Invoice factoring converts your unpaid B2B invoices into cash within 24 hours. Instead of waiting 30, 60, or 90 days for customer payment, you sell the receivable to a factoring company at a discount and receive most of the invoice value immediately.
Invoice factoring
You sell outstanding invoices to a factoring firm, which advances 70-90% of the face value right away, then collects directly from your customer. When your customer pays, the factor releases the reserve minus its fee. No debt appears on your balance sheet because you're selling an asset, not borrowing. This matters for New Haven manufacturers supplying the Yale New Haven Health system or contractors working multi-phase projects along the Route 34 corridor, where payment cycles stretch months but payroll and materials come due weekly.
### Who Qualifies for Invoice Factoring
Factoring companies care more about your customers' creditworthiness than yours. If you invoice other businesses (not consumers) and those customers pay reliably, you can usually factor even with thin credit history or a new LLC. Trucking company factoring companies often approve owner-operators within days. We broker factoring for distributors in the Long Wharf industrial zone, freight brokers, staffing agencies, and machine shops serving aerospace suppliers in North Haven.
Invoice factoring
Companies use invoice financing to cover payroll, buy inventory, take larger orders, and smooth seasonal gaps without waiting on slow-paying clients. A Hamden-based logistics firm might factor freight invoices every Monday to fuel trucks by Tuesday. A Woodbridge print shop factors corporate orders so it can accept rush jobs without cash-flow panic. Factoring receivables turns your accounts-receivable ledger into operating capital the day you deliver.
### Applying Through Cedargrove Credit
Call (475) 324-8340 or visit 129 Church St, New Haven, CT 06510 with your aging report and a sample invoice. We'll match you to factoring companies for trucking companies, manufacturers, or service businesses depending on your industry and invoice size. Most factors want to see invoices, customer payment history, and your articles of organization. Because we're brokers, we shop multiple factoring firms to find the fastest advance rate and lowest fees for your situation.
A Branford beverage distributor delivers to restaurants across New Haven County every Thursday but doesn't get paid until the end of each month. Rent, driver wages, and supplier COD terms all hit mid-month. By factoring invoices the day after delivery, the owner converts receivables into cash before the weekend, keeping trucks rolling and warehouse staff paid without tapping a business line of credit or deferring equipment financing payments.
For other funding options across our New Haven service area, explore working capital loans or review all programs on our New Haven commercial loans hub.
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