Invoice Financing / Factoring at Customers Bancorp

Customers Bancorp offers a tailored Invoice Financing and Factoring solution designed to help businesses unlock the cash tied up in unpaid invoices. This working capital product converts receivables into immediate funds so companies can stabilize cash flow, meet payroll, invest in growth, and take advantage of supplier discounts without waiting for client payment terms to elapse. Our program is flexible, scalable, and structured to align with your business cycle and customer profiles.

What is Invoice Financing and Factoring?

Invoice Financing is a broad term for lending products that use outstanding invoices as collateral. Factoring is a specific form of invoice financing in which Customers Bancorp purchases your eligible receivables at a discount and assumes responsibility for collecting payment, or provides non-recourse options where credit risk is transferred under agreed conditions. Both approaches accelerate cash conversion and reduce the uncertainty and administrative burden of accounts receivable management.

How Customers Bancorp’s Program Works

• Qualification: We assess the creditworthiness of your customers and the quality of invoices rather than just your business history.
• Advance: Upon acceptance, we advance a percentage of the invoice value (typically 70–90%) to your account, providing near-immediate liquidity.
• Collections & Reserve: The remaining balance is held in reserve to cover fees and potential adjustments; once the invoice is paid, the reserve minus fees is remitted to you.
• Ongoing Facility: Facilities can be structured as single-invoice transactions or revolving lines that grow with your receivables volume.

Key Benefits

• Improved Cash Flow: Convert unpaid invoices to working capital instantly and maintain predictable operations.
• Faster Growth: Reinvest liquidity into sales, inventory, marketing, or capital expenditures without diluting ownership.
• Flexible Funding: Funding scales with your invoicing volume; seasonal and rapid-growth businesses gain adaptability.
• Reduced Administrative Burden: Optional collection services reduce time spent on chasing payments and credit management.
• Credit-Based Financing: Approval emphasizes your customers’ credit profiles, often enabling businesses with limited collateral to qualify.

Who Should Consider This Solution?

Invoice Financing and Factoring are well-suited for B2B companies that invoice on terms of 30, 60, or 90 days, including manufacturers, distributors, staffing firms, logistics providers, professional services, and wholesalers. Businesses experiencing rapid growth, seasonal demand, or those needing working capital to bridge timing gaps between payable and receivable cycles will find this product particularly valuable.

Pricing and Structure

Customers Bancorp provides competitive and transparent pricing based on several factors: the average invoice size, credit quality of your customers, industry norms, advance rate, and whether the facility is recourse or non-recourse. Fees typically include an advance fee or discount, a service or management fee, and any applicable interest on the drawn balance. Detailed terms are crafted in consultation with your relationship manager to match cash flow needs and cost expectations.

Risk Management and Safeguards

Effective risk management underpins our factoring services. We perform credit due diligence on your customers, monitor concentration risk, and use established collection protocols. For non-recourse arrangements, we clearly define exclusions to protect both parties. Our underwriting and portfolio monitoring help minimize defaults and preserve the integrity of the facility while enabling clients to grow confidently.

Onboarding and Implementation

The onboarding process is designed for speed and clarity. After an initial consultation, we perform a credit review, set facility limits, and agree on operational processes such as invoice submission, verification, and remittance timing. Technology-enabled workflows streamline documentation, approvals, and reporting so funds are available quickly and invoicing continues with minimal disruption.

Reporting and Technology

Customers Bancorp provides clear reporting and dashboard tools that give real-time visibility into funded invoices, reserve balances, fees, and payment status. Integration options are available to connect with your accounting systems and ERP platforms to automate invoice delivery and reconcile funding events efficiently.

Why Choose Customers Bancorp?

Choosing Customers Bancorp means partnering with a financial institution that combines industry expertise with flexible product design and responsive service. We focus on building structured financing solutions that align with your business model, maintain transparent fee structures, and provide pragmatic risk controls. Whether you need short-term liquidity or a long-term working capital strategy, our teams collaborate to deliver practical results.

Common Use Cases

• Bridging cash flow gaps between invoice issuance and payment.
• Financing growth initiatives without taking on traditional loans.
• Supporting seasonal inventory purchases and staffing fluctuations.
• Simplifying receivables administration and outsourcing collections.

Final Notes

Invoice Financing and Factoring through Customers Bancorp is a pragmatic solution for businesses seeking to convert receivables into reliable working capital while mitigating payment risk and administrative overhead. Our customized approach ensures the facility supports your operational cadence and growth ambitions, backed by clear terms and professional credit oversight. Explore how invoice financing can stabilize your cash flow and create capacity for strategic investment.

Address Bank: West Reading, Pennsylvania, United States
Bank: Customers Bancorp
Headquarters: Wyomissing, Pennsylvania
Products: Loans & Credit
Type: Invoice Financing / Factoring