From Invoice to Funded: What Actually Happens
The full process — with real timelines, real documents, and real expectations. No surprises, no fine print, no black boxes.
5 Min+
Application Time
Same-Day
Verification
48 Hrs
To First Invoice Funded
4 Hrs
Repeat Invoice Funding
What to Expect
Four steps. Fully transparent.
Most factoring companies describe their process in three vague steps. Here’s exactly what happens — including what we do, what you do, and how long each step takes. If you’ve worked with other factors before, you’ll notice the difference immediately.
For CFOs and controllers: Each step below includes the financial and legal mechanics — UCC-1 filing, Notice of Assignment, advance rate structure, and recourse vs. non-recourse treatment. We don't simplify these terms because your decision depends on understanding them precisely.
5 minutes
Apply — No Credit Check on Your Business
Submit a short digital application: your business name, industry, monthly invoice volume, and contact information. We evaluate your customers' creditworthiness — not yours. Your personal credit and business credit score are not factors in your approval. There's no minimum invoice volume, no minimum time-in-business requirement, and no application fee.
What you provide:
What we do:
- Business name and contact info
- Industry and monthly invoice volume
- Names of your primary customers
- Assign a licensed underwriter to your account
- Begin preliminary customer credit review
- Confirm application receipt within 1 hour
Same day
Verify — We Check Your Customers, Not You
Our underwriting team verifies the invoices you want to factor and evaluates your customers' credit profiles. We confirm that the underlying work or goods have been delivered, that the invoice amount is accurate, and that your customer is creditworthy. We also confirm which customers qualify for non-recourse treatment versus recourse. This is the step where your advance rate is calculated — based on your customer's credit profile and industry risk, not a flat percentage.
What you provide
What we do
- Copies of invoices to be factored
- Proof of delivery or completed work
- Accounts receivable aging report (if available)
- Run credit check on your customers (not you)
- Verify invoice accuracy and delivery confirmation
- Determine advance rate and non-recourse eligibility
- File UCC-1 lien on accounts receivable
UCC-1 filing: As part of establishing the factoring facility, Sigma files a UCC-1 financing statement, creating a perfected security interest in your accounts receivable. This is standard practice in commercial factoring and does not affect your credit score. If you have an existing bank line of credit secured against receivables, we'll coordinate subordination or carve-out with your lender.
Before you sign
Approve — A Human Underwriter, Not an Algorithm
Your assigned underwriter reviews the complete file and issues an approval decision. You'll receive a written proposal showing your advance rate, discount fee, and all terms — before you sign anything. No surprises. If something needs clarification, your underwriter calls you directly. There's no automated decision tree, no offshore review team, no delays waiting for committee sign-off.
What you receive
Key terms in your proposal
- Written proposal: advance rate, fee, net proceeds
- Non-recourse eligibility confirmed per customer
- Factoring agreement for review (no obligation to sign)
- Advance rate (% of invoice face value released upfront)
- Discount fee (flat per-invoice, shown before you sign)
- Notice of Assignment (NOA) process and language
- Reserve release schedule
Notice of Assignment (NOA):: When you factor an invoice, your customer is notified by letter that payment should be directed to Sigma. This is a legal requirement of factoring — it protects both Sigma's security interest and your customer's payment records. Sigma's collections team handles all NOA communications professionally, using language designed to preserve your customer relationship. The NOA does not indicate financial distress.
Within 48 hours
Fund — First Invoice Funded Within 48 Hours
Once you sign the agreement and submit your first invoice, the advance is wired to your business bank account within 48 hours of your completed application. Subsequent invoices submitted on an active account are funded in 4 hours. When your customer pays the invoice in full, Sigma releases the reserve balance — minus the discount fee — back to you. In a non-recourse arrangement, if your customer becomes insolvent, you retain the advance and Sigma absorbs the loss.
What happens at funding
When customer pays
- Advance wired to your business account (ACH or wire)
- NOA sent to your customer by Sigma
- Invoice tracked in your client portal
- Sigma receives full invoice payment
- Reserve balance released to you (minus fee)
- Non-recourse: Sigma absorbs loss if customer is insolvent
Before You Apply
What to Gather in Advance
Most clients are fully funded before they've assembled a complete document package. Here's what we need — organized by when we need it.
