1. Overview
1. Overview
Invoice financing involves financial, operational and counterparty risks. Review every opportunity and the applicable terms independently.
2. Credit and counterparty risk
2. Credit and counterparty risk
A buyer or other counterparty may pay late, fail to pay or dispute an invoice. Capital is at risk.
3. Liquidity risk
3. Liquidity risk
An investment may not be transferable or repayable before the stated maturity or settlement process.
4. Expected Return risk
4. Expected Return risk
Expected Return is not guaranteed. Actual timing and amounts may differ because of payment, fees, recovery and other factors.
5. Concentration risk
5. Concentration risk
Exposure to one buyer, business, industry or tenure can increase the effect of an adverse outcome.
6. Operational and technology risk
6. Operational and technology risk
Service interruption, processing errors, fraud attempts or third-party failures can affect access and timing.
7. Legal and regulatory risk
7. Legal and regulatory risk
Applicable law, tax treatment, regulatory expectations and contractual rights may change or be interpreted differently.
8. Independent review
8. Independent review
Diversify where appropriate, review all available information and obtain independent advice where needed before deciding.