Is Invoice Factoring Right for Your Bodyshop? Questions to Ask

Running a busy bodyshop means constantly managing costs, navigating lengthy payment terms, and making sure there’s enough working capital on hand to keep things moving, from ordering parts to paying your team. It’s no surprise that cash flow is one of the biggest challenges faced by repairers today. Invoice factoring is one way to ease that pressure by unlocking the value of your unpaid invoices, giving you access to funds faster and more reliably.

But is it the right fit for your business? In this article, we’ll break down how invoice factoring works, explore the benefits, and cover the key questions to ask so you can decide if it’s the right solution for your shop.

Understanding the basics

Rather than waiting for insurers or networks to settle invoices, a factoring company such as ACG can release most of the invoice value to you, often within 24 hours. This provides the cash flow you need to keep the workshop moving while ACG handles the recovery down the line.

Invoice factoring is not a loan, which means no debt, no interest charges and no impact on your credit file. You’re simply unlocking money you’ve already earned, giving you the freedom to operate without borrowing or having the extra hassle of managing the admin. This contrasts with invoice discounting, where you remain responsible for chasing payment. Factoring includes recovery, so chasing payments is no longer your problem.

Fees are always transparent. At ACG we explain the exact cost structure up front, so you’ll know exactly what you’re paying before you commit. It’s a cost-effective alternative to expensive overdrafts, especially when the fee is just a small percentage of the overall invoice value.

Who can benefit & how flexible is it?

Invoice factoring isn’t reserved for large repair groups, it’s also ideal for small to mid-sized bodyshops looking to smooth out operations. Most invoices billed to insurers or networks qualify, and your own credit history isn’t the determining factor. Your customer’s creditworthiness is what counts.

You stay in control of which invoices to factor, when to factor them and how much you unlock. ACG doesn’t enforce minimums or maximums, so you use it as and when to suit your monthly cash flow needs. You’ll also get access to a secure online portal to upload invoices, track funding and monitor payments in real time.

How ACG supports your Bodyshop differently

ACG builds deep relationships within the collision repair sector. We’re active members of NBRA, ABP Club and Bodyshop Magazine, and our teams work daily with insurers and networks. This means smoother communication and fewer delays. Support doesn’t stop after onboarding either, you’ll have contacts within our dedicated Customer Relations Team and Business Development Manager to guide you through every stage. And if your needs change, you can pause or stop factoring at any time, it’s as flexible as you need it to be.

Use factoring to fuel growth, not just survival

Once clients start factoring, many discover it’s more than a short-term fix. It can be a growth engine. Whether it’s expanding your team, investing in new equipment or taking on more work, having predictable working capital gives you the freedom to scale. Case studies from ACG clients show this isn’t theory, it’s how bodyshops are growing today. You can read all our client testimonials on our case studies page.

If delayed payments are holding your bodyshop back, invoice factoring could be a valuable next step. It’s fast, flexible and built to support how your business operates. To learn more, explore our case studies or speak to the experts at ACG today.