What is Invoice Factoring:

• Designed for small and medium-sized businesses to convert unpaid B2B invoices into immediate working capital.

• Addresses cash flow bottlenecks caused by delayed customer payments.

• Non-recourse factoring: Step By Step Capital assumes the risk of non-payment.
  

  Key Features:

  • Businesses sell accounts receivable to Step By Step Capital at a discount rate (1%–5%).

  • Discount rate depends on invoice age, volume, and client credit quality.

  • Advances 80–95% of invoice value upon approval; remainder (minus fees) paid after client settles invoice.

  • Funds transferred via ACH or wire transfer within 24–48 hours of approval.
    

  Purpose:

  • Provides liquidity for rapid scaling, bulk inventory purchases, hiring surges, or meeting payroll/supplier commitments.

  • Ideal for industries like manufacturing, staffing, and wholesale distribution.
    

  Eligibility:

  • Based primarily on the creditworthiness of the business’s customers, not the business’s own financial history.

  • Minimum invoice value: $5,000; payment terms up to 90 days.

  • Requires high-quality receivables from creditworthy clients; high-risk payers may not qualify.
    

  Application Process:

  • Simple online inquiry with details on business operations, average invoice values, and payment terms.

  • Pre-qualification followed by swift due diligence, including invoice verification and Notice of Assignment.

  • Streamlined, paper-light process to minimize administrative burdens.
    

  Benefits:

  • Immediate cash flow without stringent credit checks or collateral requirements of traditional bank loans.

  • Enhances liquidity for growth opportunities without accruing debt or diluting equity.

  • Transparent, performance-based fees with no hidden charges.

  • Flexible scalability: handles monthly invoice volumes from $50,000 to several million.

  • No long-term contracts, offering freedom to adjust participation.
    

  Strategic Advantages:

  • Frees businesses from collection hassles, allowing focus on core operations.

  • Converts static receivables into dynamic capital for innovation and resilience.

  • Supports sustainable expansion in competitive markets.