Other Solutions Worth Knowing
- Asset-Based Lending
Larger facilities for more complex borrowers
- AR Funding
A/R-backed facility without customer notification
- DIP Financing
Working capital during Chapter 11 reorganization
See Your Advance Amount
Submit your application and get a written proposal — advance rate, fee, and exact terms — before committing to anything.
- No personal credit checks required
- No hard credit pull on your business
- Ask about a trial period