You did the work. You sent the invoice. Your customer will pay in sixty days, and your payroll is due on Friday. Invoice factoring exists for exactly this gap, and fundivi invoice factoring describes it as the cleanest way to bridge the gap between work delivered and cash received. This guide follows a single invoice from the day it is issued to the day the last dollar is settled, and it is candid about timing, because the factoring page gives two different answers about how fast the process runs.
To see whether your receivables qualify, start a prequalification. It is a soft inquiry and takes about three minutes.
Same Day Funding: The Honest Timing Question
On the factoring page, the header says decision in hours and wired same day. The at a glance table says one to two weeks. The sample application shows same business day. All three can be true, because they describe different moments.
- First time setup: What it means: Underwriting your customers, AR aging, contracts and agreements; Reasonable expectation: Plan on days up to about two weeks
- First funded invoice: What it means: The first advance after setup; Reasonable expectation: Can be quick once approved
- Later invoices: What it means: New invoices against an open facility; Reasonable expectation: Typically much faster, since the customer is already approved
If you need money tomorrow and have never factored, factoring probably will not be the fastest tool. If you set it up now, it can be the fastest tool every week after. For same day cash today, working capital or a merchant cash advance is the better choice.
An Invoice's Life in Five Stages
Stage 1: The invoice is issued
You deliver the work or goods and issue an invoice to a business customer on net 30, 60 or 90 terms. Only B2B and B2G receivables qualify. Invoices to consumers do not.
Stage 2: fundivi advances a percentage
fundivi advances a percentage of the invoice's face value. The product page does not publish the percentage, so ask for it in writing. For illustration only, the table below assumes 85 percent. That figure is a hypothetical, not a fundivi term.
Stage 3: Your customer pays fundivi
At maturity, your customer pays the invoice directly to fundivi. In a notification structure the customer knows. fundivi says it works with both notification and non notification structures, so ask which one applies to you.
Stage 4: The remainder is released
When the invoice is paid, fundivi sends you the remaining balance, minus the factor fee.
Stage 5: Repeat
The facility revolves, tied to invoice aging. As invoices are paid, new ones can be advanced.
The Math on a $50,000 Invoice (Hypothetical)
This is an illustration using made up assumptions: an 85 percent advance and a 3 percent factor fee. Real terms will differ. Ask fundivi for the actual advance percentage and fee schedule.
- Invoice face value: $50,000
- Advance at 85 percent (hypothetical): $42,500
- Held back until your customer pays: $7,500
- Factor fee at 3 percent (hypothetical): $1,500
- Released to you after the customer pays: $6,000
- Total received: $48,500
Under these made up numbers, you get $42,500 right away and $6,000 later, and the cost of getting paid sixty days early is $1,500. Whether that is worth it depends on what the early cash does for you. If it lets you take a $20,000 job you would otherwise turn down, it is cheap. If it only lets you avoid waiting, it may not be. Use the cost calculator and get the real fee structure before deciding.
Who Factoring Fits
The product page names staffing firms, manufacturers, transportation companies, government contractors and wholesale distributors. These businesses have two things in common: customers who pay slowly, and a need to pay their own costs now.
- Staffing firm: The gap: Weekly payroll, customers pay in 45 to 60 days; Why factoring fits: Cash funds payroll while invoices age
- Manufacturer: The gap: Materials and labor up front, retailer pays net 60; Why factoring fits: Turns finished orders into working cash
- Trucking company: The gap: Fuel and drivers daily, brokers pay in 30 to 45; Why factoring fits: Smooths a constant cash cycle
- Government contractor: The gap: Agencies pay slowly, costs are immediate; Why factoring fits: Government payers are strong credits
- Wholesale distributor: The gap: Inventory bought now, retailers pay later; Why factoring fits: Funds the next purchase order
The Requirements That Decide Everything
The product page lists these.
