Information Technology Invoice Factoring

Accelerate your cash flow. Accelerate your growth.

Whether an IT or tech company deals with hardware, software, consulting, or other professional services, they all face the common challenge of needing cash flow to take on big projects, make payroll, or buy equipment. We understand the pressure of being in a cash crunch and working under tight timelines because we’re entrepreneurs and finance professionals ourselves. One of the biggest cost centers in the tech industry is labor, and while you wait for long payment terms from big clients, expenses like payroll still need to be met. That’s where invoice factoring for tech companies comes in, helping you get your outstanding invoices paid ahead of lengthy net terms to cover expenses and pursue growth projects.

What Is Invoice Factoring for Tech Companies?

Invoice factoring for tech companies is a form of short-term financing when you sell your outstanding invoices in exchange for a payment advance. The factoring company then works with your customer to settle the invoice according to the original payment terms. 

In a nutshell, factoring tech companies give your technology company funds in days so you don’t have to wait months on net terms. You can then put your funds to work hiring employees with specialized skills and investing in materials, applications, and other tools to serve your customers.

Technology Factoring: What Are the Benefits Compared to Other Types of Financing?

Invoice factoring for tech companies can help you get outstanding invoices paid faster, but there are so many more additional benefits of factoring you might not have thought about, including:


  • Quick access to capital. You might have hundreds of thousands – or even millions – in outstanding invoices, but they’ll take months to collect. Information technology factoring gets you funding in days. 
  • Improved cash flow management. With the steady influx of cash from factoring, you can better manage your cash flow, ensuring that you always have the necessary funds to cover operational expenses and invest in growth opportunities.
  • Flexible funding. Get funding any time you need capital on short notice. With FundThrough, you can fund the invoices you want, when you want, without minimum funding obligations, and no long-term commitment once the invoice is paid. 
  • Easy process. The great thing about IT factoring is that there’s no time-consuming paperwork – you can apply and submit an eligible invoice for funding in minutes. FundThrough uses a combination of AI, automation, and accounting integrations with popular accounting software like QuickBooks that pull eligible invoices into the platform to make the process simple. 
  • Grow your business. Get capital to go after projects that will take your business to the next level, while still meeting your day-to-day expenses.
  • No bank hassles. Banks often don’t work with new businesses, and take months to approve funding – even for something as simple as raising the limit on an established line of credit. Technology factoring gets you funding without the hassle and without delays.
  • No debt or dilution. One of the significant advantages of invoice factoring is that it doesn’t add debt to your balance sheet or dilute your equity. Unlike loans, which must be repaid with interest, factoring simply involves selling your invoices for immediate cash. This means you retain full ownership and control of your company, avoiding the pitfalls of debt and the loss of equity.

Ready to get your invoices paid early?

What to Look for in Technology Factoring Companies

When choosing a technology factoring company, it’s crucial to consider several factors to ensure you select the best partner for your business. Here are key qualifications to look for:

Experience in Your Industry. Choose a factoring company that has experience working with technology firms. Their familiarity with the industry means they understand the unique challenges and cash flow needs of tech companies, providing tailored solutions that suit your business.

Competitive Advance Rates. Look for a factoring company that offers high advance rates, ideally up to 100% of the invoice value. This ensures you get the maximum cash flow from your outstanding invoices, providing more working capital for your business.

Transparent Fees. Select a company that clearly outlines all service fees upfront, avoiding hidden costs that can accumulate over time. Transparent pricing allows you to accurately forecast expenses and ensures there are no surprises down the line.

Flexibility. A good factoring company should offer flexibility in terms of which invoices you can fund and when. This flexibility allows you to meet your cash flow needs as they arise, without being locked into long-term commitments.

Quick Funding. Ensure the company provides fast access to funds, typically within 1-2 business days. Quick funding helps you manage immediate financial obligations and seize growth opportunities without delay.

No Minimums. Opt for a factoring partner that does not require monthly minimum funding amounts, giving you the freedom to factor invoices as needed without being bound to specific volumes.

Excellent Customer Service. A responsive customer service team can make the factoring process smoother and more efficient. Look for a company that prioritizes customer support and offers personalized assistance.

Choosing the right factoring partner can significantly impact your business’s financial health and growth potential. By considering these factors, you can ensure you select a partner that aligns with your needs and supports your business goals.

Why Choose FundThrough? 

Companies in the U.S. and Canada enjoy working with FundThrough for a few key reasons:

Quick Access to Capital. With FundThrough, you can get your invoices paid in just a matter of days, providing you with the funds you need rapidly to manage expenses and invest in growth opportunities.

AI-Powered and Automated Platform. The FundThrough platform leverages advanced AI and automation features, ensuring a quick and seamless funding experience. This technology simplifies the process, making it efficient and user-friendly.

100% Advance Rates. We offer full advance rates on your invoices, meaning you receive 100% of the invoice total less our fee, maximizing your cash flow immediately.

Flexible (Spot Factoring) funding options. FundThrough’s flexible spot factoring allows you to choose which invoices to fund on an as-needed basis. This means you can get funding when you need it, without being tied to minimum volume requirements or long-term contracts.

