Invoice Financing Solutions

Financing Solutions for Management Teams

Sand River can assist firms by arranging for receivables finance solutions

Recourse Factoring

  • Standard in the marketplace and widely available
  • If your customer does not pay the invoice, the factoring provider can come back to you for payment
  • You assume risk on non-payment, including in the event of insolvency by your customer
  • Recourse factoring fees tend to be the lowest, all else being equal, as the pricing is based purely on the financing and you (as opposed to the factoring company) retain the ultimate credit risk

Modified Recourse Factoring

  • The factoring company carries credit insurance on the customer, which offers protection to you if your customer is unable to pay the invoice due to financial failure or bankruptcy
  • If the customer refuses to pay the invoice from a dispute over quality, delivery, or specifications, the factoring company still has recourse back to you
  • Modified recourse factoring fees are higher than for recourse factoring as the factoring company is assuming increased risk

Non Recourse Factoring

  • The risk of insolvency and non-payment is completely transferred to the factoring company
  • If your customer goes bankrupt or refuses to pay the invoice (for whatever reason), the factoring company cannot come back to the you for payment (except in the case of gross negligence or willful fraud)
  • Non-recourse factoring fees are higher than recourse factoring fees as well as modified recourse factoring fees as the factoring company is assuming greater risk

Bespoke Factoring Solutions

  • Certain customers require customized solutions that can be tailored to specific needs, including customization of:
    • Pricing
    • Advance rates
    • Term
    • Structure
    • Branding
    • Lockbox location