How Invoice Factoring Can Backfire on Small Businesses

Cash Flow Conversations with Fexingo: Working Capital, Receivables, and Small Business Finance · Jun 10, 2026 · 8m · transcript

In this episode of Cash Flow Conversations, Lucas and Luna examine the hidden costs of invoice factoring for small businesses. Using the real-world example of a $2.6 million clawback from a factoring agreement at a regional construction supply company, they break down how factoring fees, reserve holds, and customer notification clauses can trap owners. They contrast factoring with alternatives like asset-based lending and invoice discounting, and discuss how a 13-week rolling forecast can reduce reliance on expensive financing. The conversation also touches on the importance of understanding…