Overview

Invoice financing, also known as factoring, at Old National Bank is a tailored financing product that allows businesses to unlock the value of their outstanding invoices. Instead of waiting 30, 60 or 90 days for customer payments, companies can receive a significant portion of the invoice value up front. This solution helps stabilize operations, cover payroll, seize growth opportunities and manage seasonal fluctuations with predictable liquidity.

How It Works

1. Invoice Submission: You submit eligible invoices to Old National Bank for review.
2. Advance Funding: Upon approval, the bank advances a percentage of the invoice face value—typically a substantial portion—to your business within a short time frame.
3. Collections: Either you or the bank collects payment from your customer, depending on the factoring arrangement chosen (recourse or non-recourse).
4. Final Settlement: After the customer pays, Old National Bank remits the remaining invoice balance to you, minus fees and any previously advanced amount.

Key Benefits

• Immediate cash flow: Reduce days sales outstanding (DSO) and free up working capital tied to receivables.
• Scalable funding: Financing grows with your sales volume — as you invoice more, available financing can increase.
• Predictable operations: Smooth out cash flow swings for payroll, supplier payments and growth investments.
• Focus on growth: Spend less time on collections and more time on core business activities and strategic initiatives.
• Flexible structures: Options for recourse and non-recourse factoring based on risk tolerance and pricing preferences.
• Customized service: Dedicated relationship managers guide onboarding, underwriting and ongoing account management.

Who Benefits Most

Invoice financing is particularly well suited for:

• Small and medium-sized enterprises (SMEs) experiencing rapid growth but facing cash constraints.
• Manufacturers and wholesalers with long receivable cycles.
• Service providers and staffing firms that must meet payroll before client payments arrive.
• Companies with seasonal demand that need working capital to prepare for peak periods.
• Businesses in industries with reliable creditworthy customers, where invoices are predictable and collectible.

Factoring Options

Old National Bank offers a range of factoring arrangements to match business needs:

• Recourse Factoring: Generally lower fees; the business retains some responsibility if a customer fails to pay.
• Non-Recourse Factoring: Provides protection against customer insolvency, transferring credit risk to the bank for eligible invoices.
• Selective or Spot Factoring: Finance individual invoices as needed, offering flexibility without a full-time factoring commitment.
• Full-Service Programs: Comprehensive solutions that include credit checks, collections and reporting for businesses that want an outsourced receivables process.

Eligibility and Underwriting

Underwriting focuses on the creditworthiness of your customers and the quality of your invoicing practices rather than solely on your business history. Typical considerations include the age and composition of receivables, customer concentration, historical payment patterns and contract terms. Old National Bank works with each client to determine the best structure, advance rates and pricing based on business profile and risk characteristics.

Fees and Pricing

Pricing for invoice financing varies by program characteristics: advance rate, invoice age, customer credit quality and whether the arrangement is recourse or non-recourse. Fees generally include a factoring fee expressed as a percentage of the invoice value and may include additional administrative or service charges. Transparent disclosure of costs and a clear explanation of how fees are calculated are part of the onboarding process.

Operational Integration

Old National Bank supports smooth integration with business processes. The bank can work with existing accounting systems and invoicing workflows to minimize disruption. Clients receive regular reporting and access to a relationship manager who helps optimize the program, manage collections, and address questions about funding availability and eligibility.

Risk Management

Factoring transfers some collection risk and can improve balance sheet liquidity. For businesses seeking protection from customer insolvency, non-recourse options are available for eligible receivables. The bank’s underwriting and credit monitoring help identify potential exposure and provide early warning about deteriorating customer payment behavior.

Why Choose Old National Bank

Choosing Old National Bank for invoice financing means partnering with an experienced financial institution that balances flexible funding with prudent underwriting. Clients benefit from personalized service, scalable programs that grow with the business, and an emphasis on clarity and predictable cash flow. The bank’s teams work closely with clients to structure solutions that align with operational needs and long-term objectives.

Getting Started

To begin, businesses typically discuss their receivables profile with a bank representative, provide sample invoices and customer information, and review proposed terms. The process focuses on speed and practicality so qualified businesses can gain access to needed capital without undue administrative burden. Old National Bank supports onboarding, training and ongoing account management to ensure the program delivers the intended cash flow benefits.