Alternative Working-Capital Solutions
Receivables and Invoice Factoring
Working-capital solutions that may convert eligible commercial receivables into near-term liquidity while customers complete their payment cycles.
Businesses can be profitable and still experience a cash-flow gap when customers pay on extended terms. Receivables financing or invoice factoring may provide an advance against eligible business-to-business invoices, subject to customer quality, documentation, concentration, disputes, dilution, fees, and approval.
How Receivables Financing Generally Works
- A business delivers goods or services and issues an eligible commercial invoice.
- The financing provider reviews the invoice, supporting documentation, and account debtor.
- If approved, the provider advances an agreed portion of the eligible receivable.
- The customer pays according to the applicable arrangement.
- The remaining balance, less agreed fees, reserves, and adjustments, is settled.
The legal structure can vary. Some programs involve a purchase of receivables; others are secured financing arrangements. Businesses should review the legal, accounting, customer-notification, recourse, and fee provisions in the definitive documents.
What Determines Fit
Account Debtors
Credit quality, payment history, customer concentration, industry exposure, and the reliability of the underlying obligors.
Invoice Eligibility
Proof that goods or services were delivered, aging, disputes, offsets, returns, dilution, and contractual payment terms.
Business Profile
Historical revenue, margins, cash-flow needs, operational controls, documentation, and financial reporting.
Existing Obligations
Liens, borrowing arrangements, intercreditor issues, tax obligations, and other claims affecting the receivables.
Compare Total Economics, Not Only the Headline Fee
Evaluate the advance rate, factoring or discount fee, minimums, reserves, recourse, contract term, termination provisions, concentration limits, ineligible receivables, reporting obligations, customer-payment process, and all potential adjustments. Faster access to cash can be valuable, but it must be weighed against cost, customer experience, and operational fit.
Information to Provide
Prepare an accounts-receivable aging report, customer concentration, sample invoices and contracts, proof of delivery or performance, historical financials, current debt and liens, tax status, and a clear explanation of the working-capital need.
Explore a Receivables Financing Review
Share your receivables profile, payment cycles, customer concentration, requested capital, and planned use of proceeds.
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Share the property, project stage, capital request, and proposed repayment plan.
Important Lending Disclosure
This page is for general informational purposes and does not constitute a commitment to finance receivables or an offer of specific terms. Eligibility, structure, advance rates, reserves, recourse, pricing, fees, customer notification, reporting, and closing requirements vary and remain subject to diligence, approval, and definitive documentation. Trust metrics are management-supplied and should be reviewed with current company materials.