Receivables Financing

Drip Capital’s Receivables Financing advances cash against unpaid invoices, helping US businesses get paid sooner. No hard-asset collateral required.

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Receivables financing for unpaid invoices

Drip Capital’s receivables financing is a short-term working capital product for businesses that have already issued invoices but do not want to wait 60 to 90 days for customers to pay. Drip advances cash against those unpaid invoices, then the customer pays on the normal due date.

The product is positioned for US businesses with creditworthy enterprise buyers. The source describes a one-time credit decision of about 48 hours, followed by invoice funding within 24 hours for approved invoices. No hard-asset collateral is required, and the customer is notified of the invoice assignment as part of the standard process.

Core capabilities

Invoice-backed funding

Advance cash against invoices that have already been issued, so receivables can turn into working capital before the buyer pays.

Portal-based workflow

Submit invoices through Drip Capital’s portal once you are approved and set up, then receive funding on eligible invoices.

Fast invoice funding

The page states approved invoices are typically funded within 24 hours, helping businesses access cash sooner than standard loan processes.

No hard-asset collateral

Funding is described as non-collateralized in the sense that no hard assets are needed; the invoice itself is the basis for the advance.

Invoice-based settlement

The structure is invoice-based rather than traditional factoring, and the customer keeps paying on normal terms while Drip releases the balance when the invoice settles.

One-time credit review

A one-time credit decision is described as taking about 48 hours, after which subsequent approved invoices can be funded within 24 hours.

When to use receivables financing

Unlock cash from outstanding receivables
Use it when revenue is already earned but cash is still tied up in unpaid invoices, and you need working capital before the customer’s payment date.
Bridge long payment terms
Use it after you ship goods or complete services for a large buyer and need liquidity while the invoice runs to net-60 or net-90 terms.
Support growth without waiting for collections
Use it when you want to take on a larger order but do not want to wait for prior invoices to clear before buying materials or funding operations.
Finance B2B invoice sales
Use it if you sell to enterprise customers and want a financing structure based on invoices rather than a traditional loan or revolving credit line.
Manage recurring cash-flow gaps
Use it when customer payment timing is creating a cash-flow gap and you need a predictable way to convert approved invoices into near-term cash.

Pros and Cons

Pros

Turns unpaid invoices into cash sooner, which can reduce the time businesses wait for payment.
Approved invoices are typically funded within 24 hours after setup.
No hard-asset collateral is required.
The initial credit decision is described as taking about 48 hours, with later funding moving faster.
The structure is invoice-based, so businesses can keep working with their customers directly.

Cons

It is designed for businesses selling to large, creditworthy enterprise buyers, so it is not a fit for every customer base.
Customer notification is part of the standard invoice-assignment process.
The page describes a financing fee when the invoice settles, so this is not free cash.

FAQ

How does receivables financing work?

Drip Capital’s receivables financing advances cash against invoices you have already issued. After approval and setup, you upload the invoice in the portal, Drip funds it within about 24 hours, and your customer pays later on the invoice due date.

How fast is funding approved and paid out?

The page says approved invoices are typically funded within 24 hours, while the initial credit decision takes about 48 hours. The product is positioned as fast funding for businesses that already have unpaid invoices.

Does it require collateral?

No hard-asset collateral is required. The invoices themselves support the advance, and Drip underwrites the creditworthiness of the enterprise customers that owe the invoices.

Will my customers be notified?

Yes. Standard receivables financing includes customer notification of the invoice assignment. The page notes that you continue to manage the customer relationship as usual.

Who is it designed for?

The product is described as a fit for US-registered businesses with at least $1M in annual revenue that invoice creditworthy enterprise buyers with $1Bn+ in annual revenue.

Quick Facts

Category: Working capital / receivables financing
Primary users: US-registered businesses invoicing enterprise buyers
Funding speed: Typically within 24 hours for approved invoices
Credit decision: About 48 hours
Collateral: No hard-asset collateral required
Source domain: dripcapital.com