Unlimited Funding. There are no limits on the number or amount of invoices you can fund. As long as you have eligible invoices, you can access the capital you need.

No Hidden Fees. FundThrough follows a straightforward pricing structure with a single upfront fee. Our transparent pricing ensures that you know exactly what you’re paying for, with no hidden costs.

No Long-Term Commitment After Invoice Payment. Unlike some other factoring companies, FundThrough doesn’t require long-term contracts that lock you into funding a certain amount every month. You have the freedom to fund only when you want to, providing flexibility in managing your finances.

Accounting Integrations. FundThrough offers seamless integration with popular accounting software like QuickBooks and Enverus. This allows you to pull eligible invoices directly from your accounts, simplifying the process and saving time.

Dedicated Account Support. When partnering with FundThrough, you can expect personalized support from our support team, who will assist you with every step of the funding process.

Easy Application Process. Setting up an account with FundThrough is quick and hassle-free. There’s no need for cumbersome paperwork, and you can see if you’re qualified in just a few minutes.

Factoring for US and Canada Invoices. FundThrough can fund invoices for businesses operating in both the United States and Canada, providing flexibility and support for cross-border transactions.

Streamlined Funding Process. Submitting an invoice for funding is as easy as a single click after the customer setup, simplifying the overall funding process and allowing you to focus on running your business.

Peace of Mind. Our transparent pricing and straightforward process provide you with peace of mind, knowing that there are no hidden fees or long-term commitments. You can focus on growing your business without worrying about financial uncertainties.

Ready to get your invoices paid early with FundThrough?

Case Study: How Self Care Catalysts is Funding Their Growth

Self Care Catalysts, a technology company specializing in patient-driven real-world evidence, faced the challenge of managing cash flow while dealing with slow-paying customers. Their innovative solutions were in high demand, but extended payment terms from their clients created a gap in their cash flow, making it difficult to cover operational expenses and invest in growth opportunities.

FundThrough provided Self Care Catalysts with seamless invoice factoring service. By leveraging our receivable financing solutions, Self Care Catalysts could convert their outstanding invoices into immediate cash advances. This access to cash allowed them to cover their expenses and invest in growth initiatives without waiting for their customers to pay.

“With FundThrough, we’ve been able to turn our invoices into immediate cash, which has been instrumental in managing our cash flow and fueling our growth. The process is seamless, and the team is incredibly supportive. This has allowed us to focus on our core business without worrying about cash flow gaps.” – Grace Castillo-Soyao, Founder and CEO of Self Care Catalysts

By choosing FundThrough, Self Care Catalysts gained access to the additional benefits of quick cash advances, flexible funding options, and improved customer relationships, positioning them for continued success and growth in the technology sector. Read their story.

Get your invoices paid early with FundThrough

Understanding the Technology Factoring Process

Knowing how the factoring process works will help you decide if it’s the right funding method for you and your business. It will also help you be able to better evaluate different technology factoring companies.

How IT Factoring Works at FundThrough

After our simple set up, submit invoices for funding in FundThrough without time-consuming paperwork. Here’s how it works: 

1. Create (or connect) your account. The first step in IT factoring is to create a free account or connect your QuickBooks or OpenInvoice account to FundThrough’s dashboard. Setup takes just a few minutes. After that, provide some basic information about your business to get started.

2. Select which invoice(s) to fund. You can upload into FundThrough’s online portal directly, or pull in eligible invoices from QuickBooks or OpenInvoice. We provide unlimited funding for your business based on the size of your outstanding invoices. Simply choose the invoice(s) you want to fund, and submit them in one click (after initial customer setup).

3. Get funded, then, get back to business. Upon approval, funds are deposited into your business bank account as soon as the next business day. You can then get busy putting your capital to work for growth projects, covering payroll, purchasing equipment, making strategic hires, and more.

Ready to fund your first invoice?

What Types of Companies Use Technology Factoring?

Accounts receivable factoring for information technology benefits startup tech companies and large corporations. We’ve worked with many technology companies, such as:
  • Enterprise software
  • Web developers
  • IT consultants
  • Mobile app developers.
  • Tech hardware producers
  • Software developers
  • Online marketing services
  • Manufacturers
  • Telecommunications companies

IT Factoring: Use Cases for Getting Paid in Days

IT or other tech companies might use the funds from factoring to:

  • Pay employees and suppliers
  • Purchase new equipment and supplies
  • Build new products
  • Take on large growth projects
  • Market their companies
  • Build inventory
  • Cover taxes

Invoice Financing for Tech Companies: How is it Different from Factoring?

Invoice financing is a related, but different way to leverage invoices for cash flow. With invoice financing for tech companies, you still get a cash advance against your invoice, just like you do with factoring. However, instead of your client paying their invoice to settle the advance, you repay the factoring company for the amount borrowed in regular instalments with interest. This means you have to ensure there’s enough cash in your bank account for the withdrawals and manage your accounts receivable on your own. However, it also doesn’t require customer contact, like invoice factoring does. 

Our Approach to Working with Different Industries

Simple. Intuitive. Information Technology Invoice Factoring.

Built For Your Business.

Explore fast payments with an experienced fintech

Interested in possibly embedding FundThrough in your platform? Let’s connect!