B2B Invoice Factoring for Wholesalers, Distributors and Service Businesses
Fuel costs, driver wages, and maintenance do not wait for freight bills to clear. Get funded in 24 hours and keep your fleet moving.
The B2B Cash Flow Gap
Fuel is purchased before a load is delivered. Driver wages are due every week. Insurance, maintenance, and lease payments do not pause. But freight brokers and shippers routinely take 30, 60, or 90 days to pay freight bills that have already been earned.
That gap is where trucking businesses stall. Unable to take on new loads, cover operating costs, or keep trucks on the road because cash is tied up in unpaid invoices. Freight factoring converts those invoices into immediate cash, so your operation does not have to wait.
What You Get With Meritus Capital
Up to 95% Advance
On approved freight invoices, funded within 24 hours.
1 to 3% Factoring Rate
Depending on invoice volume, client payment terms, and factoring agreement.
Scales With You
Sell invoices as needed. No debt incurred.
What Is B2B Invoice Factoring?
Fuel is purchased before a load is delivered. Driver wages are due every week. Insurance, maintenance, and lease payments do not pause. But freight brokers and shippers routinely take 30, 60, or 90 days to pay freight bills that have already been earned.
It is not a loan. No debt on your balance sheet, no collateral pledged, no monthly repayment schedule. You accelerate access to the money your clients already owe you.
Invoice Factoring for Wholesale and Distribution Companies
Wholesale and distribution companies operate on thin margins with high invoice volumes and slow-paying commercial accounts. You pay suppliers upfront or on short terms, while your retail and commercial buyers operate on net 60 or net 90. That structural gap limits purchasing power, constrains inventory, and slows growth.
Meritus Capital advances up to 95% of your distribution invoices, providing wholesale and distribution companies with the working capital to restock, fulfill orders, and pay suppliers without waiting for customer payments.
Accounts Receivable Factoring for B2B Service Companies
B2B service businesses, including consultants, agencies, and professional services firms, often carry large accounts receivable balances relative to their overhead. One slow-paying client can put pressure on the entire operation.
Accounts receivable factoring converts those outstanding balances into immediate cash, giving service companies the working capital to hire, invest, and grow without waiting on extended payment cycles.
How the Invoice Factoring Process Works
Submit Your Invoices
After completing work or delivering goods to your B2B client, submit your outstanding invoices to Meritus Capital.
Receive Your Cash Advance
We advance up to 95% of the invoice value within 24 hours. Cover payroll, pay suppliers, purchase inventory, or fund your next order.
We Handle Collections
Meritus Capital collects from your client when the invoice is due. Once the customer pays, we release the remaining balance to you, minus a 1-3% service fee.
Recourse vs. Non-Recourse.
We walk you through both options and help you choose the structure that fits your client base.
Recourse Factoring
If your client doesn't pay, you buy back the invoice. Lower fees, more responsibility on your end.
Non-Recourse Factoring
We absorb the loss if your client becomes insolvent. More protection against credit risk, slightly higher rates.
Who Qualifies for B2B Invoice Factoring?
B2B invoice factoring is available to businesses that:
Approval is based on your clients' creditworthiness, not your business's financial history, credit score, or years in operation. That makes accounts receivable factoring accessible to growing businesses, distributors with thin margins, and companies that do not qualify for traditional bank loans.
Why B2B Companies Choose Meritus Capital
Fast Funding
B2B invoices funded within 24 hours of submission.
Dedicated Support
One account manager who understands your industry and your client base.
Scales With You
Your funding line grows as your invoice volume grows. No re-application needed.
Transaction-based
Sell invoices as needed. No debt incurred.
Frequently Asked Questions About B2B Invoice Factoring
What is B2B invoice factoring?
B2B invoice factoring is the sale of outstanding business-to-business invoices to a factoring company for an immediate cash advance, typically up to 95% of the invoice value. The factoring company collects from your client when the invoice is due and releases the remaining balance to you after settlement, minus a service fee. It is not a loan.
How much does invoice factoring cost?
Meritus Capital charges 1 to 3% of the invoice value, depending on invoice volume, client payment terms, and the factoring agreement structure.
What is the difference between recourse and non-recourse factoring?
With recourse factoring, you buy back the invoice if your client does not pay. With non-recourse factoring, Meritus absorbs the loss if your client becomes insolvent. Recourse factoring carries lower factoring fees; non-recourse factoring reduces your credit risk at a slightly higher cost.
What types of B2B businesses qualify for invoice factoring?
Any business that invoices other businesses or government entities on net terms may qualify. Meritus Capital works with wholesale distributors, distribution companies, and B2B service providers. Approval is based on your clients' creditworthiness, not your own credit history.
Do I have to factor every invoice?
No. You choose which invoices to submit. There is no obligation to factor every invoice you issue.
How does invoice factoring affect my client relationships?
Most clients experience no disruption. Meritus Capital's collections process is professional and designed to preserve your business relationships. Your clients simply redirect payment for factored invoices to Meritus Capital when the invoice is due.
Ready to Close the B2B Cash Flow Gap?
Join 800+ businesses that have used Meritus Capital's invoice factoring services to pay suppliers on time, fulfill more orders, and grow without waiting on customer payments.
Questions? Call 877-648-3709
More questions? We're here to help.
Send us a note and our team will reach out to you or simply call us at 877-648-3709