Invoice Financing at Eastern Bank

Invoice Financing from Eastern Bank is a flexible funding solution designed to help businesses convert unpaid invoices into immediate working capital. Tailored for small and medium enterprises as well as larger companies with receivables, this product provides predictable cash flow, reduces days sales outstanding (DSO), and supports growth without diluting ownership or taking on long-term debt.

Key Benefits

• Immediate liquidity: Access a significant portion of your outstanding invoice value quickly to cover payroll, inventory, or operating costs.
• Improved cash flow management: Smooth seasonal fluctuations and bridge gaps between invoicing and payment receipt.
• Flexible use of funds: Use proceeds for business growth initiatives, supplier payments, or to seize time-sensitive opportunities.
• No equity dilution: Maintain ownership and control while securing working capital externally.
• Off-balance options available: Depending on the arrangement and accounting treatment, invoice financing can sometimes keep receivables off the balance sheet.

Product Features

Eastern Bank offers multiple approaches to invoice financing, enabling businesses to choose the structure that best fits their needs:

• Invoice factoring: Sell invoices to the bank at a discount in exchange for immediate cash. The bank manages collections and assumes some credit risk depending on the agreement.
• Invoice discounting: Borrow against outstanding invoices while retaining responsibility for credit control and collections. This option keeps the relationship with your customers intact.
• Selective invoice finance: Finance specific invoices rather than an entire ledger, ideal for companies with seasonal or sporadic needs.
• Recourse and non-recourse options: Choose whether the bank can seek repayment from you if a customer defaults (recourse) or assumes credit risk (non-recourse) based on underwriting and customer creditworthiness.
• Advance rates: Typical advance rates vary by sector and customer profile and are set after credit assessment. Advances often range from a substantial percentage of invoice value to tailored arrangements for higher-risk receivables.

Who Should Consider Invoice Financing?

This financing solution is suitable for a wide range of businesses, including:

• Manufacturers and distributors with long payment cycles.
• Service providers and professional firms billing on net terms.
• Companies experiencing rapid growth requiring working capital to fund operations.
• Businesses needing to stabilize cash flow due to late-paying customers or seasonal demand.

Eligibility and Underwriting

Eastern Bank evaluates eligibility based on the quality of receivables, customer credit profiles, and the stability of the borrower’s operations. Key considerations include:

• Age and industry of the business.
• Creditworthiness of invoiced customers.
• Invoice aging and payment history.
• Existing debt and overall financial health.

Documentation typically required includes copies of invoices, customer contracts or purchase orders, recent financial statements, and proof of delivery or completion of services.

Costs and Fee Structure

Costs vary according to product type, risk profile, and service levels. Common fees and charges include:

• Discount or finance fee: A percentage charged against the value of each invoice for the advance provided.
• Service fees: Administration, account maintenance, and collections management fees as applicable.
• Interest or facility charges: Applied to outstanding advances or drawn amounts in line with agreed terms.
• Set-up or onboarding fees: One-time charges for credit assessment and account establishment.

Eastern Bank structures fees transparently, with clear schedules and examples during the proposal stage so you can compare costs to alternative funding options.

How It Works — Simple Process Overview

1. Application and assessment: Submit required documents and invoices for review. The bank conducts credit checks on your customers and assesses your business.
2. Agreement and onboarding: Agree terms, signing a facility agreement that outlines advance rates, fees, and recourse terms.
3. Invoice submission: Upload or deliver approved invoices through the bank’s secure channel or platform.
4. Advance payment: Receive a percentage of the invoice value promptly, typically within one to a few business days.
5. Collections and settlement: When the customer pays, the bank remits the remaining balance to you after deducting fees and any advances, or offsets the outstanding amount against your facility.

Real-World Use Cases

Examples where invoice financing can make a measurable difference:

• A growing distributor uses invoice financing to stock higher volumes of inventory ahead of peak season without diluting ownership.
• A service firm smooths payroll and operating expenses while waiting on long net-60 or net-90 invoices from large corporate clients.
• A manufacturer bridges the gap between raw material purchase and customer payment to maintain production continuity.

Why Choose Eastern Bank?

Eastern Bank combines expertise in trade and receivables financing with personalized service. The bank offers flexible structures, industry-specific underwriting, and operational support to help clients optimize working capital and maintain customer relationships. The emphasis is on creating scalable solutions that evolve with your business.

Getting Started

To explore invoice financing options, prepare a summary of your receivables profile, recent financial statements, and representative invoices. Eastern Bank’s commercial relationship team will assess suitability, propose a tailored facility, and guide you through implementation. Transparent terms and straightforward processes aim to get funding in place quickly so you can focus on growing your business.

Invoice Financing at Eastern Bank is a practical, flexible way to turn receivables into working capital without sacrificing control of your company.