How to Manage High-Volume Invoicing When Working with a Factoring Company

Do you feel like your business is buried under a mountain of receivables that you don’t have the time or energy to chase? This situation is common in certain industries, and it can result in a number of problems, ranging from late payments to cash flow issues. High-volume invoice factoring might be the solution you’re looking for. Give us a few moments, and we’ll walk you through how it can boost your cash flow and reduce your back-office burdens. 

How to Know if You’re in the High-Volume Invoicing Category

When people say “high-volume invoicing,” it means your business is processing a large number of individual invoices in a short period. While there’s no universal cutoff for this, it often means you’re generating hundreds or even thousands of invoices in a month. Don’t fret if you’re producing far fewer invoices than this, though, as the solutions we’ll cover can still help. 

Common High-Invoicing Industries

Certain B2B sectors tend to experience high-volume invoicing. We’ll take a look at a few industries below.

• Transportation and Freight Brokerage: When it comes to trucking companies and freight brokerages, multiple loads are commonly invoiced daily, and they’re often sent to many different shippers or brokers.
• Staffing Agencies: Dozens or hundreds of workers generate separate invoices for their placements at staffing agencies each week.
• Manufacturing and Wholesale Distribution: Large product runs shipped to many buyers can quickly create hundreds of invoices for manufacturers and wholesale distributors.
• Janitorial and Maintenance Services: It’s common for janitorial service companies and maintenance companies to have recurring service contracts for multiple locations, resulting in frequent billing cycles.
• Technology and Telecom Services: Often, technology companies such as software-as-a-service (SaaS) or telecom providers invoice numerous business accounts every month.

How High-Volume Invoicing Impacts Your Business

High-volume invoicing can affect your operations in many ways.

• Increased Administrative Load: Processing, verifying, and sending large numbers of invoices requires significant staff time. In fact, mid-sized businesses spend an average of 14 hours a week chasing down payments, according to Intuit. This figure translates directly into lost productivity.
• Greater Exposure to Delays and Errors: With more invoices in circulation, there are more opportunities for missing information, mismatched purchase orders, or customer disputes that can slow payment.
• Cash Flow Strain: Even when most customers pay on time, the sheer volume means there is almost always a portion of receivables tied up in the payment cycle, which can limit working capital.
• Heavier Collections Effort: Following up on dozens or hundreds of overdue accounts is time-consuming, and without a strong process, smaller balances can slip through the cracks.

These concerns create enough challenges as it is, but nearly half of all business‑to‑business (B2B) invoices in Canada are paid late, according to Atradius. This shifts the balance from maintaining steady cash flow to investing heavily in chasing money you’ve already earned just to stay afloat. 

Apply High-Volume Invoice Processing Tips

Small process improvements can lead to significant time and cost savings. Consider these strategies to keep your billing workflow accurate, efficient, and less stressful.

Automate Where Possible

Use accounting software or integrated invoicing tools to generate, send, and track invoices automatically. This reduces manual entry errors and speeds up delivery.

Standardise Invoice Formats

Consistent templates make it easier for customers to process payments and help your team spot discrepancies faster.

Set Clear Documentation Requirements

Ensure every invoice is backed by accurate purchase orders, signed delivery receipts, or timesheets before it leaves your system.

Batch Your Processes

Group similar tasks, such as invoice approvals or sending reminders, to minimise switching between activities and boost efficiency.

Monitor Key Metrics

Track average days to payment, error rates, and disputed invoices so you can identify bottlenecks early.

Consider Cash Flow Solutions for Large Invoices

If late payments are a recurring challenge or you’re struggling to keep up with collections, invoice factoring, sometimes called accounts receivable factoring, can convert approved invoices into immediate working capital while freeing your team from collections.

Leverage B2B Factoring for Large Invoice Amounts 

If your business is producing a significant number of invoices each month, staying on top of payments can quickly become an uphill battle. As mentioned, one solution many businesses turn to is invoice factoring.

