# Receivables Financing

Turn Outstanding Invoices Into Working Capital.

Access capital tied up in unpaid customer invoices without waiting for extended payment terms to expire. We provide accounts receivable financing and factoring solutions that help businesses maintain liquidity, support operations, and manage increasing sales volumes.

## Unlock the Value of Your Accounts Receivable

Strong sales do not always translate into immediate cash flow. When customers operate on 30, 60, or 90 day payment terms, businesses may need additional working capital to support operations before their invoices are collected.

Receivables financing allows companies to access funding against eligible outstanding invoices, converting accounts receivable into a source of liquidity.

We structure factoring and receivables-backed financing facilities based on each company's customer portfolio, payment history, invoice eligibility, and operating requirements.

### Factoring/Receivables Backed Lending

Factoring/Receivables Financing generally involves selling eligible invoices to a financing provider, while a receivables-backed credit facility uses outstanding invoices as collateral.

Both structures provide access to capital supported by customer receivables, but their legal arrangements, collection procedures, and risk allocation may differ.

We evaluate each transaction to determine the appropriate financing structure and advance rate.

## Working Capital Without Waiting for Collections

- **Extended Customer Payment Terms.** Access liquidity while awaiting payments from customers operating on longer credit terms.
- **Growing Sales & Receivables.** Access working capital against outstanding invoices to support increasing sales and fulfill new customer orders.
- **Day-to-Day Operations.** Finance supplier payments, payroll, inventory purchases, and other operating expenses.
- **Seasonal Business Cycles.** Manage fluctuations in receivables and collections associated with seasonal activity.

## From Outstanding Invoices to Available Capital

1. **Receivables Assessment.** We review the company's accounts receivable aging, customer payment history, and invoice eligibility.
2. **Facility Structuring.** We establish a facility and advance rates based on the eligible receivables and customer portfolio.
3. **Funding & Collections.** We provide funding against eligible invoices, allowing your business to access working capital while awaiting customer payments.

## Financing Parameters

- **Facility Size:** $3M–$100M
- **Advance Rate:** Up to 90% of eligible receivables
- **Financing Structures:** Factoring and revolving receivables-backed facilities
- **Financing Basis:** Eligible customer invoices
- **Facility Term:** Generally 12–36 months
- **Recourse:** Full or limited recourse, depending on the structure

_Terms are indicative and subject to underwriting and transaction requirements._

## Sample Transaction: $8 Million Receivables Financing Facility

### Supporting Growth With National Retailers

**Industry:** Consumer Products

**Challenge.** A growing consumer products company supplying major national retailers required additional working capital as sales increased and customer payment terms extended up to 90 days. The resulting buildup in receivables and inventory placed pressure on available liquidity.

**Solution.** We approved an $8 million revolving factoring facility, providing advances of up to 85% against eligible customer invoices. The structure also included a $1.6 million purchase order financing sublimit to support production and supplier requirements.

**Result.** Within approximately four months, the facility covered 42 approved customers, supporting the company's growing retail relationships, and we subsequently approved a separate $4.35 million real estate-secured loan to refinance an existing mortgage, with excess collateral providing additional support for the factoring facility.

## Related Solutions

- [Asset-Based Lending](https://www.gobacapital.com/solutions/asset-based-lending/)
- [Purchase Order Financing](https://www.gobacapital.com/solutions/purchase-order-financing/)

## Put Your Receivables to Work.

Explore how receivables financing can support your company's working capital requirements.

[Let's Talk Success](https://www.gobacapital.com/contact/)