It’s no secret—many new businesses struggle with cash flow in the first year. Even with strong customer demand, it can take months to stabilize revenue and waiting 30–60 days to get paid on invoices can put your operations at risk.

That’s where invoice factoring comes in.

Whether you’re a startup staffing agency, trucking business, a consultant, or a supplier—factoring can help you unlock the cash you need, without debt or dilution.

What Is Invoice Factoring?

Invoice factoring allows you to turn unpaid invoices into immediate cash. Instead of waiting for your customers to pay, a factoring company like Catamount Funding advances a percentage of the invoice (often up to 85%) and sends you the rest once your client pays.

It’s fast, flexible, and perfect for young businesses that need working capital to grow.

Yes, You Can Factor Even If Your Business Is New

One of the biggest misconceptions is that a business needs years of history or strong credit to qualify for factoring. That’s simply not true.

Factoring is based on your customers’ creditworthiness—not yours.

If you invoice other businesses or government entities, and they have good payment histories, you can qualify for factoring—even if your business is brand new.

Why Startups Use Factoring

Keep Cash Flow Consistent

Startups often face delays in payment while still having to cover payroll, rent, supplies, or contractors. Factoring bridges the gap between delivery and payment, so you can operate without the cash crunch.

Avoid Taking on Debt

Unlike a loan, factoring doesn’t show up as debt on your balance sheet. That’s a big win if you’re trying to keep your financials clean for future funding or growth.

Fund Growth, Not Just Survival

With reliable cash on hand, you can invest in marketing, equipment, or staffing—without waiting for customer payments to come through.

Deal with Slow-Paying Customers

You’ve done the work. Why wait 30, 60, or even 90 days to get paid? Factoring accelerates the timeline and removes stress.