ONESOURCE Pagero Factoring: how to free up the capital tied up in your invoices

Traditionally, invoice financing has been handled separately from day-to-day operations, requiring separate systems, manual steps and additional providers to manage.

ONESOURCE Pagero Factoring takes a different approach, integrating financing directly into the invoicing workflow.

The solution combines market-leading digital e-invoice delivery and financing in a single process. Invoices are delivered efficiently and in compliance with applicable regulations, with financing integrated into the same workflow. This means you do not need to change the way you work: financing becomes a natural part of the process.

Pagero’s global network connects ERP systems, customers, public authorities and financing providers in more than 80 countries. This creates a consistent, automated workflow in which invoices are delivered, processed and financed in accordance with local requirements and regulations.

The process is simple, but it can have a significant impact on the business.

1. You deliver your goods or services as usual
2. The invoice is sent through the ONESOURCE Pagero open network
3. It is delivered to the customer quickly and securely
4. The invoices you choose to finance are automatically forwarded to the financing partner
5. Once an invoice is approved, the funds are paid to you by the financing partner
6. The customer pays the financing partner according to the usual payment terms

The entire process takes place within your existing invoicing workflow, without manual steps or parallel processes. You decide which customers or invoices to include, giving you both flexibility and control.

Financing is integrated into your existing workflow, without adding another process to manage.

Every outstanding invoice ties up capital the business has already earned but cannot yet access.

With traditional invoice financing, capital remains tied up until the customer pays, leaving the business to cover its costs from other sources in the meantime.

ONESOURCE Pagero Factoring makes that capital available immediately.

Selling the invoice turns accounts receivable into liquid assets straight away, making cash flow more predictable and giving the business access to its capital when it is needed – not weeks or months later.

Rather than taking on debt, the business gains access to capital it has already earned.

In off-balance-sheet factoring, accounts receivable are sold and removed from the balance sheet when they are financed. The transaction is a sale of assets, not a loan.

This can improve key financial metrics such as the equity ratio and DSO, while reducing the amount of capital tied up in accounts receivable. It may also strengthen the company’s credit profile, which can support discussions with banks. In addition, it can make financial requirements easier to meet and create scope for other forms of financing.

At the same time, the credit risk is transferred, so the business is not financially affected if the customer fails to pay.

Traditional invoice financing often requires:

• manual processing
• separate systems and integrations
• additional resources
• limited scalability

This approach may be manageable on a small scale, but it becomes increasingly difficult to sustain as the business grows.

By contrast, ONESOURCE Pagero Factoring integrates financing into a digital, automated workflow.

Because distribution, format conversion, compliance, archiving and financing are all handled within the same solution, the business benefits from a more consistent way of working.

The benefits include:

• less administration
• greater control
• greater efficiency
• a solution that scales with your business

Every unpaid invoice ties up capital the business has already earned but cannot yet access.

ONESOURCE Pagero Factoring gives the business immediate access to that capital, while reducing administration and credit risk. With financing integrated into the existing invoicing workflow, there is no separate process to manage.

In a market where payment terms are lengthening and uncertainty persists, the question is not whether you need to act, but how.