Invoice Financing at UBS

Invoice Financing at UBS is a tailored working capital solution designed to help businesses unlock cash tied up in outstanding receivables. By converting unpaid invoices into immediate liquidity, companies can stabilize cash flow, support growth initiatives, manage seasonal fluctuations and optimize treasury operations. UBS combines global credit expertise, risk management capabilities and digital tools to deliver scalable, efficient and transparent invoice financing structures suitable for mid-market to large corporate clients across industries.

Why choose invoice financing?

Businesses frequently encounter gaps between the delivery of goods or services and receipt of payment from customers. These timing differences can constrain operations, limit investment and complicate supplier relationships. Invoice financing bridges this gap by allowing organizations to monetise receivables without waiting for customer payment terms to elapse. Key advantages include immediate access to working capital, improved cash conversion cycles, reduced reliance on overdrafts or unsecured borrowing and enhanced liquidity visibility for better planning.

Solutions and structures

UBS offers a range of invoice financing structures, tailored to the specific credit profile of the seller and its customers, as well as the client’s operational model. Common structures include:

• Factoring – Sale of receivables to UBS, which provides advance funding, credit and collection services. Factoring can be on a recourse or non-recourse basis depending on credit risk allocation.
• Invoice discounting – A confidential facility where receivables remain on the seller’s balance sheet while UBS advances a percentage of invoice value, supporting working capital without altering customer relationships.
• Selective invoice financing – A flexible option enabling financing of specific invoices or customer portfolios, allowing clients to target funding to seasonal peaks or particular buyer concentrations.
• Supply chain and receivables financing – Integrated programmes that optimise payables and receivables across the supply chain, including supplier finance and reverse factoring arrangements.

How the process works

1. Assessment – UBS evaluates the client’s receivables profile, customer creditworthiness, industry dynamics and internal processes to design an appropriate facility.
2. Structure proposal – A customised financing solution is proposed, including advance rates, fees, recourse terms and reporting requirements.
3. Onboarding – Documentation, KYC and system integrations are completed. UBS can support onboarding of buyer approvals and alignment with the client’s ERP or treasury systems.
4. Funding – Approved invoices are uploaded or reported; UBS advances the agreed proportion of invoice value, typically within hours or the same business day.
5. Collections and settlement – Upon customer payment, remaining balances are settled after fees and any reserve amounts are reconciled.

Key features

• Speed and reliability: Rapid funding cycles reduce days sales outstanding and improve cash predictability.
• Flexible advance rates: Advance amounts depend on customer credit quality, industry risk and the selected product structure.
• Custom risk allocation: Solutions can be structured with recourse or non-recourse components, allowing clients to manage credit exposure and capital treatment.
• Integration with digital platforms: UBS supports electronic submission and reconciliation of invoices, enabling seamless reconciliation and real-time reporting.
• Global reach: Local presence and international network allow cross-border receivables to be included in the financing programme where appropriate.
• Regulatory and accounting guidance: UBS advises on balance sheet, tax and accounting implications to help clients achieve their financial objectives.

Benefits for business

Invoice Financing with UBS helps businesses improve liquidity and reduce reliance on traditional credit lines. Clients can:

• Maintain supplier relationships by paying on time and taking advantage of early payment discounts.
• Support growth initiatives — such as expanding into new markets, hiring, or inventory investment — without diluting equity or increasing long-term leverage.
• Enhance working capital metrics and strengthen balance sheet management through predictable cash flows.
• Reduce administrative burden by leveraging UBS collections and credit management capabilities, if selected within the solution scope.

Eligibility and underwriting

Invoice financing eligibility is primarily driven by the quality of the receivables and the creditworthiness of the buyers. UBS evaluates factors such as buyer concentration, contract terms, historical payment behaviour, industry stability and any country or currency risks. For larger or more complex programmes, UBS may also consider supplier and distribution arrangements, insurance options and guarantees to optimise risk-adjusted pricing.

Pricing and fees

Pricing for invoice financing is typically composed of an advance fee or discount applied to the advanced amount, a facility fee or commitment charge, and any arrangement or servicing fees associated with collections or credit protection. Rates and fees vary by structure, tenor and risk profile. UBS offers transparent fee schedules and can tailor pricing to reflect volume, tenor, and the degree of credit enhancement required.

Risk management and controls

Robust risk management underpins UBS’s invoice financing offerings. Credit assessment, ongoing monitoring, fraud prevention measures and tailored credit limits help protect clients and the bank. Where appropriate, UBS can integrate credit insurance, guarantees or collateral arrangements to further mitigate exposure. Digital controls and audit trails support compliance and governance standards.

Technology and reporting

UBS leverages secure digital platforms to facilitate invoice submission, validation, funding and reconciliation. Real-time dashboards provide visibility into outstanding invoices, advances, fees and payments received. Integration options with ERP systems streamline workflows and reduce manual processes, improving accuracy and accelerating funding cycles.

Getting started

Engaging with UBS for invoice financing begins with a diagnostic review of your receivables, cash conversion cycle and strategic objectives. Following the assessment, UBS recommends a solution aligned with your working capital strategy, risk appetite and operational preferences. Implementation involves legal and operational onboarding, after which invoices can be included and funded according to the agreed terms.

Conclusion

Invoice Financing at UBS is a flexible and efficient way to convert receivables into immediate liquidity, enabling businesses to improve cash flow, support growth and reduce financing costs. With tailored structures, rigorous risk management and integrated digital capabilities, UBS provides a scalable solution that adapts to the needs of dynamic organisations operating locally and across borders.

Address Bank: Zurich and Basel, Switzerland
Bank: UBS
Headquarters: New York City
Products: Business Financing
Type: Invoice Financing