How Invoice Financing Helped a Supplier Navigate 60-Day Terms with a Major Buyer

Introduction: When Big Deals Bring Bigger Delays

At Porter Capital, we often work with growing businesses that have landed lucrative deals—only to find themselves squeezed by long payment terms. These partnerships, especially with large corporations, can be game changers. But when those corporations operate on 60- or even 90-day terms, small and mid-sized suppliers can find themselves stuck waiting for payment while their own bills pile up.

Recently, we had a conversation with a business owner in exactly this situation. They supply used industrial engines to a Fortune 500 buyer, and while their sales volume was strong, the payment timeline was throwing a wrench into their operations. This is a common story, and it’s one that invoice financing is uniquely suited to solve.

The Problem: Cash Flow Crunch from Extended Payment Terms

This particular client was seeing steady demand. Their engines were in high demand, and one of their main buyers—a major national brand—was consistently placing six-figure orders. The challenge? That buyer paid on net-60 terms. With over $400,000 in outstanding invoices, the supplier was feeling the strain of covering payroll, sourcing inventory, and managing overhead—all without access to those funds for two months.

It’s easy to look at $400,000 in receivables and assume things are going well. But if that money is tied up for two months or more, the day-to-day operations of a business can come to a standstill. For this supplier, it wasn’t just about staying afloat—it was about maintaining momentum and seizing new opportunities while fulfilling existing orders.

The Client: A Used Engine Supplier Working with a Fortune 500 Buyer

The client, a small but fast-growing supplier in the engine resale business, had a dependable product and a proven relationship with a nationally recognized buyer. Their business model was sound, and their customers were solid—but they lacked the cash flow to fully capitalize on their growth.

In our conversation, we dug into their recent sales performance, credit status, and operational needs. They had no major debt or bank lines of credit, but they also had limited access to liquid capital. That’s where we stepped in.

The Solution: Structuring a Receivables Financing Deal

We proposed a receivables financing structure that would allow them to unlock the value of their unpaid invoices immediately—without taking on debt or waiting two months for payment.

Understanding the Advance: 50% Now, 50% Later

Here’s how it worked: We offered to advance 50% of their outstanding invoices up front. On $400,000 worth of receivables, that meant $200,000 in their account right away. When their customer paid the full invoice amount 60 days later, we would release the remaining 50%, minus a 1.5% monthly fee.

This kind of structure provides fast liquidity while keeping costs predictable and transparent. The client gets working capital when they need it most, and we handle the collections process professionally and securely.

Transparent Fees and Flexible Terms

One of the client’s initial concerns was about costs and flexibility. They wanted a structure that wouldn’t lock them into long-term commitments or hidden fees. We walked through our pricing model, outlined how the monthly fee works, and explained that they could choose which invoices to finance on a case-by-case basis. This helped build confidence that invoice financing wouldn’t be a burden—it would be a tool.

The Concerns: Financing Against a Large Company’s Invoice

A question that often comes up in situations like this is: “Can you really finance invoices from such a large company?” The answer is yes. In fact, financing receivables from large, creditworthy buyers is exactly the kind of scenario invoice factoring was built for.

The client’s concern was whether we’d view the major buyer as too big or too slow. But from our perspective, that buyer’s strong credit profile made the deal even more attractive. As long as the invoice is verifiable and the relationship is legitimate, we’re well-positioned to provide financing on it.

The Benefits: Operational Continuity and Growth Potential

With $200,000 advanced right away, the client could buy more engines, pay their team, and invest in new deals—all without waiting two months. This not only stabilized their operations, but also gave them the flexibility to grow.

Invoice financing allowed them to take control of their cash flow and continue building their business on their own terms. Instead of chasing payments or delaying growth, they could move forward with confidence.

The Process: What We Needed to Move Forward

Our onboarding process is simple and designed to move quickly. In this case, we requested:

• Copies of invoices issued to the Fortune 500 buyer

• Corresponding purchase orders

• An accounts receivable aging report

• A profit and loss statement, preferably from QuickBooks

• Confirmation of the company’s billing address

• Updated wire instructions to ensure payments from the buyer go to our lockbox

Once we had those documents, we could underwrite the deal, finalize terms, and fund the advance in a matter of days.

Document Checklist and Next Steps

We always provide a clear, step-by-step guide outlining what we need. That way, our clients know exactly what to expect and how to prepare. Our goal is to make the process as smooth as possible, especially for business owners juggling multiple responsibilities.

Final Thoughts: Tailored Financing That Fits Your Business Model

Every business is different, and so is every financing strategy. What worked for this used engine supplier may look a little different for a staffing agency, distributor, or manufacturer. But the core principle remains: If you’re sitting on unpaid invoices and need working capital, invoice financing can bridge that gap.

At Porter Capital, we don’t just fund deals—we listen, we advise, and we customize. We understand the challenges that come with scaling a business, and we’re here to help you navigate them.

If extended payment terms are holding you back, let’s talk. We’d love to explore how invoice financing can help you keep moving forward.