Guides › Companies that buy unpaid invoices: selling B2B receivables
Companies that buy unpaid invoices: selling B2B receivables
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Short answer: Three kinds of companies buy or take on unpaid business invoices. Factoring companies advance cash against current invoices. Debt buyers purchase seriously overdue or charged-off receivables outright at a discount. Commercial collection agencies work on contingency instead. Which fits depends on how old the invoices are and how creditworthy your customers are.
What is your receivables portfolio worth?
Free, confidential valuation. Summary data only, mutual NDA before any documents, and no obligation to sell.
What is the difference between factoring and selling bad debt?
| Option | Invoice status | How you are paid |
|---|---|---|
| Factoring | Current, not yet due or recently due | Advance now, remainder (minus fee) when the customer pays |
| Debt sale | Seriously past due or written off | One-time lump sum; the buyer owns the claim |
| Contingency collection | Past due | You keep ownership; the agency keeps a share of what it recovers |
Does the FDCPA apply to business debt?
No. The federal Fair Debt Collection Practices Act defines "debt" as an obligation for personal, family or household purposes, so purely commercial (B2B) debts fall outside it (15 U.S.C. § 1692a(5)). State collection-agency licensing laws can still apply to whoever collects, so confirm the rules in each debtor's state.
How much will a buyer pay for unpaid invoices?
We found no public, verified benchmark for B2B receivable prices, and our pricing guide lists them as "no public benchmark." Buyers look at:
- Days past due and whether the debtor business is still operating.
- Documentation: signed contracts, purchase orders, proof of delivery, invoices.
- Disputes, offsets and personal guarantees.
- Concentration: one large debtor or many small ones.
How do you sell unpaid invoices, step by step?
- List the invoices: debtor, amount, due date and any disputes.
- Gather contracts and proof of delivery.
- Request a valuation with summary data.
- Compare a sale offer with contingency terms.
- Sign a purchase and assignment agreement, then notify the debtor if the agreement requires it.
What is your receivables portfolio worth?
Free, confidential valuation. Summary data only, mutual NDA before any documents, and no obligation to sell.
What else do sellers ask?
Can I sell a single unpaid invoice?
Some buyers take single invoices, but most prefer volume. Factoring companies often buy individual current invoices.
Can I sell business debt to a collection agency?
Some commercial agencies buy accounts, but most work on contingency. A sale gives cash now; contingency may recover more but takes longer.
Is selling receivables the same as factoring?
No. Factoring covers current invoices, usually with an advance and a reserve. A debt sale is a one-time purchase of past-due or written-off receivables.
Does the FDCPA apply when collecting B2B invoices?
No. The FDCPA covers consumer debts only (15 U.S.C. § 1692a). State licensing laws may still apply.
Where should you go next?
- Business receivables seller guide
- Selling vs. contingency collection
- Price range estimator
- Request a free valuation
General information only, not legal, tax or accounting advice. Price figures are historical public benchmarks, not offers. Verify with counsel.