How Invoice Factoring for SMBs Works

Let’s start with the big question: “What is invoice factoring?” Simply put, it’s a funding arrangement that lets you convert your accounts receivable into immediate cash. Here’s the basic process:

• Sell Your Invoices to a Factoring Company: You provide the factoring company with your approved invoices.
• Receive an Advance: The factoring company pays you a large portion of the invoice value up front, often within 24 hours.
• Collections and Final Payment: The factoring company collects payment from your customer. Once the payment is received, you get the remaining balance, minus the agreed-upon factoring fee.

Key Benefits of Factoring for Large Invoice Volumes

High-volume invoicing creates unique pressures that factoring can help relieve.

• Faster Access to Working Capital: Instead of waiting weeks or months for payment, you can access most of your receivables almost immediately.
• Reduced Collections Burden: The factoring company handles follow-ups, freeing your staff to focus on billing accuracy and customer relationships.
• Scalability without Cash Flow Gaps: As your invoice count grows, the amount you can factor grows with it, giving you the financial agility to take on more orders or contracts.
• Predictable Cash Flow for Planning: Consistent access to funds makes it easier to manage payroll, replenish inventory, or invest in growth opportunities without dipping into reserves.

Tips for Finding the Best Factoring Companies for High-Volume Invoices

When you’re exploring high-volume invoice factoring, you need a partner that can keep pace without adding friction to your process. Use these tips to identify companies that will meet your operational needs and financial goals.

Match Their Capacity to Your Volume

Not all factoring companies specialise in handling high-volume clients. Ask about their systems, staffing, and experience with businesses in your industry. A provider accustomed to processing bulk invoices can minimise errors, speed approvals, and ensure timely advances.

Evaluate Technology and Integration Options

High-volume invoicing benefits from automation. Look for factoring companies that integrate with your accounting or ERP software, provide online portals for submissions, and offer real-time tracking of payments and advances.

Understand Factoring Company Fees for Bulk Invoices

You can also use an invoice factoring calculator to get a better feel for how your volume impacts rates in advance. Some providers offer volume-based pricing, meaning the more invoices you factor, the lower your percentage fee may be. When you talk to companies directly, ask whether fees are charged per invoice, as a flat monthly rate, or based on total dollar value. Ask for a complete breakdown, including any hidden costs like minimum volume requirements or administrative charges. 

Review Contract Flexibility

High-volume businesses often experience seasonal shifts or sudden spikes in billing. Flexible contracts, such as month-to-month agreements or adjustable minimums, can help you adapt without penalty.

Check Service and Communication Standards

With so many invoices in play, you need fast responses to questions or issues. Ask about average turnaround times for funding, dedicated account managers, and support availability.

Work with a Pro

Sifting through factoring companies to find the best match isn’t always effective and can drain your time. Consider working with a company like Factoring Companies Canada that can match you with factoring companies that are a good fit for your needs.

How to Streamline Invoice Factoring

Factoring can move cash into your account quickly, but delays often come from missing information, inconsistent processes, or poor communication. By tightening your approach, you can speed up approvals and funding.

Submit Complete and Accurate Documentation

Factoring companies rely on your paperwork to verify invoices before advancing funds. Provide all required supporting documents, such as purchase orders, signed delivery receipts, or approved timesheets, at the same time you submit the invoice. Missing or incorrect details can stall funding.

Maintain Up-to-Date Customer Approvals

If your factoring company requires debtor credit checks or account approvals, keep these current. Regularly review your customer list to ensure new accounts are pre-approved and existing approvals have not expired.

Use The Factoring Company’s Preferred Submission Method

Many factoring companies offer online portals or system integrations to speed processing. Submitting invoices through their preferred channel ensures they are received in the correct format and reach the right department immediately.

Follow the Agreed Submission Schedule

High-volume invoicing can overwhelm your own team and your factoring partner if submissions are sporadic. Establish a regular schedule, be it daily or weekly, and stick to it so both sides can manage workload and cash flow predictably.

Communicate Quickly About Disputes or Changes

If a customer disputes an invoice or requests changes, notify your factoring company right away. Proactive communication allows them to work with you on resolution and prevents unexpected delays in payment.

Get Help Managing Bulk Invoices with Factoring

If you’d like to streamline your back-office processes and get paid faster, invoice factoring can help. To be matched with a suitable factoring company, share a few details about your business.

FAQs on High-Volume Invoice Factoring