Invoice Financing / Factoring in Associated Banc‑Corp

Unlock the working capital trapped in unpaid invoices and accelerate growth with Associated Banc‑Corp’s invoice financing and factoring solutions. Designed for small to mid‑sized businesses across manufacturing, distribution, staffing, professional services and other B2B sectors, this product converts receivables into immediate cash so you can meet payroll, purchase inventory, invest in sales and marketing, and take advantage of time‑sensitive opportunities without diluting equity or taking on long‑term debt.

What is Invoice Financing and Factoring?

Invoice financing is a flexible financing solution where outstanding invoices are used as collateral to obtain cash advances. Factoring goes a step further: Associated Banc‑Corp purchases eligible receivables outright (or provides non‑recourse or recourse options), advances a high percentage of invoice value, and handles collections on your behalf if requested. Both approaches free up cash flow, shorten payment cycles, and reduce the administrative burden of accounts receivable management.

Key Benefits

• Immediate Liquidity: Access up to 70–90% of invoice value within one business day to pay suppliers, staff or fund growth initiatives.
• Predictable Cash Flow: Turn irregular or extended payment cycles into reliable working capital, smoothing seasonality and growth swings.
• Credit Protection Options: Choose recourse or non‑recourse factoring to balance cost and risk mitigation when buyer creditworthiness is a concern.
• Outsourced Collections: Reduce time spent on receivables management; rely on proven collection practices while preserving customer relationships.
• No Equity Dilution: Preserve ownership and control—invoice financing is a balance‑sheet solution that does not require selling equity.
• Scalable Facility: As your sales grow, the financing line typically grows with your receivables, providing a variable, demand‑driven source of capital.

How It Works — Simple Process

1. Apply & Qualify: Submit basic company information, aging reports, customer lists and sample invoices. Associated Banc‑Corp evaluates your receivables, buyer credit profiles and industry risk.
2. Program Setup: Agree on advance rates, reserve percentage, fees, and whether the arrangement is recourse or non‑recourse. The bank establishes the factoring agreement and onboarding procedures.
3. Invoice Submission: Submit approved invoices electronically or via a dedicated portal. Associated Banc‑Corp verifies the invoices and confirms eligible amounts.
4. Receive Funding: Get an upfront advance on eligible invoices—typically a large percentage of the invoice amount—then receive the remainder (less fees) when the buyer pays.
5. Collection & Payment: Associated Banc‑Corp manages collections if included in the agreement. When buyers pay, remaining reserves are released to you according to the contract terms.

Who Should Consider This Service?

Invoice financing and factoring are ideal for companies that sell on net terms and experience gaps between payables and receivables. Typical candidates include:

• Distributors and wholesalers with long payment terms from retailers
• Service firms and staffing agencies that pay employees before clients settle invoices
• Manufacturers managing raw material costs ahead of customer payments
• Seasonal businesses needing predictable cash flow during off‑peak periods
• Fast‑growing firms seeking working capital that scales with sales

Pricing and Structure

Pricing for invoice financing and factoring is competitive and tailored to the size of your receivables, buyer credit quality, industry, and chosen structure (recourse vs. non‑recourse). Typical cost components include:

• Advance Rate: The percentage of invoice value advanced upfront.
• Discount/Factor Fee: A fee based on invoice value and payment terms—often quoted as a percentage per 30 days outstanding.
• Service Fees: Administrative or account fees for onboarding, credit checks and collections services.
• Reserve: A holdback retained until invoice payment to cover disputes or deductions, released per contract terms.

Associated Banc‑Corp structures fees transparently and works with clients to model net proceeds and compare alternatives to ensure the program supports profitability and cash flow goals.

Risk Management and Compliance

Effective factoring includes rigorous credit underwriting of your buyers and ongoing monitoring of receivable quality. Associated Banc‑Corp combines industry expertise with compliant documentation, fraud prevention measures and clear reporting. Options for non‑recourse accounting help transfer buyer default risk to the bank where appropriate, while recourse programs may offer lower rates for businesses comfortable retaining credit risk.

Why Choose Associated Banc‑Corp?

Businesses choose Associated Banc‑Corp for a combination of regional expertise, personalized service and scalable product design. Experienced relationship teams work with finance leaders to craft programs that integrate with accounting systems, provide clear reporting and support strategic objectives. Whether you need short‑term liquidity, a long‑term working capital solution or support during rapid growth phases, Associated Banc‑Corp offers flexible options and practical guidance.

Common Use Cases

• Bridging payroll cycles for staffing firms paying employees weekly but billed monthly by clients.
• Funding inventory purchases to support large purchase orders from key retailers.
• Stabilizing cash flow during seasonal downturns while maintaining vendor relationships.
• Freeing up capital to invest in new product development or geographic expansion.

Getting Started

To evaluate invoice financing or factoring for your business, prepare recent accounts receivable aging reports, a list of top customers, typical invoice terms and current financing arrangements. Associated Banc‑Corp will analyze your receivables profile, estimate available advance capacity and propose a program aligned with your operational rhythm and growth objectives.

Final Thoughts

Invoice financing and factoring with Associated Banc‑Corp is a practical, scalable way to turn receivables into working capital, reduce administrative burden and support strategic growth without sacrificing ownership. With customizable structures, transparent pricing and dedicated support, this solution empowers businesses to manage cash flow proactively and pursue opportunities confidently.

Address Bank: Green Bay, Wisconsin, U.S.
Bank: Associated Banc-Corp
Headquarters: Green Bay, Wisconsin
Products: Loans & Credit
Type: Invoice Financing / Factoring