Invoice Financing at Old National Bank

Invoice financing from Old National Bank is designed to help businesses unlock cash tied up in unpaid invoices, improve working capital, and accelerate growth without taking on long‑term debt. This solution converts outstanding customer invoices into immediate funds so companies can cover payroll, purchase inventory, invest in operations, or seize new opportunities while waiting for invoice payment cycles to complete.

Who it's for

Invoice financing is ideal for small and medium-sized enterprises (SMEs), growing companies, and established firms that operate on invoice-based payment terms. Typical users include manufacturers, distributors, professional services providers, contractors, and any business that issues invoices to creditworthy customers but needs faster access to liquidity.

Key features

• Fast access to cash: Convert issued invoices into working capital quickly, shortening the cash conversion cycle.
• Flexible funding: Finance invoices on an ongoing basis as they are issued, scaling support with business activity.
• Non-dilutive capital: Maintain ownership and equity structure while improving liquidity.
• Credit-sensitive underwriting: Availability and pricing may reflect the creditworthiness of billed customers rather than only the borrowing company.
• Transparent structure: Clear advance rates, fees, and recourse options tailored to your needs.
• Integration support: Solutions designed to align with common accounting and invoicing processes to minimize administrative burden.

Benefits for your business

• Improved cash flow: Smooth out seasonality and meet short-term obligations without delaying growth plans.
• Predictable working capital: Convert receivables into reliable liquidity to manage operational cycles.
• Operational flexibility: Use funds for hiring, inventory, supplier payments, or strategic investments.
• Stronger supplier relationships: Pay vendors and suppliers when due, often unlocking favorable terms and discounts.
• Focus on growth: Spend less time chasing payments and more time building the business.

How invoice financing works (simple steps)

1. Submit invoices: You present eligible customer invoices to Old National Bank for financing.
2. Underwriting and approval: The bank assesses invoices, customer credit, and your overall profile to determine advance rates and fees.
3. Receive funds: An agreed percentage of the invoice value is advanced to your account, typically within business days.
4. Collection: Either the bank collects payment directly from your customer or you manage collection depending on the arrangement.
5. Settlement: Once the invoice is paid, the remaining balance is returned to you minus fees and any reserve or charges.

Types of invoice financing available

• Factoring: The bank purchases invoices and assumes collection responsibilities; often suitable for companies that prefer offloading receivables management.
• Invoice discounting: You retain control of sales ledger and collections; financing is confidential to customers in many arrangements.
• Selective or spot financing: Finance only particular invoices on a transaction-by-transaction basis rather than a whole ledger.
• Receivables line of credit: A revolving facility secured by invoice receivables that can be drawn as needed.

Eligibility and underwriting considerations

Eligibility typically depends on the quality and creditworthiness of your customers, the age and validity of invoices, your industry, historical payment patterns, and your company’s financial stability. Older invoices or invoices from high‑risk customers may attract different terms or be ineligible. The bank will review documentation, account receivable aging, and operational processes as part of the assessment.

Typical documentation required

• Copies of invoices to be financed and related contracts or purchase orders.
• Recent accounts receivable aging and sales ledger details.
• Basic business information including entity formation documents and ownership details.
• Recent financial statements, bank statements, and tax filings, where applicable.
• Customer credit references or payment history files.

Pricing and terms

Pricing for invoice financing generally includes an advance rate (percentage of invoice value advanced up front), a finance or discount fee that accrues while the invoice is outstanding, and administrative or account fees. Terms are structured to reflect invoice age, customer credit strength, industry risk, and the chosen product type (factoring vs. discounting). Old National Bank offers flexible terms that can be tailored to seasonal cycles, growth plans, and specific cash‑flow needs.

Use cases and examples

• Seasonal businesses: Smooth operating cash needs during off-peak months.
• Rapid growth: Fund increased production or inventory purchases driven by new contracts.
• Supplier negotiations: Pay suppliers early to secure discounts or better terms.
• Project-based firms: Bridge gaps between milestone invoicing and final payment.

Frequently asked questions

Will my customers know I use invoice financing?

That depends on the product chosen. With factoring, customers often interact with the financing provider during collection. With confidential invoice discounting, your customers may not be aware.

How quickly can I get funded?

Speed varies by application complexity and documentation, but many invoices can be advanced within a few business days after approval.

Can I finance invoices from multiple customers?

Yes. Most facilities allow you to finance invoices from multiple creditworthy customers, subject to agreed terms and limits.

Is invoice financing a loan?

Invoice financing is a form of working capital financing. Depending on the structure, it may be treated differently from a traditional term loan on financial statements. Consult your financial advisor for accounting treatment.

Getting started

To explore invoice financing, prepare a summary of your accounts receivable, typical invoice sizes, customer credit profiles, and recent financial statements. An initial discussion with a representative can help determine which structure best fits your cash‑flow needs and growth plans. Old National Bank can tailor a solution to align with operational realities and strategic objectives while helping preserve working capital and business momentum.

Invoice financing is a practical way to convert receivables into usable capital and improve liquidity without diluting ownership. When implemented with clear terms and sound management, it becomes a strategic tool to stabilize cash flow and support sustainable growth.

Address Bank: Chicago, Illinois Evansville, Indiana, U.S.
Bank: Old National Bank
Headquarters: Evansville, Indiana
Products: Business Financing
Type: Invoice Financing