Invoice Financing / Factoring at FNB Corporation

FNB Corporation's Invoice Financing and Factoring solution is designed to give businesses immediate access to working capital by converting outstanding invoices into cash. This flexible funding option helps companies of all sizes bridge cash flow gaps, accelerate growth, and stabilize operations without waiting for customer payment terms to elapse. Whether you are a growing small business, an established mid-market firm, or a corporate supplier with seasonal cycles, our invoice financing offering provides a structured, efficient way to monetize receivables and maintain liquidity.

Key Benefits

• Improved cash flow: Access up to a high percentage of invoice value immediately, reducing days sales outstanding and freeing funds for payroll, inventory, and investment.
• Scalable funding: Facility size grows as your sales grow; finance larger volumes without diluting ownership or incurring long-term debt.
• Flexible terms: Choose between recourse and non-recourse factoring, or a hybrid structure, depending on risk tolerance and credit considerations.
• Reduced credit risk: Optional credit protection on select invoices can minimize bad debt exposure and improve predictability of cash flows.
• Operational efficiency: Outsource credit control and collections to experienced teams if desired, reducing administrative burden and allowing management to focus on core business.
• Fast access to capital: Streamlined due diligence and quick funding cycles accelerate liquidity delivery—often within days of approval.

How Invoice Financing / Factoring Works

1. Invoice submission: After delivering goods or services, you submit eligible invoices to FNB Corporation for financing.
2. Advance: FNB advances a percentage of the invoice value—commonly between 70% and 90%—directly to your account.
3. Collections: Either your business or FNB's collections team collects payment from the customer according to the invoice terms.
4. Settlement: When the customer pays, FNB remits the remaining invoice balance to you, minus agreed fees and interest.
5. Repeat access: As invoices are paid and the facility replenishes, you can continue submitting new receivables for financing.

Product Features

• Advance rates: Competitive advance percentages tailored to industry and debtor credit quality.
• Flexible tenor: Short-term financing aligned to invoice maturity dates.
• Currency options: Financing available in multiple currencies for exporters and international sellers (subject to eligibility).
• Receivables eligibility: Configurable criteria for invoice size, debtor creditworthiness, and document completeness.
• Reporting portal: Online dashboard for submitting invoices, tracking advances, and monitoring facility usage in real time.
• Integrated collections: Option to have FNB manage invoicing confirmation and collections under agreed service terms.

Who Should Consider Invoice Financing

Invoice financing is particularly attractive for businesses that invoice customers on net terms and experience cash flow pressure as receivables age. Typical candidates include wholesale distributors, manufacturers, staffing agencies, professional services firms, transportation and logistics providers, and seasonal retailers. Companies that want to avoid long-term borrowing, protect equity, or rapidly scale without waiting for slow-paying clients will find factoring to be an effective liquidity tool.

Eligibility and Documentation

Eligibility is evaluated based on the creditworthiness of your customers (debtors), the quality and age of invoices, and the overall financial profile of your business. Common documentation requirements include recent financial statements, a schedule of receivables, copies of invoices and delivery confirmations, customer purchase orders or contracts, and corporate formation documents. FNB Corporation’s onboarding team works with each client to clarify required materials and expedite approval.

Pricing and Fees

Pricing varies by industry, debtor risk profile, invoice size, and chosen structure (recourse vs. non-recourse). Typical components include an advance fee or discount fee calculated as a percentage of financed invoices, an interest charge for the time funds are outstanding, and minimal setup or administration fees. Transparent fee schedules and scenario illustrations are provided during the proposal stage so clients can evaluate the cost of capital against alternatives.

Risk Management and Compliance

FNB Corporation employs robust underwriting, fraud detection, and credit assessment processes to protect both the lender and its clients. Compliance with regulatory standards and anti-money laundering requirements is integral to our operations. For non-recourse arrangements, we carefully assess debtor creditworthiness and may require credit insurance or third-party guarantees. Where collections are handled by FNB, strict consumer and commercial collections practices are followed.

Technology and Integration

The Invoice Financing product integrates with common accounting platforms and ERP systems to simplify invoice submission and reconciliation. A secure online portal provides visibility into facility utilization, advance history, and aging reports. Automated workflows reduce manual intervention, reduce errors, and accelerate funding cycles.

Use Cases and Examples

A manufacturer with seasonal demand uses factoring to stock inventory ahead of peak season without taking on restrictive debt. A staffing firm bridges payroll gaps when large corporate clients pay on 60–90 day terms. An exporter mitigates currency timing risk by converting approved foreign receivables into working capital in the invoice currency. Across these scenarios, invoice financing maintains supplier relationships and supports predictable growth.

Common Questions

• Will customers know their invoices are factored? Notification practices depend on the agreement. In disclosed factoring, customers are notified and pay FNB directly. In confidential arrangements, collections remain with your business.
• Is factoring the same as a loan? No. Factoring is the sale or pledge of receivables rather than traditional debt; structures and obligations differ accordingly.
• How fast can I access funds? Once approved, many clients receive advances within 24–72 hours of invoice submission.

Getting Started

To explore invoice financing solutions and determine the best structure for your business, FNB Corporation offers a consultative process that includes a needs assessment, facility design, and transparent pricing. Our specialists evaluate receivables, tailor terms to operational realities, and implement onboarding plans that minimize disruption. The result is a dependable liquidity solution that supports working capital needs and enables strategic growth.

FNB Corporation’s Invoice Financing and Factoring product combines financial expertise, flexible structures, and modern technology to help businesses unlock the value of their receivables, reduce cash flow volatility, and seize growth opportunities.

Address Bank: Pittsburgh, Pennsylvania, United States
Bank: FNB Corporation
Headquarters: Pittsburgh
Products: Loans & Credit
Type: Invoice Financing / Factoring