Most factoring companies have simple qualification criteria for wholesalers and distributors, including:
- B2B (business-to-business) invoices with creditworthy customers.
- Unpaid invoices with net terms of 30+ days.
- A business that is free of liens or can obtain lien subordination.
- Consistent invoicing with verifiable transactions.
Factoring is ideal for startups, growing businesses, and companies with cash flow gaps, as approval is based more on customer creditworthiness than the business's credit history.
