Invoice Factoring

Get immediate cash for your invoices.

Harness invoice factoring to get cash for payroll, expenses, materials and equipment in as fast as 48 hours.

Benefits of working with
Cultiva Financial.

Invoice Factoring Guide: What is it and how does it work?

What is invoice factoring?

Invoice factoring, also known as accounts receivable financing, is a financial service that allows you to convert your outstanding invoices into immediate cash.

With this service you are selling some or all of your invoices to an invoice factoring company in exchange for funding to buy the materials you need, cover payroll and any other expenses.

Unlike traditional financing, invoice factoring bases approvals primarily on the strength of the business you are invoicing, and not your personal credit, allowing for faster and more flexible funding.

How invoice factoring works

Each factoring company in Texas works a little differently, but at Cultiva Financial, we pride ourselves on offering a simple and transparent factoring process.


Complete a factoring application

Complete our invoice factoring application which will provide us information about yourself and your business.


Send a valid invoice

After your application has been approved, send a valid invoice to an invoice factoring company like Cultiva Financial.


Get the funding advance

Cultiva Financial will then purchase this invoice as an asset and provide you between 70-90% of the face value immediately to cover your expenses.


Collect final payment

When your client pays the invoice, we pay you the remaining balance, minus our factoring fee, which ranges between 3-5% of the face value of the invoice.

Is Invoice Factoring right for your small business?

Invoice factoring can be a great solution for small businesses who need fast access to capital and have limited access to traditional financing. Here are few of the main reasons people choose invoice factoring:

Slow Paying Clients

Many small businesses, and especially construction companies, struggle with cash flow because of long invoice payment timelines. Invoice Factoring can help bridge the gap and provide funds when you need them most.

Limited Access to Financing:

Just because the bank said no, doesn’t mean you can’t get cash for your business.  Whether you only have an ITIN, have a challenged credit history, or are just starting a new business, invoice factoring can be a great option to help you get cash for your business.

Need Cash Fast

Even if you have access to traditional financing, sometimes you need cash faster than a bank can process paperwork.  Payroll coming this Friday?  Need to purchase materials before a job can start this week?  Invoice factoring approvals can be a few days or even hours instead of weeks like traditional loans, helping you cover expenses ASAP.

How to apply and qualify for invoice factoring?

Complete a Credit Application

Fill out our online credit application to get started.  The process takes less than 10 minutes and will provide information about yourself and your business.

Proof of Identification

At Cultiva Financial you need to provide a copy of a valid photo ID including but not limited to Drivers License and Passports. The underwriting team will reach out directly for these if you pre-qualify.

6 months of Bank Statements

Bank statements provide insight into your companies cash flow and verify that your business is qualified to move forward with funding.  The underwriting team will reach out for these directly and they can be downloaded from your bank online in PDF form and emailed.

A Valid Invoice

You will need at least 1 invoice from a valid client with a contract to apply for invoice factoring.  You can pick and choose which invoices you factor.

Here's what some of our customers are saying.

Cultiva Financial provided me the cash flow and helped with payroll to grow my business. Now, big businesses are more willing to work with me because I have the capital and workforce to keep meeting their needs and projects.
Jose Chairez
Kerch Services
I would recommend Cultiva Financial to other companies because it will give you the possibility to expand your business and run it in the proper way. They are very easy to work with because they understand the business.
Billy Ward
Comal Creek Construction

How much does invoice factoring cost?

At Cultiva Financial, the factoring rates range between 2-5% of the face value of your invoice. The better the business strength of your client, the lower the fee.If the invoice is overdue and it takes more than 30 days to be paid, 1.25% are added for every extra week, but this can vary between industries and credits. The specific cost of each product will be susceptible to each industry, volume, and the financial strengths of the clients and debtors.

How are factor rates determined?

We determine the factor rate based on a combination of industry, volume, and the financial strengths of the clients and debtors.

Are there any additional fees?

