What is Invoice Financing?

Invoice financing is a flexible funding option that allows businesses to borrow against their accounts receivable. Instead of waiting 30, 60, or 90 days for customers to pay, companies can access a portion of the invoice value up front. Independent Bank Corp. offers invoice financing tailored for small and medium-sized enterprises, headquarters of divisions, and growth-stage companies seeking reliable, predictable liquidity without diluting equity.

How Our Program Works

1. Invoice Submission: You submit approved invoices from creditworthy customers to Independent Bank Corp.
2. Advance Funding: We advance a percentage of the invoice value—typically up to a set advance rate—directly to your account, often within one to two business days.
3. Collection and Rebate: When the customer pays the invoice to the bank, Independent Bank Corp. remits the remaining balance to you, less agreed fees and interest.
4. Repeat and Scale: As new invoices are issued and collected, access is renewed, creating a continuous source of working capital that grows with your business.

Key Features

• Fast Access to Cash: Receive advances quickly to cover payroll, inventory, supplier payments, or growth initiatives.
• Flexible Usage: Funds can be used for any legitimate business purpose; there are no strict covenants forcing particular expenditures.
• Custom Advance Rates: Competitive advance percentages tailored to industry risk profile and customer creditworthiness.
• Transparent Fees: Clear structuring of discount fees, service charges, and applicable interest—no hidden costs.
• Dedicated Support: Expert relationship managers guide clients through onboarding, account management, and portfolio monitoring.
• Credit Risk Assessment: Independent Bank Corp. performs thorough due diligence on obligors, enabling higher advances for stronger receivables.
• Scalable Limits: Facilities are sized to grow with your sales volume, supporting expanding receivable portfolios.

Benefits for Your Business

Using invoice financing at Independent Bank Corp. translates into practical advantages:

• Improved Cash Flow: Eliminate gaps between invoicing and payment, reducing the need for overdrafts or emergency borrowing.
• Predictable Working Capital: Plan operations and investments with greater certainty thanks to steady access to collected receivables.
• Preserve Ownership: Unlike equity financing, invoice financing does not require giving up control or shareholders’ equity.
• Enhanced Supplier Relationships: Pay suppliers on time and potentially negotiate better terms by demonstrating reliable liquidity.
• Support for Growth: Finance expansion, new contracts, or large orders without waiting for customer payment cycles to catch up.

Ideal Candidates

Invoice financing is particularly well suited for businesses that:

• Sell goods or services on credit terms to established customers.
• Experience seasonal demand swings or rapid growth.
• Need short-term liquidity without long-term debt commitments.
• Prefer flexible funding that grows with sales volume rather than fixed loans.

Typical Terms and Structure

Terms are customized but commonly include:

• Advance Rate: A percentage of each invoice value provided up front.
• Facility Limit: The maximum receivables balance eligible for financing at any time.
• Fees and Interest: Discount fees or interest charged on advanced amounts and service fees for origination and management.
• Recourse vs Non-Recourse: Options available depending on the creditworthiness of your customers and the level of risk transfer you prefer.
• Term Length: Short-term, revolving facilities aligned with invoice cycles and payment behavior.

Documentation and Onboarding

Independent Bank Corp. streamlines onboarding with a focused documentation process. Expect to provide:

• Company registration and ownership documents.
• Recent financial statements and cash flow history.
• Customer invoices, contracts, and proof of delivery where applicable.
• Credit references and accounts receivable aging reports.

Once approved, the bank integrates a simple workflow for invoice submission, approval, and funding so you can begin accessing cash quickly.

Risk Management and Protections

Independent Bank Corp. employs rigorous credit assessment and portfolio monitoring to mitigate risks. Typical protections include:

• Verification of invoice legitimacy and delivery of goods or services.
• Continuous monitoring of obligor payment behavior and concentration limits to avoid excessive exposure to any single customer.
• Flexible recourse arrangements and insurance options for added protection against customer default.

Use Cases and Industry Applications

Invoice financing benefits a wide spectrum of industries, including manufacturing, wholesale distribution, professional services, staffing firms, technology services, and business-to-business suppliers. Whether fulfilling a large purchase order, smoothing seasonal payroll, or accelerating receivable conversion for working capital, the product provides practical and scalable support.

Why Choose Independent Bank Corp.

Clients choose Independent Bank Corp. for a combination of financial expertise, personalized service, and a commitment to transparent pricing. The bank’s commercial lending experience enables it to structure invoice financing solutions that reflect the realities of your business model while providing the speed and reliability you need to manage day-to-day operations and execute strategic plans.

Frequently Asked Questions

Will using invoice financing affect customer relationships?

Independent Bank Corp. works discreetly and can structure arrangements to preserve customer experience. In many cases, collections remain professional and non-disruptive.

Can I finance invoices from multiple customers?

Yes. Facilities are typically structured to include a portfolio of eligible customers, with monitoring and concentration limits applied for risk management.

Is invoice financing the same as factoring?

They are closely related. Invoice financing can be structured as recourse financing (you retain some responsibility) or non-recourse factoring (the bank assumes more credit risk). Terms vary by agreement.