How It Works: Get Funded in 3 Simple Steps
Invoice factoring converts your approved B2B invoices into same-day working capital. Apply once, submit ongoing, and get funded within 24 hours — no debt, no credit check, no long wait.
- 1Apply & Onboard — free setup in under 10 minutes, account active in 24–48 hours.
- 2Submit Invoices — upload any approved B2B invoice and supporting documentation.
- 3Get Funded — 80%–95% advances via ACH or wire the same business day.
Get Your Instant Factoring Quote
Executive Summary: The Factoring Process Explained
Setup speed: Your IFXI account is active within 24–48 hours of a complete application. A UCC-1 lien is filed on your accounts receivable as part of standard onboarding. The first invoice advances within 24 hours of account activation.
Funding mechanics: IFXI advances 80%–95% of eligible invoice face value via ACH or wire. The remaining reserve is held until your customer pays IFXI directly, at which point it is released to your account minus the 1%–3% factoring fee.
Collections ownership: Under IFXI's notification factoring structure, your customer is informed of the assignment and remits payment directly to IFXI. IFXI manages the remittance collection; you manage the customer relationship.
Our Step-by-Step Factoring Process
Step 1: Onboarding & Account Setup
24–48 HoursComplete the free online application — under 10 minutes. IFXI reviews your business and your customers' credit profiles (not your personal credit). Once approved, a UCC-1 financing statement is filed against your accounts receivable and a Notice of Assignment template is prepared for your debtors.
- ✓Free application — no hard pull on owner credit
- ✓Customer (debtor) credit review conducted at setup
- ✓UCC-1 filing on AR is standard — not a lien on other assets
- ✓Notice of Assignment sent to customers informing them of payment redirect
Step 2: Service Delivery & Invoice Your Client
Your Normal Billing CycleDeliver your service or product. Invoice your client as normal. For freight: attach the rate confirmation and signed BOL. For staffing: include approved timesheets. For construction: submit the AIA G702/G703 pay application. Supporting documentation requirements vary by industry.
- ✓Invoice must be for completed, delivered services or goods
- ✓Supporting docs: BOL (freight), timesheets (staffing), pay apps (construction)
- ✓Invoice must be undisputed and current — not past 90 days
- ✓B2B invoices only — consumer billing is ineligible
Step 3: Verification & 24-Hour Cash Advance
Within 24 Hours of SubmissionUpload the invoice and supporting documents to the IFXI portal before the 11:00 AM EST daily cutoff. IFXI verifies invoice validity, confirms the debtor's credit, and processes the disbursement. 80%–95% of the invoice face value is sent via ACH or wire the same business day.
- ✓Submit before 11:00 AM EST for same-day ACH or wire
- ✓IFXI verifies: invoice validity, debtor credit, document completeness
- ✓Advance of 80%–95% disbursed — same-day for active accounts
- ✓Remaining 5%–20% reserve held pending customer payment
Step 4: Customer Settlement & Reserve Rebate
After Customer PaysWhen the invoice comes due, your customer pays IFXI directly (per the Notice of Assignment). After the payment clears, IFXI releases the reserve minus the factoring fee to your account. No surprise deductions — the fee was disclosed at the time of advance.
- ✓Customer remits payment directly to IFXI — no action needed from you
- ✓Reserve released within 1–2 business days of payment clearance
- ✓Factoring fee of 1%–3% deducted from reserve — disclosed upfront
- ✓Under recourse: if customer defaults, buyback obligation applies
The Flow of Capital: Factoring vs. Traditional Billing
| Stage | With IFXI Factoring | Traditional Net-30/60/90 Billing |
|---|---|---|
| Invoice Issued | Day 0 — Invoice submitted to IFXI | Day 0 — Invoice sent to customer AP queue |
| Cash Received | Day 0–1 — 80%–95% advance via ACH/wire | Day 30 / 60 / 90 — Customer pays on terms |
| Full Payment Cleared | Customer pays IFXI — reserve released within 1–2 days | Full amount to you — minus nothing (no factoring fee) |
| Cost of Wait | 1%–3% factoring fee on invoice face value | Opportunity cost of 30–90 days with zero cash in hand |
| Debt Added? | No — receivable sale, not a loan | No — but also no cash until the customer pays |
Funding Cutoff Times & Service Level Agreements
⏰ Daily Funding Cutoffs
- Same-Day ACH: Submit by 11:00 AM EST — settles same business day
- Same-Day Wire: Submit by 11:00 AM EST — wire confirmation same afternoon
- Next-Day Processing: Submissions after 11:00 AM EST fund the following business day
- Weekend/Holiday: Submissions received on non-business days process on the next business day
📋 Document Verification Windows
- First-Time Setup: Account activation within 24–48 hours from complete application
- Debtor Credit Review: Completed within the setup window — no action required by you
- Invoice Verification: Completed same-day for clean, complete submissions
- Missing Docs: Funding held until complete — submit all required docs in one upload
📬 Reserve Release Timeline
- Customer Payment Received: Reserve processing begins immediately
- ACH Clearance: Reserve released within 1–2 business days of ACH confirmation
- Wire Clearance: Reserve released within 1 business day of wire confirmation
- Reserve Deduction: Factoring fee deducted at release — same amount disclosed at advance time
Transparent Working Capital With IFXI
No Application, Exit, or Hidden Fees
IFXI charges exactly one fee: the factoring fee of 1%–3% of invoice face value, disclosed upfront at advance time. No application fee to start, no termination fee to leave, no monthly minimum buried in the fine print.
Same-Day Cash, Not Same-Day Promises
Invoices submitted before the 11:00 AM EST daily cutoff reach your account via ACH or wire before close of business — not the next morning. For active accounts, every business day is a funding day.
Dedicated Account Manager From Day One
Every IFXI client is assigned one US-based account manager who handles your industry vertical and knows your invoice cycle. Questions go to a person who knows your file — not a support queue.
Common Questions About the Factoring Process
Under IFXI’s notification factoring arrangement, your clients pay IFXI directly. When your invoice is factored, a Notice of Assignment is issued to your customer informing them that payment should be remitted to IFXI’s payment address. You continue managing the customer relationship; IFXI handles the remittance collection on the factored invoice.
The short answer is the invoice itself plus industry-specific supporting documentation. For freight: a signed rate confirmation and signed bill of lading (BOL). For staffing: approved timesheets. For construction: an AIA G702/G703 pay application. For general B2B services: the invoice and any purchase order or service agreement. Missing documentation is the most common reason for a funding delay.
Yes — IFXI supports multi-debtor portfolios. You can submit invoices from multiple commercial customers in a single submission cycle. Each debtor is evaluated independently for credit quality, which means some customers in your portfolio may earn better advance rates or qualify for non-recourse coverage than others.
Ready to accelerate your cash flow?
Fill out the instant quote form at the top of the page to get started, or call us directly. No obligation. No long-term contracts.