Insights
insights
Plain-English guides to receivables finance: how securitization works, what credit insurance changes, and how companies climb the funding ladder.
What is accounts receivable securitization?
Accounts receivable securitization, explained: how selling invoices to a special purpose vehicle lets a company fund its receivables at institutional rates.
Factoring vs. securitization: the receivables funding ladder
Factoring, private credit, bank lines and securitization compared: what each one prices, who qualifies, and how to move up the receivables funding ladder.
How trade credit insurance lowers your cost of capital
Trade credit insurance protects you when customers don't pay. Used well, it also lets funders price your receivables off your insurer. Here is how that works.
Can a mid-market company securitize its receivables?
Securitization used to be for the largest companies. What kept mid-market companies out, what has changed, and what you need to securitize your receivables.
Receivables finance glossary
Plain-English definitions of the terms used in receivables finance and securitization, from advance rate and dilution to true sale and special purpose vehicle.
Invoice Ledger, in short
What is Invoice Ledger?
Invoice Ledger takes companies that sell to other businesses on credit terms straight to accounts receivable securitization, the cheapest way to fund receivables, and runs the whole program for them. It is based in New York.
Is Invoice Ledger a lender?
No. Invoice Ledger structures and runs the program. Banks, insurers and capital markets investors fund the receivables, and they never sit on Invoice Ledger's balance sheet.
Who is Invoice Ledger for?
Companies that sell on credit terms and want institutional pricing on their receivables, especially those with trade credit insurance or customers an insurer would cover. Trade credit insurance brokers can also refer their clients.
What does it cost compared with factoring?
Securitization prices your receivables off your credit insurer, the way institutional investors price them. Indicatively that is single digits a year at the quarterly funding window, against high teens and up for factoring. Your rate depends on your insurer, customers, terms and volume.
How much of my receivables can be funded?
Up to 90% of eligible receivables, depending on dilution such as credit notes, returns and disputes.
Do I need trade credit insurance?
Credit insurance is what carries the credit in an Invoice Ledger program. If you already have a policy it can usually be reused; if not, it can be placed for you.
What do I have to do?
Review your AR workflow with us once and close any gaps, for example customer confirmations and a collection account. After that you keep invoicing your customers the way you do today, and Invoice Ledger runs the rest.
How do trade credit insurance brokers work with Invoice Ledger?
Brokers introduce insured clients and stay in the relationship. Invoice Ledger turns the policy into institutional funding and pays the broker a referral on every funded account, in addition to the brokerage commission. See invoiceledger.com/brokers.