TBF is similar to factoring accounts receivable in that the invoice(s) are actually purchased, not borrowed against. Unlike factoring receivables, however, transaction-based financing is transaction-based, not batch-based. This means that every invoice is purchased as a standalone asset, not put into a group masking the invoice identity, validity, credit worthiness, etc. Because of the individual invoice structure of TBF, it can only be administrated on a state-of-the-art technology platform that enables such individual invoice verification, validation, credit analysis of the paying customer, visibility, etc., to take place at the speed of lightning.

TBF is ideal for less established businesses that invoice to Fortune 500 companies since the credit decision is largely based on the company paying the invoice. TBF is also ideal for expanding businesses that are rapidly outgrowing their borrowing base as illustrated.


provides complete outsource processing for banks who would like to offer their clients transaction-based financing but must stay within their financial institutions' credit culture and FDIC guidelines to do so.

HOW IT WORKS: provides the back-office operation which allows the bank to know the invoice origin, validation, credit strength, etc., before the bank actually purchases the invoice(s) (accounts receivable) from the bank's client at a discount.


Ridiculous - I know, but in many cases, that is how factoring receivables is done. The invoices are simply batched together and discounted. You have no idea what is making up the pool. If your client were to go out of business, how would you ever collect?


handles all the back-office administration to safely allow the bank to do TBF. Although the margins of TBF are 2 to 3 times greater than any other product offered by banks, many banks shy away from this type of funding due to the perceived risk.


Safely administrated, TBF can be the most profitable product in the bank. The Program in Action section of this website has real-life stories of banks who have implemented this product, outsourcing to , with phenomenal results. You can be another success story.

Now you can have it all. has eliminated the learning curve and time constraints of the bank’s back-office processing by assigning the workflow to their own experienced office staff. The processing is handled on a state-of-the-art SAS 70 audited internet system which enables verification, validation and credit evaluation to take place at the individual invoice level. This platform allows the banker to have complete visibility into all funding with real-time information that is auditable and traceable.

's management team will assist the financial institution in developing customized policies, procedures, credit guidelines and business rules that are compliant within that lending institution's credit culture. These policies, procedures and business rules will be programmed (many on an individual client basis) into the system and adapted daily throughout the workflow process. Since the bank procedures will be automated within the system, the bank can be assured regulatory compliance will occur. Complete visibility into each and every aspect of the compliance environment created by the procedures and business rules will not only give the bank peace of mind, but also the ability to make adjustments wherever or whenever they feel it is necessary.

Partnering with is the perfect way to maintain control of the portfolio management without having to worry about the day-to-day workload. The bank/ makes the administrative decisions relative to client fees and set up. The system used by has complete pricing flexibility in order to maintain the appropriate margin to mitigate the risks of the transaction. The bank is also able to select a discount fee that can be either fixed, graduated, or even variable.

Easy. Just customize what works for you. 's partners select the way they want to structure the safety of their own TBF portfolio. 's experienced Processing Center staff does the work. Example of Custom Designed Controls for Transaction Based Financing: The bank can select and customize any or all of the following business rules and controls. will process the TBF portfolio according to the pre-selected controls.

• Customer Credit Requirements
  's partners decide if they want the credit checked on their client’s customers. Based on their strength, each customer would receive a credit rating relative to a specific dollar amount. Any invoices entering the system above the customers’ pre-set dollar amount would not be eligible for purchasing.
  
  
• Notification Requirements
  The bank decides if they wish to have their client's customers notified regarding the relationship with the bank/funding Source while re-directing payments to the bank/funding source’s lock box.
  
  
• Validation
  will validate invoices to be purchased according to the bank's pre-selected validation criteria. The bank is able to dictate certain parameters they choose to have set within the software. Validation can be set for UPS tracking per dollar amount as well as on a pick up or delivery basis. The system can also be set to check invoices per customer or per amount. The bank also has the option of instructing the Processing Center to select a pre-set number of invoices for validation on a sampling basis. Any one or a combination of the above courses of action can be implemented.
  
  
• Verification
  's partners decide if they wish to have invoices verified as to accuracy on an invoice-specific basis or on an invoice sampling basis. The bank is able to dictate certain parameters they choose to have set within the software. Verification will be done by 's Processing Center according to the pre-selected parameters.
  
  
• Excluded from Advance:
  Safety rules can be set to exclude invoices that reach x number of days old from being eligible for advance.
  
  
• Customer Concentration:
  The bank can set up an overall customer concentration percentage that applies across the entire portfolio. When a customer's invoice exceeding the pre-set percentage enters the system, it will not be available for advance. The bank then has the managerial flexibility to override this safety rule on an individual invoice basis as needed.
  
  
• Maximum Invoice Age:
  Safety rules can be set to exclude invoices that are x number of days old from being eligible for advance.
  
  
• Maximum Invoice Amount:
  Any invoice that is a pre-set amount can be excluded from advance eligibility.
  
  
• ECP:
  Any new invoice can be excluded from being eligible for advance if it belongs to a customer that has existing advanced invoices that are already past their expected collection period (ECP). This prevents further exposure of a customer not paying according to their normal payment cycle.
  
  
• Collections:
  's trained collectors will professionally and sensitively collect on all purchased invoices. This significantly speeds up payments.
  
  
• Posting:
  specialists will post from a feed or file copy supplied by the bank/funding source — taken from checks that went to the bank's lockbox. Posting will be done in the system the same day the information reaches our Processing Center.
  
  

All work performed at the Processing Center is done professionally and in a timely manner. This value-added service enables banks to take advantage of offering Transaction-Based Financing to their clients, thus participating in a significant new source of fee revenue.