Frequently Asked Questions
How does Invoice Financing with Lenders Commercial Finance differ from other business financing arrangements?

Unlike traditional bank financing (where the focus is on clearing very specific financial hurdles), the focus with Invoice Financing is the strength of your business model and the creditworthiness of your buyers.

Unlike traditional accounts receivable factoring where the factor takes over your accounts receivable, with Invoice Financing by Lenders Commercial Finance you remain in control of your customer relationships.

How does Invoice Financing work?

Once we establish an “Invoice Financing Line Of Credit” for your company we partner with you in establishing Invoice Financing Limits for each of your buyers. You submit the invoices you wish to finance via our secure internet-based invoice management system. Invoices representing goods that have been delivered or work that has been completed are funded within 24 hours by wire to your account.

How much do I receive for my financed invoices?

We typically advance 90% of the net invoice amount up front and the balance when the invoice is collected.

Do I have to finance all my invoices?

No. We want to give you as much flexibility as possible in managing your cash flow. Not all buyers need to be financed. You can hold invoices on buyers approved for financing up to 15 days after delivery of goods (or work completion).

Can I payoff financed invoices before they are collected?

Yes. You can “buy back” all or any part of your financed invoices at any time and for any reason.

Is it expensive to finance my invoices?

The amount advanced to you is charged a convenient daily rate. The cost is higher than with bank financing but is typically significantly lower than other traditional factoring.

Are charges based on the total invoice value or on the amount advanced?

With Lenders Commercial Finance all charges are based on the actual amount advanced to you. Other than pass-through wiring fees, there are no hidden fees or add-on costs as with most other financing programs.

Who is a good candidate for a Lenders Commercial Finance line of credit?

If you are a small or mid-market business (SMB) with firm purchase orders and B2B trade A/R you can use your assets to qualify with LCF. You can generate funding now to grow your business, pay down other loans or obligations, and to take advantage of new business opportunities.

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