Invoice factoring · Extended terms
Accept net 60 and net 90
without financing it yourself.
Net 60 and net 90 invoice financing converts long-dated invoices into cash so you can accept extended customer terms without funding them from your own working capital. Once approved, eligible invoices can typically be funded within 24 to 48 hours. You still offer the terms your customer requires; the waiting period simply stops being yours to absorb.
Based in Oklahoma City. Funding businesses nationwide.
By the Hexagon Commercial Finance team.
Extended terms are a transfer of working capital.
When a large buyer sets net 90 terms, the effect is that you fund ninety days of their operations at no cost to them. It is rarely framed that way in the contract, but that is the economic substance of it.
Because the terms are usually non-negotiable for a smaller supplier, the practical question is not whether to accept them but who carries the cost of the gap. Absorbed from your own cash, that cost appears as contracts you cannot take, suppliers paid late, and hiring you postpone.
Invoice financing moves the gap off your balance sheet at a defined, quotable price, which is generally a better outcome than an undefined price paid in lost opportunity.
The arithmetic, done properly.
Start with your monthly invoicing on extended terms. Multiply by the terms in months to get the capital permanently locked in receivables. A company invoicing 150,000 dollars a month on net 60 has around 300,000 dollars outstanding at any time.
Now set the cost of factoring those invoices against what the released capital would produce. If 300,000 dollars in working capital allows you to run an additional crew, take an extra contract, or buy materials at volume pricing, the comparison is between a known fee and a measurable gain.
If the released capital would simply sit in the account, factoring is not the right tool this quarter. That is a legitimate conclusion and we would rather you reach it before signing than after.
Practical notes on long-dated invoices.
Documentation matters more as terms extend. A net 90 invoice has three months in which a dispute can surface, so signed delivery evidence, accepted progress billings and clear purchase order references materially reduce friction.
Verification timing matters too. Submitting invoices promptly after acceptance rather than batching them at month end shortens the period you are waiting and reduces the total fee.
Concentration deserves attention. Extended terms are usually imposed by the largest buyers, so businesses on net 90 often have concentrated ledgers. That is manageable, but it should be discussed openly during setup rather than treated as a surprise.
At a glance
- Terms financed
- Net 30, net 60 and net 90 commercial invoices
- Typical advance
- 80 to 90 percent of eligible invoice value, depending on industry, customer credit and facility terms
- Typical funding speed
- Once approved, eligible invoices can typically be funded within 24 to 48 hours
- Fee basis
- Per period the invoice is outstanding
- Customer terms
- Unchanged. Your customer keeps their schedule
- Service area
- Nationwide, from our Oklahoma City office
Questions people ask
Take the contract. Let the terms be someone else's problem.
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