Accelerate cash conversion
Bring cash forward from approved receivables instead of waiting through extended payment terms.
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Receivables liquidity
Convert completed sales into working capital—now.
Long customer terms can make a growing business cash-poor. Factoring converts eligible invoices into immediate liquidity so cash can move closer to the speed of sales.
Discuss this solutionThe essentials
What it is
Domestic & Cross-Border Factoring
Under a factoring arrangement, eligible accounts receivable are sold or assigned to a factor. The factor advances an agreed portion of the invoice, the customer pays according to the notice and payment instructions, and any applicable reserve is released after collection, less agreed fees and adjustments.
Business impact
What the right structure can unlock.
Fund growth
Use liquidity for inventory, payroll, freight, suppliers and the next order without relying only on fixed bank lines.
Scale with sales
A receivables-based facility can expand as eligible invoice volume grows, subject to the program terms.
Add credit support
Depending on structure, the factor may contribute customer analysis, collections and defined credit-risk protection.
Solution design
Structures built around the exposure.
Recourse factoring
The seller retains specified nonpayment risk and may be required to repurchase or replace uncollected receivables.
Non-recourse factoring
The factor assumes defined credit risks on approved buyers; disputes, dilution and other exclusions generally remain with the seller.
Domestic factoring
Financing and administration for receivables where seller and customers operate in the same market.
Cross-border factoring
Structures for export receivables that account for jurisdiction, currency, assignment, collections and country risk.
How the flow works
Goods move forward. Capital moves intelligently.
Advance now · customer settlement later
Goods & invoices move through the trade cycle
Step 1
Assess the book
Review aging, customer quality, dilution, disputes, concentrations, terms and invoicing practices.
Step 2
Structure the facility
Align advance mechanics, reserves, pricing, recourse, concentration limits and eligibility with the business.
Step 3
Verify and fund
Eligible invoices and supporting performance evidence are submitted, verified and funded under the agreed process.
Step 4
Collect and reconcile
Customer payments are applied, fees and adjustments are reconciled, and any remaining reserve is released.
Strong fit
When to consider this solution.
- Companies growing faster than their cash conversion cycle
- Businesses offering 30–120 day customer terms
- Importers, exporters, manufacturers and distributors
- Companies with strong customers but limited traditional borrowing capacity
Start a conversation
Ready to explore domestic & cross-border factoring?
Share your receivables, customers, payment terms and objectives. TSI will help you identify the most effective path forward.