Factoring and invoice financing can get you cash sooner — but usually at a real cost. Here’s how Rivelo gets you paid fast without the trade-offs.
Factoring works by selling your unpaid invoices to a third party at a discount — you get cash sooner, but you give up part of every invoice’s value to get it, on top of ongoing fees. And it’s rarely a one-time thing: most factoring relationships come with contracts, minimum volume commitments, and monthly fees that continue whether or not you’re using them that month.
There’s also a relationship cost that doesn’t show up on a term sheet. Factoring usually means your customer finds out their invoice was sold to a third party — and if that invoice goes late, it’s the factor’s collections process reaching out, not you. That’s not always the impression you want a customer to have of doing business with you.
With Pay Later, you’re not selling anything. You’re paid once the order ships — usually next business day — through Rivelo’s financing partner, and your customer still deals directly with you, on an invoice that still looks like yours. There’s no discount taken off the invoice value if your customer covers the fee, no ongoing contract or minimum commitment, and no risk of the payment being reversed once it’s used.
No. Rivelo doesn’t buy your invoices or take a discount off their value. You’re paid in full if your customer covers the fee, and your customer’s relationship stays with you either way.
Yes — Pay Later is presented as a payment option on the invoice itself, the same way ACH or card would be. It’s not a third party stepping in after the fact.
No. A merchant cash advance is an advance against your future receivables, repaid through a fixed deduction taken from your sales every day or week — regardless of how business is actually going that week. Rivelo doesn’t advance anything against your revenue, and you’re not the one repaying anything. With Pay Later, Rivelo’s financing partner extends credit directly to your customer for a fixed 30, 60, or 90-day term, at a fraction of typical MCA rates — you’re simply paid once the order ships.
Most businesses using Rivelo alongside or instead of factoring do so because they want cash flow without giving up a percentage of every invoice or being locked into a contract. Talk to us about your specific setup.
Talk to our team and get started in a few days, not a few months.