Receivables Bulk Purchase

Get receivables financing to grow your business

Convert your receivables into cash

Turn your accounts receivables into cash and potentially improve balance sheet ratios. Receivables bulk purchase, or RBP, is a working capital tool that allows companies to monetize accounts receivable early through a true-sale, off-balance-sheet financing structure. This helps support growth, major purchases, operating expenses and seasonal cash needs. Companies can choose which customers to include based on liquidity goals.

Tailored services

Each receivables purchase agreement is customized to meet your specific business cash flow financing requirements.

Support

Support parent or subsidiary needs by accessing the working capital tied up in accounts receivable.

Flow

Mitigate large customer receivable concentrations with strategic receivables portfolio management and diversified cash advances on invoices.

Let's work together on a receivables bulk purchase today

Contact our commercial services team

Benefits

  • Improve your cash flow and liquidity
  • Get paid faster and optimize your days sales outstanding, or DSO
  • Enjoy flexible sales frequency for in-scope customers
  • Take advantage of discount rates that are usually lower than alternative financings

Features

  • Can convert your receivables into immediate cash
  • Nonrecourse and non-notification options available
  • May allow access to up to 100% advance rate
  • Available for domestic and international customers

Our Process
How does receivables bulk purchase work?

Step 1
Supplier

Delivers goods and invoices to the buyer

Step 2
Supplier

Sends invoice details and early payment request to the bank

Step 3
CIT

Approves request and a bulk of receivables is purchased at a discount that may allow access to up to 100% advance rate

Step 4
Buyer

Pays invoice at maturity

Receivables bulk purchase FAQ
People often ask us

Receivables bulk purchase is a financing solution where a bank purchases a pool of a supplier's outstanding customer invoices to provide immediate cash flow. After a streamlined review process, the bank provides the supplier with an upfront payment minus an agreed-upon discount rate—helping to improve liquidity. Customers typically continue to pay invoices to a supplier-owned bank account.

Both of these financial services allow suppliers to get immediate cash from unpaid invoices, but they differ in several ways.

  • Receivables bulk purchase involves selling a large volume of outstanding invoices periodically for a preselected group of customers, while traditional factoring is used for selling invoices on a regular basis for the majority of existing invoices.
  • Fees for traditional factoring are a percentage of the invoice value and can vary based on factors like the invoice amount and customer creditworthiness. Fees for receivables bulk purchase may be lower per invoice and only include an interest charge for early payments.
  • Traditional factoring allows businesses to streamline collections by having the factor manage customer payments, freeing up time and resources. Receivables bulk purchase enables businesses to remain more directly involved in customer relationships as well as the invoice collection process.

Receivables bulk purchase applies to many types of industries. It's especially useful for companies that have significant accounts receivable and need to improve their cash flow or manage large order and production costs. If you'd like to determine whether your business qualifies for receivables bulk purchase, we can assess your situation and provide guidance that best meets your needs.

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