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In life it is important to distinguish between marketing and reality. When it comes to invoice finance, one marketing myth that has persisted is that non-recourse invoice finance shifts payment risk from seller to funder. Unfortunately, non-recourse factoring is one of the most misunderstood subjects in commercial lending. As a result, companies undertaking some form of invoice finance, receivable finance or factoring tend to have the wrong expectation about this product, potentially incurring unnecessary costs and not truly understanding the credit-risk relationship.

Interviewer: HAL, you have an enormous responsibility on this mission, in many ways perhaps the greatest responsibility of any single mission element. You're the brain, […]

A few readers have asked is there anything SWIFT can do to revive the Bank Payment Obligation? One senior banker I spoke to recently commented: […]

Factoring guys go out and work with companies to establish Asset Based lending and factoring lines based on receivables and inventory, a few are involved […]

Alternative Finance vendors can manufacture assets that can (potentially?) be sold to third parties.  I tend to look at this space as both buyer-focused and […]

My colleague Jason Busch has written recently about if you should proactively Finance Chinese Suppliers  given the Chinese devaluation and increased supplier performance risk due […]

I recently had a number of discussions with collateral lenders (asset based lenders, factors) around early pay techniques eroding their receivable base. The consensus was […]

You are a non investment grade importer that has a long term trading relationship with suppliers in China and Hong Kong and few issues with […]