- B2B or B2G receivables only
- At least $50,000 in monthly invoice volume
- Customers with verifiable commercial credit
- Three months of accounts receivable aging reports
- Sample invoices and customer contracts
- A copy of your driver's license
- Four to six documents in total
The big difference from other products is who is judged. The page says underwriting is anchored to the credit quality of your customers. That makes it accessible to younger or thinner file companies that may not qualify for a term loan. A young business with a Fortune 500 customer may be a better factoring candidate than a veteran with a weak customer base.
Getting Your File Ready for Speed
- Run an accounts receivable aging report that shows every open invoice by customer and age.
- Identify your best customers by payment history and credit.
- Collect sample invoices and the contracts that support them.
- Identify any existing liens on receivables, since a prior lender may have a claim.
- Decide whether you prefer notification or non notification and explain why.
- Be ready to discuss concentration. If one customer is most of your volume, expect questions.
Two Questions the Page Leaves Open
The factoring FAQ lists topics but does not publish answers, so press for these before signing.
Recourse. If your customer does not pay, who bears the loss? In recourse factoring, you do. In non recourse, the factor does, subject to conditions. The page does not say which fundivi offers.
Minimum volume. Some factoring arrangements require a minimum volume or a term commitment. The page says most relationships scale with your volume rather than capping at a fixed loan amount, but ask whether any minimum applies and what happens if your volume drops.
Streamlined Application for Receivables
The first screen is the same short form as every fundivi product. For factoring you then add AR aging, sample invoices and contracts, and the review concentrates on your customers. The underwriting engine still reads your bank activity to see how receivables turn into deposits. The four stages are on the how it works page, and a consultation helps if your customer list needs explaining.
Hybrid Funding Model: Plan B for Smaller Receivables
Under $50,000 in monthly invoices, or with a customer that is hard to verify, the direct factoring facility may not fit. fundivi reviews once and, if needed, passes the same application to a vetted lending partner with no resubmission. Often the practical result is working capital now, factoring later when volume grows.
Best Rated Evidence for Receivables Clients
- Is the company independently listed?: BBB Business Review seal for fundivi Inc. in Brooklyn, New York
- Are rules published?: Yes, including a note that underwriting depends on customer credit
- Can customers stay unaware?: Notification and non notification structures are both offered
- Are fees disclosed?: Written terms with itemized fees
- Can I talk to a person?: A consultation option
fundivi publishes no star ratings, so none appear here. Ask for a sample agreement and read the recourse, reserve, fee and termination sections.
A Worked Example: The Staffing Firm
A staffing firm places temporary workers with six commercial clients. Weekly payroll is about $38,000. Clients pay on net 45 terms, and the firm bills roughly $160,000 a month, well above the $50,000 invoice volume the product page lists as a minimum. Without factoring, the owner must front about six weeks of payroll, or roughly $230,000, before the first invoice from a new contract is paid. That is why many staffing firms stall at a certain size: growth requires more cash than the business has.
With a factoring facility, each weekly invoice is submitted as it is issued. The firm receives an advance within a short time, uses it to meet payroll and receives the balance, minus the fee, when the client pays. Underwriting does not depend on the firm's own credit alone. It depends on whether the six clients are reliable payers, and the firm can tell a strong story if they are established companies.
The tradeoffs are clear too. The firm pays a fee on every invoice, which reduces margin. Customer concentration matters if two clients account for most of the billings. And recourse terms decide what happens if a client goes bankrupt. The owner who has read the sample agreement and run the cost calculator across several scenarios knows the real price of growth before accepting it.
Seven Mistakes That Make Factoring Slower or Costlier
- Waiting until payroll is due tomorrow to start, since setup is the slow part.
- Not knowing which invoices are already pledged to another lender.
- Submitting invoices to customers with poor commercial credit.
- Failing to reconcile the AR aging report with the books.
- Ignoring the contract language on recourse and termination.
- Factoring invoices that were already disputed by the customer.
- Treating factoring as a permanent crutch instead of a way to grow into a stronger balance sheet.
