What is Invoice Financing?

Invoice financing is a financing arrangement where a company borrows money against the value of its outstanding customer invoices. Instead of waiting 30, 60 or 90 days for customers to pay, businesses receive a large portion of the invoice amount up front. BOK Financial Corporation provides structured programs that include invoice factoring and invoice discounting, enabling companies to stabilize cash flow, manage seasonality, and scale operations efficiently.

Core Benefits

• Immediate liquidity: Convert unpaid invoices into working capital within days, reducing the cash conversion cycle.
• Flexible funding: Funding grows as sales grow — the more invoices you generate, the more financing becomes available.
• Preserve equity: Access capital without diluting ownership or taking on longer-term debt.
• Improve credit profile: Maintain trade relationships and meet supplier obligations on time.
• Operational focus: Free management time from collections and cash-flow concerns so your team can focus on core business activities.

How Our Program Works

1. Assessment: We review your customer base, invoice quality, and typical payment terms to determine eligibility and advance rates.
2. Setup: A streamlined onboarding process connects your invoicing and accounting data with our platform for efficient funding and reporting.
3. Advance: Submit qualifying invoices and receive a substantial portion of their value — often within 24–72 hours.
4. Collections: Depending on the arrangement, either you or BOK Financial handles collections. Collected funds are reconciled, and any remaining balance minus fees is returned to you.
5. Repeat: As new invoices are issued, the facility replenishes, supporting continuous access to working capital.

Products and Options

BOK Financial Corporation offers a suite of invoice financing options to suit various business models and risk profiles:

• Invoice Factoring: Sell your receivables to BOK Financial at an agreed advance rate and fee. We assume the credit risk for approved customers, allowing you to outsource collections.
• Invoice Discounting: Borrow against your invoices while retaining control of customer relationships and collections. Ideal for businesses that prefer operational discretion.
• Selective Invoice Financing: Finance individual invoices or chosen customer accounts instead of your entire receivables ledger, offering targeted flexibility.
• Asset-Based Lending Integration: Combine receivables financing with inventory and equipment lending for a comprehensive working capital solution.

Why Choose BOK Financial Corporation

BOK Financial brings deep industry expertise, a consultative approach, and flexible structuring to help businesses convert receivables into reliable cash flow. Key differentiators include:

• Industry knowledge: Experience across manufacturing, distribution, professional services, staffing, transportation, and more.
• Customized terms: Structures designed to match your sales cycle and customer credit profiles.
• Dedicated support: Relationship managers and credit specialists work with you to streamline approval and ongoing administration.
• Secure, integrated processes: Modern onboarding and reporting tools make financing efficient while maintaining strong controls.

Who Can Benefit

Invoice financing is especially useful for businesses that:

• Sell to creditworthy business customers and experience extended payment terms.
• Have predictable invoicing cycles and recurring revenue streams.
• Need rapid access to working capital for growth, payroll, or inventory.
• Prefer flexible financing tied to sales volume instead of fixed-term loans.

Typical Eligibility and Documentation

Eligibility focuses on the quality and creditworthiness of your customers, historical sales performance, and the administrative capability to issue invoices. While specific requirements vary, common documentation includes:

• Accounts receivable aging reports and sales ledgers
• Customer contracts or purchase orders
• Business financial statements and bank references
• Proof of delivery or acceptance for invoiced goods and services

We strive for an efficient documentation process and will outline the exact items required during the initial assessment.

Fees, Rates and Risk Management

Fees are structured to reflect advance rates, the credit quality of your customers, and the chosen service model (factoring vs. discounting). BOK Financial offers competitive pricing and clear fee disclosures. Robust credit evaluation and monitoring reduce exposure to bad debt, and optional non-recourse arrangements can further mitigate risk depending on the solution selected.

Common Use Cases

• Seasonal manufacturers smoothing cash flow during peak production cycles.
• Service firms accelerating payments to fund expansion or hire staff.
• Distributors bridging the gap between supplier payments and customer receipts.
• Contractors and professional services firms managing long project timelines.

Frequently Asked Questions

How quickly can I get funding?

Once approved and onboarded, qualifying invoices can be advanced within 24–72 hours, depending on verification and documentation.

Will my customers know I am using invoice financing?

That depends on the product. In invoice factoring, customers may be notified and pay collections directly to the financier. Invoice discounting typically keeps the arrangement confidential and allows you to manage collections.

Can I finance invoices from all customers?

Financing is generally available for invoices owed by creditworthy business customers. Consumer receivables are often ineligible. Selective financing options allow you to choose which customer invoices to fund.