Invoice Financing / Factoring at South State Bank

South State Bank’s Invoice Financing (also known as Factoring) is a working capital solution designed to convert unpaid customer invoices into immediate cash. Tailored for growing businesses that need predictable cash flow, the product enables companies to accelerate collections, smooth operations, and pursue new opportunities without waiting for payment terms to elapse. Whether you are a manufacturer, distributor, service provider, or supplier, our invoice financing program offers flexibility, speed, and professional receivables management.

What is Invoice Financing?

Invoice Financing is a financing arrangement in which South State Bank advances a percentage of the value of your outstanding invoices, typically up to a contractually agreed limit. The bank either purchases the receivables (factoring) or lends against them (invoice discounting), providing immediate liquidity while the receivables remain outstanding. Once your customer pays the invoice, you receive the remaining balance minus fees.

Key Benefits

• Immediate cash flow: Accelerate access to funds tied up in receivables to meet payroll, purchase inventory, or invest in growth.
• Predictable working capital: Smooth out seasonal fluctuations and reduce reliance on expensive short-term borrowing.
• Outsourced collections: Optional accounts receivable administration and collections services free your team to focus on core operations.
• Flexible funding: Scale financing in line with sales: as your billings grow, available funds can increase accordingly.
• Credit protection options: Choose between recourse and non-recourse structures depending on risk tolerance and pricing preferences.
• Improved supplier relationships: Pay suppliers on time or take advantage of early payment discounts using advanced cash.

How It Works

1. Application and approval: You submit information about your business, customers, and invoices. South State Bank evaluates creditworthiness of your customers and establishes a credit facility.
2. Invoice submission: Submit eligible invoices through a secure portal or by agreed process.
3. Advance funding: Receive an immediate advance, typically between 70% and 90% of the invoice face value, depending on the account and industry.
4. Collections and payment: Your customer pays the invoice directly to South State Bank or to a designated account. The bank collects the balance.
5. Reserve release: After payment is received, the remaining invoice value is released to you, minus fees and any reserve requirements.

Product Features

• Advance rates: Competitive advance percentages based on customer credit quality and industry norms.
• Funding speed: Same-day or next-business-day funding for eligible invoices upon submission and verification.
• Facility sizes: Facilities range from short-term arrangements for specific invoices to ongoing lines sized to annual receivables.
• Recourse vs. non-recourse: Choose recourse factoring, where you retain limited liability for non-payment, or non-recourse options that offer protection against customer insolvency (subject to underwriting).
• Integration: Seamless integration with common accounting and ERP systems to streamline invoice submission and reconciliation.
• Reporting: Online account dashboards give real-time visibility to advances, fees, reserves, and collections activity.

Eligibility and Industries Served

Invoice Financing at South State Bank is suitable for B2B businesses with verifiable invoices to creditworthy buyers. Common industries include manufacturing, wholesale distribution, freight & logistics, staffing, business services, and government contractors. Eligibility is based primarily on the credit profile of your customers, invoice accuracy, and the legal enforceability of receivables.

Costs and Fees

Pricing for invoice financing typically consists of an advance fee (a percentage of each advance or an ongoing facility fee), interest on outstanding advances, and administrative charges for collections or credit protection where applicable. Rates vary according to invoice age, customer risk, advance percentage, and facility size. We provide transparent fee schedules and will outline all costs in the term sheet before you commit.

Risk Management and Compliance

South State Bank applies rigorous credit assessments and fraud controls to protect your business and our financing program. Verification of invoice authenticity, confirmation of delivery or services, and buyer credit checks help reduce risk. Compliance with applicable regulations and clear documentation mitigate legal exposure and ensure smooth operations.

Why Choose South State Bank

• Experienced team: Dedicated specialists with deep expertise in receivables financing and industry-specific practices.
• Customized solutions: Flexible program structures crafted to meet your company’s cash flow profile and growth ambitions.
• Technology-driven: Secure online systems for rapid invoice submission, funding, and reporting.
• Transparent service: Clear terms, professional collections, and collaborative account management.

Typical Use Cases

Businesses use invoice financing to accelerate growth, manage seasonal demand, bridge gaps between payables and receivables, fund new contracts, or stabilize cash flow during procurement cycles. It is particularly useful for companies that operate on net-30, net-60, or longer payment terms and for firms that must meet supplier commitments while awaiting customer payments.

Application Process

1. Initial consultation to understand your receivables profile and financing needs.
2. Submission of business documents, customer lists, and sample invoices for underwriting.
3. Facility proposal with terms, advance rates, and fee schedule.
4. Agreement execution and onboarding, including system setup and training.
5. Begin submitting invoices and receiving advances per the agreed process.

Frequently Asked Questions

Q: Can I finance invoices from multiple customers?
A: Yes. Facilities are typically structured to cover a portfolio of approved customers rather than a single invoice.

Q: How fast will I receive funds?
A: Eligible invoices are often funded same day or next business day after submission and verification.

Q: Will my customers know about the arrangement?
A: Factoring arrangements may require notification to customers if payments are to be collected by the bank. Invoice discounting can sometimes be structured confidentially; details depend on the chosen product.

Final Notes

Invoice Financing at South State Bank is a pragmatic, transparent way to unlock the value of your receivables and support sustainable growth. With flexible structures, experienced support, and technology-enabled processing, our factoring solutions help businesses convert waiting invoices into working capital. Evaluate the options that best match your risk profile, operational needs, and growth objectives to make receivables work for you.