Why choose invoice financing?

• Improve cash flow instantly: Receive a large portion of your invoice value within 24–72 hours, reducing gaps between invoicing and payment.
• Maintain growth momentum: Scale operations, fulfill larger orders, and expand into new markets with predictable working capital.
• Flexible funding: Use financing as needed — fund seasonal peaks or growth surges without long-term debt commitments.
• Preserve credit lines: Supplement or replace bank lines of credit and avoid diluting ownership via equity financing.
• Reduce administrative burden: Optional receivables management and collections support streamline accounts receivable operations.

How KeyCorp's invoice financing works

1. Submit invoices: You send approved invoices from creditworthy customers to KeyCorp.
2. Verification and advance: KeyCorp verifies the invoices and advances up to a predetermined percentage of their value.
3. Collections: Depending on the service model, either you or KeyCorp collects payment when invoices become due.
4. Final settlement: After collecting the invoice amount, KeyCorp remits the remaining balance to you minus fees and any interest.

This streamlined sequence turns outstanding receivables into working capital with transparent terms and clear timelines.

Types of solutions available

• Recourse factoring: More cost-effective; you retain responsibility for uncollected invoices and benefit from lower fees.
• Non-recourse factoring: Greater protection; KeyCorp assumes credit risk on eligible receivables to protect your cash flow from customer defaults.
• Selective or spot factoring: Finance specific invoices as needed without committing the entire ledger to a facility.
• Whole ledger factoring: A comprehensive facility covering all invoices for consistent funding and simplified administration.
• Invoice discounting: Confidential financing where you retain control of collections while accessing funds against receivables.

Who benefits most

KeyCorp's invoice financing is ideal for businesses that:

• Sell to corporate customers or government entities with extended payment terms.
• Experience seasonal demand or rapid growth that outpaces cash inflows.
• Need predictable cash flow to manage payroll, inventory, or supplier payments.
• Prefer a flexible financing solution without additional long-term debt on the balance sheet.

Key features and advantages

• Fast approval and funding: Streamlined onboarding and rapid advances so you can access funds quickly.
• Customizable terms: Facility size, advance rates, and recourse options tailored to your business profile and risk tolerance.
• Transparent pricing: Clear fee structures and competitive rates with no hidden charges.
• Dedicated support: Experienced account managers help optimize your receivables strategy and provide ongoing service.
• Scalable capacity: As your sales grow, KeyCorp's funding capacity can expand to meet increased working capital needs.

Application and qualification

Qualification focuses primarily on the strength of your receivables and the creditworthiness of your customers rather than your business history alone. Typical considerations include invoice age, customer payment profiles, concentration risk, and your industry sector. The application process is efficient: submit a brief business overview, recent invoices, and basic financials. KeyCorp evaluates accounts receivable and sets an advance rate, facility limit, and pricing tailored to your circumstances.

Managing risk and compliance

KeyCorp employs rigorous underwriting and monitoring to ensure a secure financing relationship. Credit checks on obligors, routine portfolio reviews, and fraud detection protocols protect both parties. With optional non-recourse coverage, businesses can further mitigate the impact of customer insolvency. Regulatory and contractual compliance is embedded in every arrangement to preserve transparency and trust.

Real-world use cases

Manufacturers use factoring to finance raw materials for large orders while waiting for progress payments. Wholesalers smooth seasonal inventory purchases without sacrificing supplier relationships. Service providers bridge long billing cycles and invest in talent to deliver higher-margin contracts. Across sectors, invoice financing unlocks capital tied to growth, enabling strategic investments without disrupting operations.

Common questions

Will customers know I'm using factoring? Depending on the product, factoring can be confidential (invoice discounting) or disclosed (traditional factoring). KeyCorp helps you choose the right approach.

How quickly can I start funding? Many clients receive advances within 24–72 hours after invoice verification and account setup.

Are there long-term commitments? Options range from single-invoice financing to ongoing facilities. KeyCorp structures agreements to match your cash flow and operational preferences.