Receivables Financing & Factoring
Explore working capital tied to eligible invoices
Selling on credit can leave cash tied up between delivery and payment. Receivables financing and factoring offer different ways to access working capital against eligible invoices. Trade Credit Group helps businesses explore options through financing providers; we do not promise an advance or a credit approval.
Compare factoring with a receivables-backed facility
Factoring generally involves selling eligible receivables to a factor. A receivables-backed loan generally uses eligible receivables as collateral. Who collects payments, who bears nonpayment risk, and how customers are notified depend on the agreement. Recourse and non-recourse structures require careful review because neither label alone explains every obligation.
Look beyond the advance percentage
Compare reserves, fees, interest where applicable, minimum charges, contract length, termination provisions, customer concentration limits, and eligible invoice aging. Disputed invoices, offsets, or overdue balances can affect eligibility. A provider may also assess your buyers, contracts, delivery evidence, and existing liens.
Bring the information providers need
Prepare receivables and payables aging, financial statements, sample invoices, customer details, monthly funding needs, and information about existing financing. We help frame the discussion and coordinate introductions. Credit insurance may complement a structure, but any assignment or loss-payee arrangement requires agreement with the insurer and finance provider.