Invoice factoring vs Revenue-based advance: which one fits?

Both move future money into today. Factoring is tied to a specific invoice you have already earned; an advance is tied to revenue you have not earned yet. That difference drives a large gap in cost.

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Side by side

The differences that actually cost money.

	Invoice factoring	Revenue-based advance
What backs it	An issued invoice to a business customer	Projected future sales
Cost	Lower — 1–4% per 30 days typically	Higher — factor rates on the whole amount
Speed	24–48 hours	Same day – 48 hours
Own credit	Barely relevant	500+
Availability	Grows with your invoicing	Capped by monthly deposits
Requires B2B invoices	Yes	No

Ranges are typical outcomes across our lender network, not quotes. Your file sets the real terms.

Choose invoice factoring when

Invoice factoring is the right call

You invoice other businesses
You want the cheaper of the two
Your funding should scale with sales

Invoice factoring details

Choose revenue-based advance when

Revenue-based advance is the right call

You sell to consumers or take cards
There are no invoices to sell
Speed outweighs cost today

Revenue-based advance details

Our verdict

What we would tell you on the phone.

If you have B2B invoices, factoring almost always beats an advance on cost. The advance exists for businesses without receivables — restaurants, retail, services paid at point of sale.

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Comparison questions

What people ask next.

Sometimes, but factors usually require first position on receivables. Disclose an existing advance up front; hiding it kills files at the last minute.

Factoring is a sale, so it generally does not sit on the balance sheet as debt. Advances typically do, and future lenders will see the remittance in your statements either way.

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When your bank says no. We find who says yes.

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Funding programs

Invoice factoring vs Revenue-based advance: which one fits?

The differences that actually cost money.

Invoice factoring is the right call

Revenue-based advance is the right call

What we would tell you on the phone.

What people ask next.

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When your bank says no. We find who says yes.