Required at Application
To open your account
- Completed application form (5 minutes online)
- Business name and primary contact information
- Industry and monthly invoice volume (estimate is fine)
- Names of 2–3 customers you plan to factor
- Voided business check (for wire setup)
Required at First Invoice
To fund your first invoice
- Copy of invoice(s) to be factored
- Proof of delivery or work completion (signed timesheet, POD, or GC approval)
- Accounts receivable aging report (if available)
- Signed factoring agreement
- Articles of incorporation or business formation docs
Optional (Speeds Approval)
Helpful but not required
- Last 3 months bank statements (helps with higher volume requests)
- Existing A/R aging schedule
- Customer contracts or master service agreements
- Prior factoring agreement (if switching from another factor)
- Financial statements (for credit facility requests over $1M)
What to Expect
Day by Day
Subsequent invoices: funded in 4 hours on active accounts · ongoing availability based on customer credit
01
Day 1 — Morning
Submit Application
5-minute form. Underwriter assigned within 1 hour. Preliminary customer credit review begins immediately.
02
Day 1 — Afternoon
Proposal Issued
Written proposal with advance rate, fee, and all terms sent to you. No obligation to sign.
03
Day 2 — Morning
Agreement Signed + Invoice Submitted
Sign agreement. Submit your first invoice with proof of delivery. Sigma verifies and schedules wire.
04
Day 2 — End of Day
Funds in Your Account
First invoice funded within 48 hours of your completed application. Advance reflected in your business account.
Plain English Terms
The Agreement, Clarified.
Three things you need to understand before you sign. No surprises, no buried clauses.
Month-to-Month by Default
Our standard agreement is month-to-month with 30 days notice prior to renewal. There is no annual commitment. If your situation calls for different terms — including exit provisions tied to a specific business event like a bank line of credit becoming available — we build custom provisions into the agreement.
30-day notice to exit
Term Length
One Flat Fee Per Invoice
One discount fee per invoice factored — calculated as a flat rate against the invoice face value, based on your industry and your customer's credit profile. No wire fees, no monthly minimums, no setup fees, no termination penalties. Your exact fee is shown in your proposal before you sign anything. What you see is what you pay.
No hidden fees
Fee Structure
Simple, Documented Exit
30 days notice prior to renewal is standard. We also build custom exit provisions when your situation calls for it — including clauses tied to specific business events like securing a bank line of credit. No termination penalty. No early exit fees. Your remaining reserve balance is released within 90 days of the last invoice clearing.
No termination penalty
How to Exit
Our Approach
Talk to an Underwriter Before You Apply.
Book a Call
15-min review
Pick a time that works. We'll review your invoices and give you a rate range before the call ends.
Request a CallHow long does the first approval actually take?
Your first approval — including account setup and initial invoice verification — completes within 48 hours of application submission. Once your account is active, subsequent invoices are funded in 4 hours. The 4-hour figure applies to ongoing operations, not the initial onboarding, which requires additional verification steps. We tell you this upfront because it’s the honest answer, and we’d rather set the right expectation than oversell the first experience.
What happens if my customer pays Sigma late?
In a non-recourse arrangement: if your customer pays late but ultimately pays, your reserve is simply released when payment clears — no penalty to you for the delay. If your customer becomes insolvent and cannot pay, Sigma absorbs the loss in a non-recourse structure — you keep the advance. In a recourse arrangement, late or unpaid invoices may require you to repurchase the invoice at the original face value. Your proposal will specify which structure applies to each customer on your account. Most of Sigma’s clients operate under non-recourse terms.
Can I factor invoices selectively — only the ones I want?
Yes. You choose which invoices to submit and when. There’s no minimum submission requirement and no obligation to factor every invoice you issue. Some clients factor all invoices from one or two large customers; others factor selectively by cash flow need. The only constraint is that invoices submitted must represent genuine, verifiable receivables from creditworthy B2B customers. You’re in control of the cadence.
Will my customers know I'm using a factor?
Yes — and this is worth understanding clearly. When you factor an invoice, your customer receives a Notice of Assignment (NOA) directing them to send payment to Sigma instead of to you. This is a legal requirement of factoring and is standard practice across all commercial factoring relationships. The NOA does not indicate financial distress — many of the largest and most sophisticated businesses in the world use factoring as a standard working-capital tool. Sigma’s collections team handles all customer communications professionally, using language designed to preserve your customer relationship. We’ve processed over $900M in invoices without a single customer complaint attributable to the NOA process.
What's the difference between the advance and the full invoice amount?
When you factor an invoice, you receive the advance immediately — the percentage of the invoice face value released upfront varies based on your industry and your customer’s creditworthiness. The remaining balance (the reserve) is held by Sigma until your customer pays in full. When payment clears, Sigma releases the reserve minus the discount fee. Use our Capital Estimator to see your specific advance amount — it’s calculated based on your actual inputs, not a generic rate.
Live Capital Markets
Ready to Submit Your First Invoice?
First invoice funded within 48 hours, repeat invoices in 4. Human underwriter. No personal guarantee required.
- No commitments
- No hidden fees
- No long-term contract required