Different business factoring companies can have additional fees for their services. However, at Cultiva Financial there are no extra fees apart from the ones presented above.

Example invoice factoring deal

Let’s imagine you’re a construction contractor that has just finished work on a new building.

You send an invoice for $10,000 to your client or GC and expect to be paid by in 30 days. Suddenly, a new job opportunity arises, but you need cash to cover payroll and materials for the new job. You sell or factor your invoice with Cultiva Financial and we provide up to $7,000 immediately for you to cover those costs.

When 30 days arrives, you’re client pays the invoice, and we pay you $2,500, the remaining balance minus our 5% factoring fee.

Things to consider before selecting the best invoice factoring company for your business

With so many factoring companies to choose from, here are some important questions to ask before working with a funding partner.

Do they factor my industry?

Many factoring companies specialize in specific industries like trucking, shipping, construction, etc. Make sure the factoring company has experience in your industry and will work with your invoices.

Do I get to choose what invoices I factor?

Some factoring companies require you to factor all of your invoices and offer little to no flexibility.  Others, like Cultiva Financial allow you to factor whatever invoices you choose.

Will they work my credit history?

If you have challenged credit, operate with an ITIN, or have little to no business history, it can be hard to qualify for any financing.  Make sure your factoring company can work with your situation to ensure that an honest partnership can be formed.

Will they allow me to be paid directly?

Most factoring companies require that your Client pay their factoring company directly. For many smaller contractors and businesses, this jeopardizes their contract since some GC’s don’t want to work with factoring companies directly.  At Cultiva Financial, some clients may qualify to be paid directly so that there are no challenges or interruptions in the contract flow.  This decision is determined by underwriting and is not available to all customers.

Invoice Factoring: Advantages and Disadvantages


Fast cash advances:

Almost the entire amount of your invoices will be paid in advance. You don’t have to wait for your projects to be paid before starting planning for the next ones.

Better chances of growing your business:

You can rest easy knowing your business has better chances of succeeding because you will always have the option of getting working capital when needed.

More Flexible than a Loan:

Since factoring is a short-term funding resource, applying only takes a few days and it is easier to get approved compared to a traditional bank. Funding is predominantly based on your clients business strength, providing for more flexibility.

No additional collateral Required:

Factoring is based on your invoices so there is no need for a collateral asset


For business use only:

Invoice Factoring from Cultiva Financial only works if the invoices presented come from another business. Contracts with individuals are not accepted when requesting factoring services.

Not for companies who get paid fast:

Factoring is designed for businesses that get paid on timelines of 30 days or more. If a business gets paid for its services on a day-to-day basis, factoring may not be convenient.

Not a long term solution:

Factoring is a great funding option when other financing is unavailable, but due to its cost, it is typically not the best financial option for funding over very long periods of time.


How quickly can I get paid with invoice factoring?

How is Invoice Factoring Different from a Bank Loan?

How is Invoice Factoring different from Invoice Financing?

What is the difference between Recourse Factoring and Non-recourse factoring?

What’s included in the factoring agreement?

Visit Us in San Antonio, Texas


Cultiva Financial
103 Biltmore Street, Suite 210
San Antonio, TX 78213, United States

Working Hours

Sun:   Closed
Mon:  9:00 AM – 5:00 PM
Tue:   9:00 AM – 5:00 PM
Wed:  9:00 AM – 5:00 PM
Thu:   9:00 AM – 5:00 PM
Fri:     9:00 AM – 5:00 PM
Sat:    Closed

Phone Number

(210) 777-1373

Driving Directions

Cultiva Financial’s San Antonio location can be found on the north west corner of the intersection between Loop 410 and Blanco Road.  To access our location you need to be heading west on the access road of 410, past Blanco and will turn on Biltmore Road.  You will see our building on the left and once you arrive, head inside and immediately upstairs to find our office. You will know if you are in the right area if you see Guajillo’s The Shortcut to Mexico and Kobe Steakhouse.

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