Real Estate Invoice Factoring

Accelerate cash flow for your B2B real estate company

Significant amounts of money can change hands with each commercial real estate transaction.  But all too often, the time between negotiation and getting paid can be many months, stifling cash flow and preventing you from taking on larger clients and growing your business. 

Market risk and volatility, affordability, and delays in new construction can make it challenging to take your B2B or commercial business to the next level. Real estate invoice or accounts receivable factoring solves cash flow challenges.

What Is Real Estate Factoring?

It’s a well-known fact that businesses need access to cash. This is especially true in the real estate industry. If you’re a commercial broker or real estate agent working with businesses, it can be difficult to promote your business, add new customers, or earn commissions with limited cash flow.

Real estate factoring is a source of short-term funding that solves cash flow issues. By selling one or more unpaid business invoices to a factoring company, like FundThrough, you get the cash you need (minus a small factoring fee) ahead of 30, 60, or 90 day payment terms, and your customer pays FundThrough—to improve liquidity without adding new debt.

Why Consider Real Estate Business Factoring?

When your customers are late paying, the less cash you have on hand to make payroll, manage rent payments, pay off other debt, taxes, and grow your business. Factoring your accounts receivable gives you cash ahead of long payment terms, speeding up your cash flow. 

Plus, qualifying for real estate financing of your outstanding receivables isn’t based on your personal credit score or history. Factoring instead looks at your creditworthy customers. And, unlike many banking institutions, factoring offers quick approvals and an online application process. 

Real estate factoring is not an asset-based loan. It doesn’t look at your B2B business reputation, business success, your business bank statements, business assets, or business model. Rather, it is a real estate financing option for B2B companies with limited cash flow or cash flow variability—without adding additional credit risk.

Is Factoring Invoices a Good Idea For Your Commercial Real Estate Business?

The resounding answer is yes. Invoice factoring of your outstanding invoices and real estate can work together. Here’s why:

Business owners need fast funding to take on new clients. Business opportunities and long term contracts often can’t wait until you have the cash flow to fund expenses. Invoice factoring lets you take advantage of new prospects instead of missing out.

Your business is somewhat seasonal.  In some areas of the country, the real estate market slows down during certain times of the year. That can mean you’re crunched for cash. Unpaid invoices from slow paying customers can make cash flow issues even worse. Invoice factoring provides the cash you need during down times. 

Clients are chronically slow-paying. When you’re growing your real estate business, it can be difficult to turn down business, even when clients take 30, 60 or 90 days to pay their outstanding invoices. Real estate invoice factoring can take the worry out of when you’ll be paid.

You need immediate cash. If an emergency cripples your business, even for a short time, you need to know you have the liquidity to survive.  But if your accounts receivables are tied up, you can’t always access the cash or working capital you need. In an emergency, invoice factoring can provide the cash you need fast.

How Does Real Estate Business Factoring Compare With Other Kinds of Business Financing?

In the past, factoring was largely misunderstood. Business bank loans and lines of credit were the traditional and accepted forms of financing, along with credit cards. Each of these different funding options have pros and cons to consider.


Costs for a new or growing real estate business can be significant. You may need to purchase equipment and inventory, pay employees, and keep up with rent, taxes, and marketing. You may consider taking out a traditional loan.


  • Many commercial real estate business loans have relatively low interest rates when compared to many other types of funding.
  • Interest can be deductible on your taxes. 
  • Depending on your requirements, you may have access to large sums of money to be used to grow your business. 
  • On-time repayments can help improve your credit rating. 


  • Many small, growing businesses don’t qualify for loans from traditional banks. They often need cash faster than the process would allow anyway. 
  • Most lenders have strict guidelines for loans and a lengthy review process.
  • You may need to have a good credit rating. Anything else and you may not qualify and if you do you’ll likely pay a higher interest rate or have unfavorable payment terms.
  • Rates and payment terms can fluctuate depending on the market. The more you borrow, the higher interest you may have to pay as the lender takes on more risk.
  • A business loan and the debt will show up on your balance sheet, which affect the valuation of your business. 

Lines of Credit

A line of credit (LOC) is a lot like a credit card. You can borrow money up to a certain maximum amount determined by your financial institution. You can cover day-to-day expenses and pay back your debt, only to borrow again when needed.


  • You can borrow when you need it.
  • When you’re short of cash, you can borrow only what you need as long as you don’t exceed your limit.
  • Making on-time payments can help improve your credit score.
  • Lines of credit can have low interest rates.
  • The payments on the line of credit vary and vary depending on your outstanding balance. 


