Question 1

What is the difference between invoice financing and invoice factoring?

Accepted Answer

Invoice financing is a loan against your invoices — you retain ownership and your customer pays you directly. Invoice factoring sells your invoices to a third party who then collects from your customer. OCTA uses invoice financing, meaning you keep full control of your customer relationships. Factoring typically costs 2-5% per invoice while OCTA's financing offers transparent, competitive rates.

Question 2

Is invoice financing better than factoring for my business?

Accepted Answer

For most businesses, invoice financing is preferable because you maintain customer relationships, there are no minimum volumes, and you can finance individual invoices as needed. Factoring may suit businesses that want to fully outsource collections, but the cost is typically higher and the factor's direct contact with your customers can create friction. OCTA's integrated approach gives you financing without changing your workflow.

Question 3

How quickly can I access funds through OCTA's invoice financing?

Accepted Answer

OCTA provides funding in as little as 4 hours after approval. Eligibility is checked instantly using your existing AR data — customer payment history, invoice patterns, and business performance. There's no separate application process. Complete a one-time KYC and financing eligibility appears automatically on every invoice in your OCTA dashboard. Traditional factoring typically takes 3-7 business days.

Question 4

What are the hidden costs of invoice factoring?

Accepted Answer

Beyond the discount rate (2-5%), factoring often includes setup fees ($500-2,000), monthly minimum fees, wire transfer fees per advance, credit check fees for new customers, and early termination penalties for long-term contracts. OCTA's invoice financing has transparent pricing with no hidden fees — you see the exact cost before confirming each advance, and there are no lock-in contracts or minimums.

OCTA Invoice Financing vs Traditional Factoring