Texas Can Keep Enforcing Its Age Verification Law for Mobile Apps, Supreme Court Says


The Supreme Court on Monday ruled that Texas can, for now, continue enforcing its age verification law, which mandates app stores to verify minors’ ages and secure parental consent before downloading apps or making in-app purchases. 

The Texas App Store Accountability Act, which was signed by Governor Greg Abbott in 2025, is being challenged in two separate lawsuits. One of the plaintiffs is the Consumer and Communications Industry Association, a tech industry trade group that counts Apple and Google among its members. The other is Students Engaged in Advancing Texas, a student advocacy group that uses apps for civic education.

In a one-sentence order, Justice Samuel Alito denied the plaintiffs’ request to pause enforcement of the law while the case is being decided. As with previous legal battles over age verification, this decision will have ramifications on a rising tide of similar proposals across the country — and serves as a blow to free speech advocates working to stop them.

Age verification has become one of the most popular and controversial strategies proposed to keep kids safe while they’re online. The general idea is that if a tech company knows a user’s age, it can ensure that inappropriate content isn’t served to them. 

But free speech experts say that in practice, asking for a user to provide their government ID to prove their age comes with risks. People without government-issued ID cards may needlessly lose access. There are also concerns about tech companies sharing users’ personal data with authoritarian governments wanting to stifle critical speech.

Matthew Schruers, president of the Consumer and Communications Industry Association, said in a statement: “People should not have to turn over personal data to access the internet any more than they should show government identification to enter a bookstore.” 

On July 1, the Fifth Circuit Court of Appeals ruled that the law can remain in effect and enforceable while the court case is being debated. The Supreme Court ruling issued Monday declined to block this motion, so the law remains in effect in Texas. An expedited hearing in the Fifth Circuit is expected in early August.

According to Cameron Samuels, executive director of Students Engaged in Advancing Texas, one of the parties bringing the lawsuit, the Supreme Court is preventing Texans from accessing everyday apps pending a final decision. 

“In the name of protecting children and empowering parents, the App Store Accountability Act only burdens constitutional rights while doing nothing to hold technology companies accountable in the way Texas claims to intend,” Samuels told CNET in a statement. 

The Texas attorney general’s office did not immediately respond to a request for comment.





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Recent Reviews


What Is Invoice Factoring in Plain English?

At its core, invoice factoring (also known as accounts receivable financing) is about selling your invoices to a factoring company in exchange for immediate cash. You’ll usually get 70–90% upfront, then the remainder (minus fees) once your customer pays.

This is not a loan. You’re not creating new debt or taking on monthly repayments. You’re simply trading tomorrow’s receivables for today’s working capital.

👉 Forbes Advisor explains invoice factoring as one of the most practical ways small businesses improve liquidity.


How Does Invoice Factoring Work?

Here’s the play-by-play:

  1. You invoice your customer for goods or services.

  2. Instead of waiting for them to pay, you sell that invoice to a factoring company.

  3. The factoring company advances you 70–90% of the invoice value.

  4. They collect directly from your customer.

  5. When the customer pays, you receive the remaining balance, minus factoring fees.

Example: You invoice a client for $50,000. A factor gives you 85% upfront ($42,500). Your client pays in 45 days. After collecting their fee (say 2%), the factor pays you the rest ($6,500). End result: You didn’t wait 45 days to get paid.

💡 Pro Tip: Pair invoice factoring with a revolving line of credit for maximum flexibility in managing cash flow gaps.


Invoice Factoring vs. Invoice Financing

They sound similar, but there’s a big difference:

Invoice Factoring Invoice Financing
Sell invoices outright Borrow against invoices
Factor collects payment You still collect
Not treated as debt Loan repayment required
Transparent but higher cost Often cheaper but more responsibility

👉 If you prefer to stay in control of collections, invoice financing might work better. But if you just want fast cash and less admin, factoring is the way to go.


Pros and Cons of Invoice Factoring

Pros Cons
✅ Immediate access to working capital ❌ More expensive than bank loans
✅ Based on customer creditworthiness ❌ Customers know factoring is in place
✅ No new debt or repayments ❌ Limited to B2B invoices
✅ Supports cash flow management ❌ Recourse factoring = you take the risk

💡 Pro Tip: If you’re worried about non-paying customers, look for non-recourse factoring. It costs more, but the factor—not you—takes the hit if your client defaults.


Who Uses Invoice Factoring?

Certain industries rely heavily on factoring because slow-paying customers are the norm. Top sectors include:

  • Trucking & logistics: Carriers often wait 30–90 days for brokers or shippers to pay. Factoring ensures they cover fuel and payroll immediately.

  • Staffing agencies: Weekly payroll but client invoices that pay monthly? Factoring bridges that gap.

  • Construction & subcontracting: Payment delays are common due to project milestones. Receivables financing through construction business loans keep crews running.

  • Wholesale & manufacturing: Large-volume orders often come with long terms. Factoring maintains liquidity.

  • Marketing & creative agencies: Agencies billing retainers or project-based fees often use factoring to smooth out revenue cycles.

👉 Fun fact: Staffing and trucking together account for the majority of factoring volume in the U.S.


How to Choose the Right Factoring Company

Not all factoring companies are created equal. Before signing a deal, compare:

  • Fees & transparency: Is it a flat fee or tiered by days outstanding?

  • Advance rates: Some offer 70%, others 95%.

  • Contract length: Month-to-month is flexible; year-long contracts can trap you.

  • Industry expertise: A factor that knows trucking ≠ one that specializes in creative agencies.

  • Non-recourse vs. recourse: Decide how much risk you want to carry.

For a deeper look, read Wolters Kluwer’s guide on factoring and cash flow.


Costs & Fees of Factoring Receivables

Typical fees run 1–5% per month depending on invoice size, industry, and risk. The longer your client takes to pay, the higher the fee.

Two key costs to look for:

  1. Factoring Fee (Discount Rate): Percentage of the invoice charged.

  2. Reserve Hold: Portion of the invoice held back until payment clears.

💡 Pro Tip: Always check if the factor files a UCC-1 lien. This filing can block you from getting other types of financing until the lien is released.


Real Case: Startup Scales With Invoice Factoring

A small tech startup wanted to grow but didn’t want to take on venture capital or debt. By factoring their invoices, they accessed quick cash, hired aggressively, and scaled operations. Within three years, they sold for $35 million—without giving up equity.

That’s the power of cash flow management through factoring.


Alternatives to Invoice Factoring

Invoice factoring is great—but it’s not the only way to fund your business. Alternatives include:

  • SBA 7a loans: Lower cost, but longer approval timelines. 

  • Business credit cards: Fast but can carry high interest.

  • Lines of credit: Flexible but harder to qualify for.

  • Revenue-based financing: Funding based on your sales.

💡 Pro Tip: Use factoring for short-term cash flow gaps, but consider long-term financing for expansion projects.





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