Product Overview

Invoice Financing / Factoring in BOK Financial Corporation is a financing option designed for businesses that sell goods or services on credit terms and need faster access to cash tied up in accounts receivable. Instead of waiting 30, 60 or 90 days for customers to pay, a company can sell its eligible invoices to BOK Financial and receive a significant portion of the invoice value up front. This solution improves liquidity, reduces the need for short-term borrowing, and enables companies to focus on operations, growth and customer service rather than collections.

Key Benefits

• Faster access to cash: Convert outstanding invoices into immediate capital to meet payroll, purchase inventory, or invest in growth initiatives.
• Predictable cash flow: Smooth out fluctuations in receivables cycles and create a dependable source of working capital.
• Improved balance sheet management: Reduce reliance on revolving credit lines and avoid stretching trade payables.
• Outsourced receivables management: Optional credit checks, collections and remittance processing help reduce administrative burden and bad-debt exposure.
• Scalable financing: As your sales grow, financing capacity can expand because it is tied to invoice volume rather than fixed loan limits.

How It Works

1. Submit invoices: Your company delivers qualifying customer invoices to BOK Financial for review and purchase.
2. Advance payment: BOK Financial advances a portion of the invoice amount—commonly between 70% and 90%—within a short time frame after approval.
3. Customer payment: The customer pays the invoice according to the original terms directly to BOK Financial or to a designated account, depending on the agreement.
4. Reserve release: Once the invoice is collected, BOK Financial remits the remaining balance to your company, minus fees and any reserves held.
5. Repeat: Continue delivering invoices as needed; the program provides ongoing liquidity linked to your receivables turnover.

Types of Invoice Financing

BOK Financial may offer a range of structures to suit different business needs, including:

• Recourse factoring: The company retains some responsibility for uncollected invoices, often with lower fees.
• Non-recourse factoring: BOK Financial assumes the credit or collection risk for approved customers, typically at a higher fee and subject to credit approval.
• Selective or spot factoring: Finance individual invoices as needed without committing the entire receivables ledger.
• Full-service factoring: Combines financing with receivables administration, credit management and collection services.

Who Should Consider Invoice Financing

Invoice Financing / Factoring in BOK Financial Corporation is suitable for businesses that:

• Sell on net terms to creditworthy customers and experience extended payment cycles.
• Are growing quickly and need working capital to seize new opportunities.
• Have seasonal demand and require temporary liquidity to support operations.
• Prefer predictable working capital tied to sales rather than taking on additional debt.
• Wish to outsource collections and credit checks to reduce administrative workload.

Application and Eligibility

Eligibility typically depends on the creditworthiness of your customers, the quality and age of invoices, and your company’s industry and financial profile. Common requirements include a history of B2B sales, verifiable invoices and purchase orders, and customers with established payment histories. The application process often involves submitting recent accounts receivable aging, customer information, and financial statements for underwriting.

Fees and Pricing Considerations

Fees for invoice financing reflect several factors, including the credit risk of your customers, the structure (recourse vs. non-recourse), the advance rate, and the turnover period of invoices. Typical costs include a discount fee or factor rate applied to invoice value and any additional administrative or service fees. Transparent discussions during underwriting will clarify how fees are calculated and how they compare to alternatives like lines of credit or term loans.

Risks and Mitigations

• Customer concentration: Heavy reliance on a small number of clients can limit financing capacity; diversification reduces risk.
• Customer credit deterioration: Non-payment may trigger recourse obligations in certain arrangements; choosing the right product structure can mitigate exposure.
• Cost considerations: Fees may be higher than traditional lending in some cases; weigh financing costs against the benefits of immediate liquidity and growth potential.
• Operational integration: Implementing a factoring program requires coordination with billing and accounting systems; proper setup minimizes disruption.

Why Choose Invoice Financing with BOK Financial

BOK Financial’s approach combines tailored financial solutions with industry knowledge and service capabilities designed to support mid-market and growing businesses. Invoice Financing / Factoring can be structured to match seasonal cycles, expansion plans and working capital needs while delivering professional receivables management that helps protect margins and customer relationships. The program’s flexibility supports a wide range of industries and scales as sales increase, turning invoices into a predictable source of funding.

Frequently Asked Questions

How quickly can funds be available?

Depending on underwriting and documentation, advances can be available within days after invoice submission and approval, offering substantially faster access to cash than waiting for customer payments.

Will my customers know I am using factoring?

Notification practices vary by agreement. In some programs, customers are notified to pay the factor directly; selective or confidential arrangements may allow more discretion.

Does factoring affect my credit?

Invoice financing is based primarily on customer credit rather than the seller’s credit. It can reduce the need for additional debt but should be discussed with your financial advisor to understand any implications for your balance sheet and lending relationships.