It is simpler to get approval for invoice funding than most other types of business loans. Any small business with a business-to-business (B2B) model can qualify if it currently has outstanding invoices.
Many of the requirements to get approved will depend on the lender. That said, invoice financing companies will concentrate on the quality of your accounts receivable and your clients’ payment history.
Traditional loan guidelines may not come into play as much with invoice financing or factoring, but it’s probable Lenders will still look at traditional metrics like your credit score, the history of your business and annual revenue. Of course, the better your numbers look, the higher the chances are you’ll be approved with the most competitive rates and terms.
