What Happens After You Submit Invoices for Factoring? (Step-by-Step)

You've made the decision to factor your invoices and submitted them to a factoring company—but what happens next? Understanding what happens after submission helps set clear expectations for the funding process. We believe transparency is key to building strong partnerships with our clients. Let's walk through what typically happens behind the scenes from the moment you submit your invoices until cash hits your account.

The invoice factoring process includes a few verification steps designed to protect everyone involved and help ensure reliable funding for your business.

Step 1: Initial Invoice Review and Documentation Check​

The first stage begins immediately after you submit your invoices. Our team reviews the submitted documentation to make sure everything is complete and accurate.

During this initial review, we examine:
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• Invoice details including customer information, amounts, and terms
• Supporting documentation such as delivery receipts or work completion certificates
• Compliance with your factoring agreement terms
• Proper invoice formatting and required information

If we identify any missing information or discrepancies, we'll contact you quickly to help resolve the issue. Common items that may slow things down at this stage include missing purchase orders, incomplete customer information, or invoices that don't match agreed-upon criteria.

Pro tip: Creating a standardized invoice submission checklist can help speed up future funding requests and reduce back-and-forth communication.

Step 2: Customer Credit Verification and Account Setup

Once your invoices pass the initial review, the next step is customer verification. This helps confirm that your customers are creditworthy and capable of paying according to terms.

For new customers, we will:
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• Run commercial credit checks
• Review payment history and financial stability
• Analyze potential risk factors
• Establish appropriate credit limits for future transactions

If you're working with an existing approved customer, this stage usually moves much faster since an established profile is already in place.
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Every situation is different, and timelines can vary depending on the customer, industry, and size of the transaction.

Step 3: Final Approval and Funding Authorization

Once the review and account setup process is complete, your invoices move into final approval.

During this stage, we:
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• Confirm all required verification steps are complete
• Review advance amounts based on your factoring agreement
• Authorize the transfer of funds
• Generate transaction records and reporting

​Once approved, funding is authorized for transfer to your account.

Step 4: Fund Transfer and Account Notification

The final step is the transfer of funds to your business account.
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Depending on timing, banking processes, and the nature of the transaction, many businesses receive funding within the same business day or by the next business day after approval.
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Transfer methods may include:
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• ACH transfer
• Wire transfer
• Other secure electronic payment methods

You'll also receive confirmation when funds are sent, including transfer details and expected availability.

What to Expect from the Timeline

One of the most common questions businesses ask is: “How long does the process take?”
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The answer depends on a few factors, including:
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• Whether the customer is already approved
• The completeness of your documentation
• The complexity of the transaction
• Customer responsiveness during verification

For existing customers with complete documentation, the process can move very quickly. New customer setups or more detailed transactions may take longer.

Over time, most businesses find the process moves faster and becomes more routine as customer accounts and documentation become established.

Communication Throughout the Process

At Prairie Business Credit, communication is an important part of the relationship. We keep clients updated throughout the entire process so there are no surprises.
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You’ll receive updates regarding:
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• Confirmation of invoice receipt
• Requests for missing documentation
• Verification progress
• Approval status
• Funding confirmations

Our goal is to make the process feel straightforward, transparent, and easy to navigate.

Common Questions During the Process

Why does verification take time?
Verification helps protect everyone involved in the transaction. It confirms invoice accuracy, reduces disputes, and helps ensure smooth payment collection.

Can I speed up the process? 
Yes. Complete documentation, submitting invoices during business hours, and working with established customers can all help speed things up.

What happens if there's an issue?
If a problem comes up, we contact you directly to work through it. In many cases, it's simply a matter of clarifying documentation or correcting small details.

After Funding: Ongoing Invoice Management

Once invoices are funded, we continue managing the receivables process. As customer payments come in, the remaining balance—minus applicable fees—is remitted according to your agreement.
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This allows business owners to spend less time managing collections and more time focusing on operations, growth, and customers.

Making the Process Simple and Predictable

The invoice factoring process works best when expectations are clear and communication stays open. While every business situation is different, understanding what happens after invoices are submitted can help remove uncertainty and make the process feel much more manageable.

At Prairie Business Credit, we work to keep funding straightforward, transparent, and practical for growing businesses that need reliable cash flow support.
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Ready to learn more about how factoring works or whether it makes sense for your business? Contact us today to start the conversation.

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