The best time to set up factoring is when you do not urgently need it. A facility that sits open and ready is worth far more than one scrambled together in a crisis.
Factoring or Something Else?
- You need cash today, you have no factoring facility: Working capital
- One big invoice is the only gap: Bridge capital against that receivable
- The need is a machine: Equipment financing
- The need is flexible and recurring: Line of credit
- You want a fixed monthly payment: Term loan
The funding product matcher can sort this in a few questions, and the resources library has more. Learn about the team on the about page.
Factoring Questions Worth Asking
1. How fast can I get paid on an invoice?
Once your facility is set up and your customer is approved, new invoices can be advanced quickly. First time setup is the slow part, because underwriting reviews your customers, AR aging reports, invoices and contracts, and the product page lists one to two weeks at a glance even though its header says decision in hours. The best way to be fast later is to set the facility up before you urgently need it.
2. What is the funding range?
$25,000 to $10,000,000, revolving and tied to invoice aging. Most relationships scale with your volume instead of capping at a fixed loan amount, which is how factoring differs from a term loan. As your invoicing grows, the available funding grows with it, as long as your customers remain creditworthy.
3. What percentage of the invoice do I receive up front?
fundivi advances a percentage of each invoice's face value, but the product page does not publish the number. Ask for it in your offer and also ask how the remainder is held and released. The remaining balance is paid to you when your customer pays, minus the factor fee, so the advance rate and fee together determine your real cost.
4. What does it cost?
Settlement is made minus the factor fee, and the page does not publish the fee. Request a complete fee schedule in writing, covering the factor fee, any setup or service charges, how the fee changes if invoices age past a certain point and any minimums. Then use the cost calculator to compare the total against the value of getting cash sooner.
5. Will my customers know?
fundivi works with both notification and non notification structures. In a notification arrangement, your customer is told to pay fundivi directly. In a non notification arrangement, the process is less visible to the customer. Ask which structure applies to you, because it affects customer relationships and how payments are directed.
6. What is recourse?
Recourse means you are responsible if your customer does not pay. In non recourse factoring, the factor bears some of the credit loss, usually under conditions. The product page lists the question but does not say which fundivi offers, so ask directly and read the contract language on non payment, disputes and chargebacks.
7. What invoices qualify?
B2B and B2G invoices only, to customers with verifiable commercial credit. Consumer invoices do not qualify. Disputed invoices, invoices already pledged to another lender and invoices to customers with poor credit are typically excluded or reduce what can be advanced.
8. How much invoice volume do I need?
At least $50,000 per month in invoices. Below that, the direct facility may not fit, but a vetted lending partner or a product such as working capital may. The page also asks about minimum volume commitments, so ask whether any minimum applies and what happens if your volume drops.
9. Do I need good credit?
Underwriting is anchored to the credit quality of your customers more than your own. That makes factoring accessible to younger or thin file companies that might not qualify for a term loan. Your own file still matters, but a strong customer base can carry it.
10. What documents do I need?
Three months of AR aging reports, sample invoices and customer contracts, and a copy of your driver's license, for four to six documents in total. Reconcile your AR aging report with your books before submitting, since mismatches create delays.
11. Can I factor only some invoices?
Ask whether the facility allows selected invoices or requires your full ledger. Selective factoring gives you more control and can reduce cost, but some arrangements require submitting all or most invoices. The answer shapes your cash flow planning.
12. Can I use factoring and working capital together?
Often yes. Many owners use working capital for immediate needs while a factoring facility is set up. Your total obligations are reviewed, so disclose both, and check that the combined repayments leave room for operating costs.
13. What if I do not qualify?
You can be routed to a vetted lending partner without resubmission, or consider working capital or bridge capital. Reasons for a decline often point to the fix, such as growing invoice volume, improving customer mix or clearing prior liens on receivables.
Approval is not guaranteed. Terms vary by borrower and customer credit. The invoice example uses hypothetical numbers and is not an offer.
