A financial service enabling businesses to sell their unpaid invoices at a discount to a factor or lender, allowing quicker access to funds tied up in receivables. Common methods include invoice discounting and factoring, with varying degrees of confidentiality depending on the service structure.
Main/
Invoice Financing
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Code
PS0114
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Name
Invoice Financing
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Version
1.0
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Category
Lending & Credit
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Created
2025-03-14
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Modified
2025-04-02
Related Techniques
- Presenting inflated or fictitious invoices to factoring or discounting companies secures funds well above legitimate receivables.
- Multiple invoicing schemes re-submit the same invoice to different providers to multiply illicit gains.
- The same receivable or invoice is factored multiple times with different lenders, each unaware that the claim has already been financed elsewhere.
- This creates parallel revenue streams on one underlying transaction, hiding illicit earnings under ordinary business receivables.
- Illicit organizations present artificially inflated invoices to factor or discount arrangers.
- Once financed, the surplus is returned to the criminals, appearing as lawful proceeds from account receivables.
- Criminals present fraudulent or inflated invoices to factors or lenders, receiving immediate funds for shipments inaccurately reported in type or value.
- The gap between actual goods shipped and invoice records enables layering of illicit proceeds through continual misrepresentations.
- Submission of counterfeit or inflated invoices to secure credit or advance payments from lenders.
- Forged vendor details and invoice amounts disguise the origin of funds and magnify opportunities for laundering.
- Fraudsters present fictitious or inflated invoices to secure early payouts from lenders or factors.
- This makes the fake ‘accounts receivable’ appear legitimate, quickly injecting illicit funds into the business.
- Fraudsters create inflated or fictitious shipping invoices, supported by forged paperwork, to receive advances from financiers.
- This technique enables them to convert illicit proceeds quickly, claiming they stem from legitimate trade receivables.
- Forged or inflated invoices are factored or discounted to obtain immediate funds.
- This creates a paper trail suggesting legitimate receivables, while concealing the illicit nature of the proceeds.
- Perpetrators present fabricated or overstated invoices to obtain immediate cash against purported trade receivables.
- The financing is repaid with illicit money, masking the unlawful origin of funds under the guise of normal business transactions.
- Fraudsters secure financing against false or inflated invoices linked to reciprocal or fictitious goods.
- Repeated use of the same invoice or overvalued documentation injects illicit proceeds into legitimate financing channels.
- Criminals submit forged invoices to obtain financing for work never performed or goods never delivered.
- Illicit funds are transformed into legitimate receivables, allowing criminals to access cash while hiding the true source of the money.
- Criminals repeatedly factor inflated or fictitious invoices, obscuring real goods or services behind complex repayment cycles.
- Re-invoicing manipulations enable launderers to raise funds far in excess of actual trade value, funneling illicit capital.
- Criminals can use artificially inflated or completely fictitious oil/fuel invoices to secure financing, disguising illicit funds as receivables.
- Repeated factoring of manipulated invoices spreads transactions across multiple lenders, creating complex layers that obscure financial investigations.
- Fictitious or inflated commodity invoices are financed, enabling criminals to quickly convert illicit proceeds into seemingly legitimate funds.
- Over-invoicing commodities repeatedly generates artificial revenue streams that mask actual trade values.
- Fraudsters submit inflated or entirely fictitious invoices to secure immediate funding from lenders or factors.
- Once financing is obtained, funds are funneled back to the perpetrators, disguising the proceeds as legitimate receivables.
- Fraudsters factor or discount inflated export invoices, quickly receiving funds exceeding the genuine transaction amount.
- The subsequent repayment cycle appears to be a standard financial obligation, helping launder illicit funds as if they were legitimate receivables.