Both turn future money into cash today, but they underwrite completely differently. One advances your unpaid invoices; the other advances against your sales.
Choose invoice factoring if you invoice other businesses and your cash is stuck in net-30 to net-90 terms — approval rides on your customers’ credit, so even newer businesses qualify.
Choose revenue-based financing if you have consistent sales (especially card or online revenue) but few invoices or hard assets — funding scales with revenue and repayment flexes with it.
One application compares both, plus lines of credit, so you can see which is cheapest for your situation.
It depends on your margins and how fast customers pay. Factoring fees are charged per invoice (1–5%); revenue-based financing uses a factor rate. Our factor-rate calculator converts both to a comparable cost.
Not necessarily. Factoring underwrites your customers, not you. Revenue-based financing underwrites your sales. Both are open to businesses that banks would decline on credit alone.
Yes. One EQ Funding application routes your file to 50 lenders covering both, so you see invoice factoring and revenue-based financing offers side by side and choose the better deal — instead of applying separately and guessing which is more competitive.
No. Comparing offers uses a soft pull that has no effect on your credit score. A hard inquiry only happens once you accept a specific lender — so there is no downside to seeing both before you decide.
Nothing to you. EQ Funding is paid by the lender when your deal closes — never by the borrower. Because lenders compete, the winning offer is often better than what a single source would have made.
Most applicants see first offers within about 24 hours and can fund in as little as 48 hours after accepting. SBA-backed options take longer but carry the lowest rates.
Six questions. Two minutes. No effect on your credit score. Real offers from 50 lenders within 24 hours.