  • As with loans, oftentimes banks won’t give small, growing businesses a line of credit. They often need cash faster than the process would allow anyway. 
  • There will be limits on the maximum amount you can borrow, which might not always be enough.
  • Although you pay-as-you-go, if you miss payments, are late, or move outside the terms of your agreement, you might face high fees.
  • It’s easy to misuse a line of credit (just like it’s easy to misuse a credit card). 
  • If your business fails, you are responsible for any payments and debt incurred from using your line of credit.
  • You need to have been in business at least two years, and will need to provide bank account information, financial statements, tax returns, and more to qualify. 
  • A line of credit is like a loan that needs to be repaid with interest.

Business Credit Cards

Like all forms of funding, business credit cards must be used wisely or things can go sideways very quickly. 


  • It’s easier to qualify for a business credit card than for a line of credit or business loan.
  • You have quick access to the cash you need when you need it.
  • Many business credit cards have reward programs or incentives, like cash back or airline miles. 
  • A business credit card can help build credit, which is helpful if you ever need to apply for a bank loan.


  • You may need to provide a personal guarantee to qualify.
  • High interest, annual fees and late charges can add up, especially if funding a large expense.
  • Many business credit cards do not offer purchase protection. 
  • Business credit cards come with security risks like fraudulent charges from unauthorized use and stolen credit card numbers. 
  • You risk overspending.

Receivables Factoring 

Receivable factoring is not a loan. The application process is quick, there is no repayment obligation, no high interest rates, and no debt to record on your company’s balance sheet. Plus, many more companies will qualify.  


  • Fast approval process, often within one business day.
  • You have access to fast cash (minus a small factoring fee) when you need it based on the value of your unpaid B2B invoice(s).
  • Cash advances can greatly improve shortfalls in cash flow due to slow-paying clients.
  • Does not require your business to have a long credit history, which is best for start-ups and fast-growing firms.
  • Factoring relies on the creditworthiness of your customers, not yours.
  • Invoice factoring is easier to obtain than most other forms of funding.
  • Funding can increase with the value of your invoices.
  • If your business is seasonal, factoring can infuse cash into your business to get you through the down times. 
  • Your accounts receivables are used as collateral, unlike many loans or lines of credit.
  • You give up no equity or control in your business in exchange for funding with factoring. 
  • No matter the size of your commercial real estate business, you can use factoring. 
  • Factoring works with all types of businesses.


  • Invoices need to be verified (customer contact sometimes required).
  • Can be complicated to account for in bookkeeping.

How Do You Choose a Real Estate Factoring Partner?

Choosing a factoring partner is a lot like choosing any lender. It pays to do your homework. There are also several questions to ask prior to starting the application process:

Does the factoring company work with commercial real estate firms?

Most factoring companies work with most industries, but not all. FundThrough provides factoring for the construction industry, healthcare industry, medical factoring, B2B and service-based businesses, and more. Some factors specialize in only a few industries. 

  • FundThrough works with B2B real estate companies.

What advance rates does the factoring company offer?

Advance rates on your outstanding receivables can range from 60% to 100%, depending on the factoring company and sometimes the industry. 

  • FundThrough— 100% of the invoice amount, less a processing fee.

What factoring fees does the factoring company charge?  

A factoring company should be able to provide what factoring fees it charges upfront. But some companies may make it difficult to determine the total costs of using their service. FundThrough offers transparent pricing so you know prior to signing an agreement. 

  • FundThrough pricing – 100% advance rates minus a flat fee. One up front price.

Does the factoring company have minimums?

A minimum is the amount you must factor every period (month, each quarter or every year). Some factoring companies offer plans that require minimums, while others do not. 

  • FundThrough doesn’t require minimums. Only fund when you need to.


Cash flow is the number one problem for most start-ups and small businesses, especially if they’re growing. This is also true for commercial real estate. Invoice factoring companies typically consider several situations before offering you an advance.

  • Nature of business: you must be a registered business selling goods or services to other businesses.
  • Service completion: Real estate financing via invoice factoring is only available for goods or services that your customer has marked as complete or delivered.
  • Encumbrance-free invoice: since invoices are the only collateral in a factoring arrangement, encumbrances such as tax liens can make it difficult to qualify for factoring. (But not impossible. FundThrough works with businesses on IRS and CRA tax payment plans all the time. We can even help you with getting an arrangement set up).

Factoring invoices is a sound financial strategy if you—

  • Spend time tracking down slow-paying customers and waiting 30, 60 or 90 days to be paid, which puts a tremendous burden on your business.
  • If you’ve delivered a product or provided a service to another business.
  • If you have slow times, down times, or your business is cyclical.
  • You experience times of cash flow crunch.
  • You need access to working capital to grow as a real estate business.
  • You can’t qualify for a loan.
  • Your customers or clients are creditworthy.

FundThrough takes the legwork out of accounts receivables financing. It’s fully automated platform is easy to navigate, it’s fee structure is transparent and a dedicated customer service rep is there when you have questions. Find out what FundThrough’s clients have to say, and start factoring your unpaid invoices today.

Simple. Intuitive. Real Estate Invoice Factoring.

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