The short answer
At a glance
| Typical amounts | $5,000 to $5,000,000 at MFE; factoring size follows your open invoices |
|---|---|
| Revenue guideline | About $7,500/month for an advance; about $17,500/month for working capital or a line |
| Time in business | Often 3+ months (advance), 6+ months (working capital), 1+ year (line of credit) |
| Credit | Scores from 500 considered; lines of credit commonly about 650+ |
| Factoring fit | Real, undisputed invoices to business or government clients, usually net 30 to 90 |
| Speed | Same-day decisions are common on complete files; funding often next business day, never promised |
| Documents | 3 to 4 months of bank statements, ID, voided check, application; aging report for factoring |
| Best for | Staffing payroll, agency growth, IT hardware, security contracts, hotel renovations |
| Avoid if | Your clients dispute invoices often, or a single client is most of your revenue and pays late |
Before you apply: checklist
- Run an accounts receivable aging report
- Pull 3 to 4 months of business bank statements
- Note which clients are businesses, government or consumers
- List each client's payment terms and average days to pay
- Map your payroll dates against when clients pay
- List any existing advances or loans
- Have your ID and a voided business check ready
- Confirm none of the invoices you plan to factor are disputed
Check what your business qualifies for
Merchant Fund Express reviews professional and service business funding requests from $5,000 to $5,000,000. Scores from 500 are considered, and same-day decisions are common on complete files.
Check funding options with Merchant Fund ExpressWho this covers
This sheet covers law firms, accounting and bookkeeping firms, IT and managed service providers (MSPs), marketing agencies, staffing agencies, security companies, print shops, event venues, real estate offices, cleaning services, locksmiths, appliance repair, daycares and hotels.
They split into two groups:
- Firms that invoice businesses: staffing, IT/MSP, agencies, security guard companies, commercial cleaning, accounting. Factoring and lines of credit usually fit.
- Businesses paid at the time of service: locksmiths, appliance repair, daycares, hotels, event venues, print shops serving walk-ins. Advances and working capital loans usually fit, because there are no business invoices to factor.
Which product for which gap
| Business | Typical gap | Common fit |
|---|---|---|
| Staffing agency | Weekly payroll, clients pay net 30 to 60 | Invoice factoring |
| IT/MSP | Hardware for a new client contract | Working capital or equipment financing |
| Marketing agency | Hiring before retainers start | Line of credit |
| Security company | Guard payroll on a new contract | Invoice factoring |
| Hotel or event venue | Renovation, slow season | Working capital or advance |
| Daycare, locksmith, appliance repair | Van, equipment, staff | Advance, working capital, equipment |
Learn the mechanics in the invoice factoring guide and the business line of credit guide.
Illustrative example: a staffing agency factors invoices
Assumptions: a staffing agency has $80,000 in undisputed invoices to business clients on net 45 terms. The factor advances 85% and charges an assumed 2.5% fee on face value.
| Step | Amount |
|---|---|
| Invoices factored | $80,000 |
| Advance at 85% | $68,000 |
| Reserve held (15%) | $12,000 |
| Assumed fee at 2.5% | $2,000 |
| Reserve released after clients pay ($12,000 - $2,000) | $10,000 |
| Total received | $78,000 |
The agency covers two payroll cycles with the $68,000 now, and the cost of that timing is $2,000.
These figures are illustrations, not offers. Real terms depend on the full file review.
Funding brings customers. Is your website ready for them?
Funding usually pays for growth: more stock, staff, equipment or marketing. Make sure the customers that growth brings find a website that explains what you do and makes it easy to call, book or buy. Cheap Cheap Websites builds professional sites from $399, with Website Care at $30/month.
Red flags
- Factoring consumer invoices. Factoring is for business or government customers.
- One client making up most receivables. If that client pays late, the whole plan stalls.
- Using a daily advance to fund 60-day receivables when factoring or a line would match the timing.
- Drawing a line of credit to the limit for long-term costs like a hotel renovation.
- Stacking advances to cover payroll every month. That is a pattern to fix with a refinance or a different product.
- Counting signed contracts as cash before the work is billed.
How Merchant Fund Express handles this
Merchant Fund Express reviews professional and service businesses through its industries page. MFE offers invoice factoring for business and government receivables, lines of credit (commonly 1+ year and about 650+ credit), working capital, equipment financing and advances. Credit scores from 500 are considered, and MFE can review a refinance or buyout of an existing advance. Service is available in English and Spanish.
When your aging report and statements are ready, apply with Merchant Fund Express.
Related
Cheap Cheap Websites builds websites. It does not lend or make funding decisions. Funding is offered by our funding partner, Merchant Fund Express, and every request is subject to its review and approval. Figures on this page are illustrations, not offers. Updated October 16, 2026.