Invoice Financing / Factoring in BankUnited

Invoice financing, commonly known as factoring, is a flexible working capital solution that unlocks the cash tied up in outstanding customer invoices. BankUnited’s Invoice Financing / Factoring product is designed for growing businesses that need predictable cash flow, want to shorten their cash conversion cycle, or require immediate funds to cover payroll, inventory, expansion, or one-off opportunities. This product pairs the strength and security of a full-service financial institution with tailored financing options that align to seasonal cycles, client payment behavior, and industry specifics.

Product overview

At its core, BankUnited’s factoring facility purchases your eligible accounts receivable and advances a significant portion of the invoice value immediately. Once your customer pays, the remaining balance (less fees) is remitted to you. The solution can be structured on a recourse or non-recourse basis, as well as integrated with credit protection or collections support, giving businesses flexibility in managing credit risk and operational burden.

How it works

1. Invoice submission: Submit eligible invoices to BankUnited for review and approval.
2. Advance funding: Receive an advance—typically a percentage of the invoice amount—within 24 to 48 hours after documentation is accepted.
3. Collections & payment: Either BankUnited collects the payment directly or you handle collections according to the servicing arrangement.
4. Reserve settlement: After the invoice is paid, BankUnited remits the remaining balance to you, minus fees and any previously agreed deductions.

Key benefits

• Improved cash flow: Turn unpaid invoices into working capital immediately, reducing reliance on overdrafts or longer-term debt.
• Predictability: Smooth seasonal peaks and troughs in revenue by converting accounts receivable into reliable liquidity.
• Scalability: Financing capacity grows with your sales—no need to reapply for credit every time you take on new business.
• Outsourced collections (optional): Free up internal resources by opting for BankUnited to manage invoicing follow-up and collections.
• Risk management options: Choose recourse or non-recourse factoring and consider credit protection to mitigate buyer default exposure.
• Fast approval: Streamlined application and onboarding accelerate access to capital compared with many traditional lending products.

Features & options

• Advance rates: Competitive advance percentages based on industry, customer creditworthiness, and invoice terms.
• Flexible terms: Short-term, transaction-by-transaction, or committed lines to suit operational requirements.
• Dual servicing models: Full-service factoring with collections handled by the bank or confidential arrangements where your team maintains customer relationships.
• Credit assessment: Optional credit checks and buyer monitoring to support risk-based pricing and decisioning.
• Integrated reporting: Transparent, periodic reporting to help reconcile and forecast cash flow and borrowing activity.
• Multi-currency support: Available for international trade receivables in select cases, subject to terms and local regulations.

Eligibility & required documentation

BankUnited works with small to mid-size enterprises across a range of industries, including manufacturing, distribution, staffing, professional services, and trade. Typical eligibility considerations include the quality of your customer base, invoice aging, average invoice size, and your business’s operational stability.

Standard documentation requests may include:

• Recent accounts receivable aging report
• Copies of invoices to be financed
• Customer purchase orders or contracts
• Business financial statements and bank statements
• Corporate formation documents and ownership identification

Common use cases

• Filling working capital gaps: Maintain payroll and vendor payments when client terms extend 30, 60, or 90 days.
• Supporting growth: Bridge the funding needs caused by rapid order intake without diluting ownership or taking on long-term debt.
• Seasonal businesses: Build liquidity before peak seasons and conserve capital in slower months.
• Financing international receivables: Convert export invoices into local currency liquidity with appropriate structures.
• Banking relationship enhancement: Complement existing credit lines for more resilient liquidity management.

Pricing & structure

Pricing is customized based on factors such as the creditworthiness of your buyers, the advance rate, the volume of receivables, and whether the facility is recourse or non-recourse. Fees typically include an advance fee or discount rate and may include administrative or servicing charges. BankUnited offers competitively structured programs aimed at delivering transparent terms and predictable costs aligned with client cash flow goals.

Application process

The application process is designed to be efficient and straightforward:

1. Initial consultation to understand business needs and receivables profile.
2. Documentation submission and credit underwriting.
3. Agreement negotiation, including advance rates, fees, and servicing model.
4. Onboarding and system integration for invoice submission and reporting.
5. Ongoing account management with periodic reviews to adjust capacity as sales grow.

Why choose BankUnited for factoring?

BankUnited combines institutional strength with a client-focused approach. Businesses benefit from dedicated relationship managers, flexible structuring options, and professional credit and collections capabilities. The product is designed to be adaptable—supporting both conservative risk profiles and more aggressive growth strategies—while delivering reliable liquidity that aligns to operational realities.

Risk management & support

Effective invoice financing balances liquidity and risk. BankUnited works with clients to assess buyer credit quality, set appropriate advance thresholds, and implement controls that reduce exposure to nonpayment. In addition, optional credit insurance and receivables monitoring can be integrated to further lower risk and protect margins.

Frequently asked questions

Will factoring change my relationship with customers?

Depending on the servicing model you select, customers may be notified of the assignment. Confidential factoring options are available to preserve customer-facing relationships when suitable.

Can I factor invoices from all customers?

Eligibility depends on customer creditworthiness and the nature of the receivable. Typically, invoices owed by financially stable businesses or governmental entities are the most favorable.

Is factoring more expensive than a bank line of credit?

Factoring can be more cost-effective for companies whose working capital needs scale with sales because fees are tied to receivables usage rather than a fixed interest-bearing credit line. Comparative costs depend on structure, volume, and buyer credit risk.

Invoice Financing / Factoring at BankUnited offers a pragmatic path to faster cash conversion, reduced administrative burden, and flexible funding that grows with your receivables. Whether you need short-term liquidity to stabilize operations or a scalable financing platform to support expansion, this solution provides tailored support to help you convert sales into working capital with confidence.

Address Bank: Miami Lakes, Florida, U.S., United States
Bank: BankUnited
Headquarters: Miami Lakes, Florida
Products: Loans & Credit
Type: Invoice Financing / Factoring