Questions about factoring, answered clearly.

Accounts receivable factoring is when a business sells its outstanding invoices to a funding partner in exchange for immediate cash. Unlike traditional loans, approval is based primarily on your customers’ credit strength, not your financial history.
Here is how it works at a high level:

• You perform a service or deliver a product.
• You issue an invoice to your customer.
• Mōmentum advances up to 90 percent of the invoice value.
• When your customer pays, you receive the remaining balance, minus a transparent fee.

No.

Invoice factoring is not a loan and does not create traditional debt. There are no fixed monthly payments, no compounding interest, and no long-term repayment schedules.

Many clients are approved within days, and verified invoices can often be funded the same day. Timing depends on the customer, invoice details, and how quickly verification is completed.

Factoring may be a fit if:

• You issue invoices to creditworthy commercial customers
• You operate on 30 to 90 day payment terms
• You need consistent working capital to support growth
• You want flexibility without adding traditional debt

Many firms offer invoice factoring. Not all offer a partnership.
At Mōmentum, we take the time to understand:

• How your cash cycle works
• Who your customers are
• Where you are headed
• What growth looks like over the next 12 to 24 months

Because factoring isn’t one size fits all. Rates vary based on your specific situation, and a number online would be misleading without understanding:

• Your customers
• Your invoice volume
• Your average days to payment
• Your growth trajectory
• The complexity of your contracts