A division of T Bank, N.A. · Member FDIC · Fort Worth, Texas
How invoice factoring works at Integra — from application to same day funding.
A complete, plain-English walkthrough of the bank-backed factoring process: what you’ll need, what we underwrite, how the money moves, what your customers see, and exactly what it costs. Written for operators by Integra’s president and reviewed by T Bank compliance.
All funding is subject to initial application approval. To qualify for same day funding, complete paperwork must be submitted by the 1:00 p.m. CT cutoff time.
The full process · 6 steps
Factoring, defined — in one paragraph.
Invoice factoring
accounts receivable financing
Invoice factoring is a form of accounts receivable financing in which a business sells one or more of its outstanding invoices to a factor (here, Integra) in exchange for an immediate cash advance of typically 80–95% of the invoice’s face value. The remainder — the reserve — is released back to the business, less an agreed factoring fee, when the customer pays.
Factoring is not a loan. It does not add debt to your balance sheet, does not require personal guarantees on your principals’ consumer credit, and does not appear as borrowing on your financial statements. Underwriting is based on your customers’ credit quality and payment history — not yours — which is why factoring is commonly used by growing operators who have strong customers but don’t yet qualify for traditional bank lines.
In the U.S., factoring is governed primarily by Article 9 of the Uniform Commercial Code (UCC) and, for bank-affiliated factors like Integra, the regulatory framework that applies to FDIC-insured banks.
Honest answers · What if
Things go sideways.Here's what happens.
Factoring relationships should be transparent on the bad days, not just the good ones. These are the edge cases operators ask about most often, with our actual process for each.
Q: My customer disputes the invoice.
Disputes are flagged on receipt. Your account manager works with your AR contact to resolve. We never escalate to the customer without your sign-off. Once resolved, we fund the corrected amount.
Q: My customer pays slow — past 90 days.
Under recourse: you buy the invoice back at face value, freeing the reserve for new invoices. Under non-recourse: if the customer is insolvent (not just slow), Integra absorbs the loss on the approved credit limit.
Q: A customer cuts a check to me instead of the lockbox.
It happens — endorse it over to Integra within 2 business days and forward. We’ll reach out to that customer’s AP team with corrected remit-to instructions on your behalf.
Q: I want to leave Integra and go back to my bank line.
No termination fee. Provide 30 days’ notice; we release the UCC filing once the last factored invoice clears. Many former Integra clients later return for the bank-backed stability during a growth phase.
Q: I have a customer Integra won't approve.
You can still invoice them — Integra simply won’t advance against those receivables. We’re explicit about which customers are in-program and which aren’t. No surprise rejections after the fact.
Q: My business is growing fast. Will Integra keep up?
As a bank division, our capital base scales with you. We routinely increase facilities without re-pricing. Independent factors capped by outside credit lines often cannot match this.
Plain-English glossary
Factoring terms decoded.
If a factor uses one of these words without explaining it, that’s a red flag — not a feature. Here are the terms you’ll encounter, in plain English.
Advance rate
The percentage of an invoice’s face value the factor wires you on Day 1. Industry-typical range: 80–95%.
Reserve
The portion of the invoice held back until your customer pays. Released to you, less the agreed fee, on settlement.
Factoring fee
The all-in price of the advance, typically 1–4% of invoice value, tied to how long the customer takes to pay.
Recourse
If the customer doesn’t pay within an agreed window, you buy the invoice back at face. The most common structure.
Non-recourse
If a previously-approved customer becomes insolvent, the factor absorbs the loss. Priced higher to reflect that risk.
Lockbox
A bank-controlled deposit account that receives customer payments on factored invoices. Bank-grade audit trail on every dollar.
Notice of Assignment (NOA)
A letter notifying your customer that this invoice is payable to the factor’s lockbox. Standard, professional, transparent.
UCC-1 filing
A public state filing perfecting the factor’s security interest in your A/R. Standard practice in all U.S. factoring.
Spot factoring
Factoring just the invoices you choose, rather than your whole ledger. Slightly higher per-invoice rate.
Frequently asked questions
Common questions,straight answers.
Initial onboarding takes 3–5 business days. After onboarding, approved invoices submitted before 1 PM Central Time fund the same business day via wire. ACH funding arrives the next business day.
The advance rate is the percentage of the invoice’s face value that Integra wires to you immediately upon submission. For most U.S. industries this is between 80% and 95%; the remainder is held in reserve and released, less the factoring fee, when your customer pays.
No. Factoring is the sale of an asset (the invoice), not a loan. It does not add debt to your balance sheet, does not create a guaranty obligation on your principals’ personal credit, and does not appear as borrowing on your financial statements.
Yes. Factoring requires a Notice of Assignment to each customer redirecting payment to the T Bank lockbox. Integra’s collections team is professional and represents itself transparently as your funding partner — your customer relationships stay intact.
Integra Funding Solutions is a division of T Bank, N.A. — a federally chartered, FDIC-insured bank. Integra operates under T Bank’s federal charter and is subject to the same regulatory, capital, audit, and consumer-protection standards as any U.S. bank.
Recourse factoring means your business buys back any invoice the customer fails to pay within an agreed window (often 90 days). Non-recourse means Integra absorbs the credit loss if a previously-approved customer becomes insolvent. Integra offers both — non-recourse priced higher to reflect the additional credit risk Integra takes.
Both. Integra offers full-ledger factoring (all qualifying invoices, lowest rate) and spot/selective factoring (you pick which invoices to fund). Spot factoring carries a slightly higher per-invoice rate. You can switch programs mid-relationship without penalty.
Most U.S. factoring agreements price as a factoring fee of 1–4% of invoice face value, tied to how long the customer takes to pay. Your specific rate depends on industry, invoice volume, average payment cycle, and customer concentration. Integra quotes a custom rate after a no-cost A/R aging review, typically within 24 hours.
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We are ready to provide the stable cash flow your business needs to grow. Contact our specialized team to discuss your unique factoring solution.