What is the difference between invoice factoring and a bridge advance?
Factoring is tied to a specific invoice; a bridge advance is tied to your overall revenue. In factoring you sell a named receivable and the factor collects from your customer, so their main question is whether your customer pays. In a bridge advance the money is repaid from your own future deposits, so the question is whether your business has steady revenue.
Who does the funder collect from?
This is the practical difference. A factor usually collects from your customer directly, which means your customer learns you are factoring. A bridge advance is repaid out of your own account, so the arrangement stays between you and the funder.
Which is cheaper?
It depends on invoice quality. Factoring against a large, creditworthy payer is often cheaper because the risk sits with that payer. Where the invoices are small, numerous, or owed by businesses that pay slowly, factoring gets expensive to administer and revenue-based capital often prices better.
Which one suits a business with no invoices?
Revenue-based capital. Retail, food service, and most cash-and-card businesses have no receivable to sell, so factoring simply does not apply.
Check what you qualify for
Four questions, a soft pull only, and no upfront fee. We are a broker: we place your file with funders and are paid by the funder on close, so nothing is charged to you to apply.
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