Invoice Financing at Customers Bancorp

Customers Bancorp’s Invoice Financing product is designed to help businesses unlock the working capital tied up in outstanding invoices. By converting unpaid receivables into immediate cash, companies can stabilize cash flow, accelerate growth, meet payroll obligations, and take advantage of supplier discounts without waiting for customers to pay. This solution is tailored for small and midsize enterprises across a range of industries that operate on credit terms and seek flexible, reliable funding that scales with their receivables.

Overview

Invoice Financing at Customers Bancorp offers a streamlined funding mechanism whereby approved invoices are purchased or advanced against by the bank. The facility can be structured as either receivables factoring or invoice discounting depending on the client’s requirements. Factoring involves the bank taking responsibility for collections (full-service option), while invoice discounting allows the business to manage its own collections with confidential funding. Both structures provide a fast, repeatable source of liquidity tied directly to sales activity.

How It Works

1. Application & Assessment: The business submits an application along with recent invoices and customer information. Customers Bancorp evaluates the creditworthiness of the debtor portfolio and conducts underwriting.
2. Facility Setup: Once approved, the bank establishes a credit limit for the account based on eligible receivables and agreed advance rates.
3. Invoice Submission: The client submits invoices for approval. Upon acceptance, funds are advanced—typically between 70% and 90% of invoice value depending on the agreement.
4. Collections & Settlement: When customers pay the invoices, the remaining balance (minus fees and reserved holdback) is remitted to the client. For factoring arrangements, the bank manages collections; for discounting, the client retains control of receivable collections.
5. Repeat Funding: As new invoices are generated and approved, the facility replenishes, providing ongoing working capital aligned with sales volume.

Key Features

• Fast Access to Cash: Rapid approval and disbursement processes to improve liquidity quickly.
• Flexible Structures: Options for disclosed factoring, confidential invoice discounting, or hybrid arrangements.
• Competitive Advance Rates: Tailored advance rates based on industry, customer credit quality, and receivables aging.
• Integrated Reporting: Online portal access for real-time account and invoice status, reporting, and reconciliations.
• Customer Credit Assessment: Professional evaluation of debtor risk to inform limits and terms.
• Customized Terms: Facility terms and pricing customized to business cycles and cash flow needs.

Benefits

Invoice Financing helps businesses convert receivables into predictable cash flow, enabling them to operate more efficiently and pursue growth opportunities without diluting ownership. Common benefits include:

• Improved Cash Flow Management: Closes the gap between invoicing and payment receipt.
• Faster Growth: Frees capital to reinvest in sales, inventory, and operations.
• Stronger Supplier Relationships: Allows timely payment to vendors and potential early-payment discounts.
• Reduced Reliance on Traditional Loans: Financing scales with sales rather than requiring additional term debt.
• Operational Focus: For factoring clients, the bank can handle collections, reducing administrative burden.

Eligibility & Suitability

Invoice Financing suits businesses that have issued commercial invoices to creditworthy customers and need short-term liquidity. Typical eligibility considerations include:

• Established business history with consistent invoicing activity.
• Invoice customers with verifiable creditworthiness and payment history.
• Invoices with clear terms and supporting documentation.
• Appropriate industry risk profile as assessed by the bank.

Startups or companies with high levels of disputed receivables may require alternative financing arrangements or additional underwriting steps.

Pricing & Costs

Pricing for Invoice Financing typically includes an advance fee or interest charge based on the financed amount and the term of the advance, along with service and administration fees. Transparent fee schedules are provided at onboarding and may include:

• Discount/Interest Rate: Charged on the advanced portion for the duration of the financing.
• Service Fees: For account administration, reporting, and collections (if factoring).
• Origination or Setup Fees: One-time charges associated with establishing the facility.
• Reserve/Holdback: Portion retained to cover adjustments, disputes, or chargebacks until final settlement.

Final pricing is determined by receivables quality, volume, debtor concentration, and the selected product structure.

Risk Management & Security

Customers Bancorp employs robust underwriting and ongoing monitoring to manage credit risk. Additional protections include debtor credit checks, concentration limits, and receivables verification processes. For confidentiality-sensitive clients, invoice discounting allows businesses to retain control of collections while still accessing funds. Where appropriate, Customers Bancorp may require documentation, notifications, or security interests to protect both parties’ interests.

Implementation & Integration

The onboarding process is designed to be efficient and business-friendly. Customers Bancorp offers integration support to align the financing facility with existing accounting and invoicing systems. Clients gain access to an online platform for submitting invoices, tracking advances, viewing ledger activity, and downloading statements. Implementation timelines vary based on documentation completeness and integration complexity, but many clients are able to access funding within days of approval.

Use Cases

• Seasonal Businesses: Smooth working capital through peak sales and off-season cycles.
• Rapidly Growing Companies: Finance growth without taking on long-term debt or diluting equity.
• Manufacturers & Distributors: Bridge cash gaps between raw material purchases and customer payments.
• Service Providers: Convert large project invoices into immediate operational capital.

Frequently Asked Questions

Q: How fast can I receive funding?

A: Once approved, funds can be advanced quickly—often within one business day of invoice acceptance—subject to standard verification procedures.

Q: Will my customers know I use invoice financing?

A: That depends on the product. Factoring typically involves notification to debtors, while confidential invoice discounting allows the business to maintain customer relationships without disclosure.

Q: Can any invoice be financed?

A: Eligible invoices are typically those owed by creditworthy commercial customers with clear payment terms and supporting documentation. Pre-approved customers and certain industries may qualify for higher advance rates.

Conclusion

Invoice Financing at Customers Bancorp is a practical, scalable way to transform receivables into working capital, giving businesses the flexibility to manage cash flow, accelerate growth, and focus on core operations. With flexible structures, transparent pricing, and dedicated support, the product is built to meet the needs of firms seeking reliable short-term liquidity aligned with their sales cycle. Explore invoice financing as a strategic tool to strengthen your company’s financial position and support sustained operational success.

Address Bank: West Reading, Pennsylvania, United States
Bank: Customers Bancorp
Headquarters: Wyomissing, Pennsylvania
Products: Business Financing
Type: Invoice Financing