Compare · invoice factoring
Invoice factoring vs a working-capital line
Invoice factoring vs a revolving working-capital line or unsecured business loan: cost, customer contact, control and when each works for cash-flow gaps.
Factoring turns unpaid invoices into cash by selling them to a factor, who usually collects from your customers. A working-capital line lends against your business's overall cash flow and you keep control of collections.
Both solve cash-flow timing; they differ in cost structure, customer experience and how far they scale.
| Invoice factoring | Westford working-capital line | |
|---|---|---|
| Based on | Individual invoices | Business cash flow |
| Customer contact | Factor often collects | You collect |
| Cost basis | Discount per invoice | Interest on drawn balance (see rate sheet) |
| Collateral | The invoices | Unsecured options available |
Factoring may fit
- Early-stage businesses with creditworthy customers but thin financials
- Very fast one-off liquidity against specific invoices
- You are comfortable with a third party contacting customers
A working-capital line may fit
- Established businesses wanting to keep customer relationships in-house
- Recurring seasonal needs — draw, repay, redraw
- Unsecured lines up to USD 2.5M for qualifying businesses
Next steps: check the eligibility checker, review indicative rates, run the calculator or apply. Prefer to talk? Call +1 (302) 579-5439 or book a deal officer.
Indicative information only; not an offer of credit. All facilities are subject to credit approval, KYC and documentation.
People also ask
Is factoring a loan?
Usually not — it is a sale of receivables. A working-capital line is a loan facility you draw and repay.
Which is cheaper?
It depends on invoice terms and usage. Compare the effective annual cost of factoring discounts with the indicative ranges on our rate sheet.
Can I switch from factoring to a line?
Often yes, once the business has trading history and financials. The line can refinance the factoring facility.
How fast can a line be set up?
For facilities under USD 10 million with complete documents, Westford typically closes in less than 14 days. Larger or project-level facilities follow a diligence timetable agreed up front.
USD 1M+ facilities
Senior desk hours — Asheville & Dubai
Asheville, NC desk (HQ)
Mon–Fri 8 AM–5 PM local
Dubai desk · Business Bay – Bay Square
Mon–Fri 8 AM–5 PM local
Call +1 (302) 579-5439 or WhatsApp, or hold a 45-minute deal-officer slot below.
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