Vendor Capital Finance
Vendor Capital Finance LLC purchases late, unpaid invoices from vendors of the State of Illinois at 100% of face value under the state's Vendor Payment Program and Vendor Support Initiative, paying vendors in 7-10 days and earning revenue from the state's statutory prompt payment penalty.
- Company typePrivate
- Founded2016
- HeadquartersNew York, United States
- Headcount1–10
- GTM typeB2B
- OfferingServices
What Vendor Capital Finance does
Vendor Capital Finance LLC (VCF) is a privately held Illinois-domiciled limited liability company founded in 2016 and headquartered at 79 Madison Avenue, 17th Floor, New York, NY. The company operates as a Qualified Purchaser in the State of Illinois' Vendor Payment Program (VPP) and Vendor Support Initiative (VSI), purchasing late, unpaid invoices from vendors of the State of Illinois at 100% of face value. VCF pays vendors 90% of the invoice value within approximately 10 days of state assignment, with the remaining 10% remitted in two installments as the State repays VCF.
The underlying mechanism is a true-sale invoice purchase: VCF monetizes the State's statutory prompt payment penalty, which accrues at 1% per month beginning on day 91 past due, rather than charging the vendor any discount or fee. Vendor participation requires State of Illinois approval under the VPP/VSI eligibility rules. Since inception the company has purchased over $800 million of state receivables across more than 100 vendors, with invoice sizes ranging from $500 to $50 million and spanning small non-profit social service organizations, mid-market regional companies, and Fortune 500 enterprises.
The business is run by a small team (1-10 employees) led by founder/CEO Le S. Chen — previously of Société Générale's municipal finance and trading effort and Moody's Investors Service — together with Director of National Sales and Business Development Forrester Faia. The company is certified as a Minority Business Enterprise by the State of Illinois, holds no disclosed outside institutional investors, and operates its marketing and origination through its own website (powered by third-party platform provider Gramercy), direct phone/email contact, and referrals from the State of Illinois' vendor payment infrastructure.
Vendor Capital Finance firmographics
Firmographics- Name
- Vendor Capital Finance
- Legal name
- Vendor Capital Finance LLC
- Website
- https://vcfllc.com
- Company type
- Private
- Founded year
- 2016
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- Vendor Capital Finance LLC purchases late, unpaid invoices from vendors of the State of Illinois at 100% of face value under the state's Vendor Payment Program and Vendor Support Initiative, paying vendors in 7-10 days and earning revenue from the state's statutory prompt payment penalty.
- Ownership category
- akta.pro rank
Vendor Capital Finance industry classification
Industry- Product category
- Invoice Factoring / Government Vendor Financing
- NAICS
- Sales Financing (52222)
- SIC
- Finance Lessors (6172)
- akta.pro primary industry
- Invoice Trading / Receivables Marketplace (P2P) (FSAKAHAH)
Keywords
Where Vendor Capital Finance is headquartered
LocationHeadquarters
- HQ city
- New York
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
Vendor Capital Finance business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales
Revenue model
- Invoice Purchase - Prompt Payment Penalty: VCF purchases late, unpaid State of Illinois invoices at 100% of face value. VCF pays vendors 90% up-front within 10 days of state assignment and the remaining 10% in two installments when the State repays. VCF's revenue comes from taking over the prompt payment penalty owed by the State, which starts accruing at 1% per month on the 91st day past due.
- True Sale of Invoices: VCF purchases invoices as a true sale transaction. Vendors receive 100% of their invoice value with no fees, no discounting, and no ongoing obligations. The company monetizes through the state's prompt payment penalty accrual rather than through vendor fees.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Other | Pay-as-you-go | No fees or obligations for vendors |
Go-to-market motion2 records
Distribution channels3 records
Marketing channels4 records
Vendor Capital Finance product offering
Product offeringCore offering
Vendor Capital Finance purchases late, unpaid State of Illinois invoices from approved vendors at 100% of face value under the state's Vendor Payment Program (VPP) and Vendor Support Initiative (VSI). Vendors receive 90% of the invoice value upfront within 10 days of state approval and the remaining 10% in two installments as the state repays VCF, with no fees, no discounting, and no ongoing obligations to the vendor.
Product overview
Vendor Capital Finance operates as a unified invoice financing platform with two core offerings: the Vendor Payment Program (VPP) and Vendor Support Initiative (VSI). The company purchases late, unpaid State of Illinois invoices from vendors at 100% of their face value, paying 90% upfront within 10 days of state approval and the remaining 10% upon state repayment. Since early 2016, VCF has funded over $800 million in state invoices across more than 100 vendors, ranging from small nonprofits to Fortune 500 companies.
Differentiator
Problem solved
Functional benefit
Products and services
- Invoice Purchasing Service Core service that buys late, unpaid State of Illinois invoices from approved vendors at 100% of their face value, paying 90% upfront within 10 days of state approval and the remaining 10% in two installments as the state repays, with no fees, no discounting, and no obligations to the vendor.
- Vendor Payment Program (VPP) Participation VCF's participation channel in the State of Illinois' Vendor Payment Program, enabling vendors with prompt-pay-eligible unpaid state invoices to assign those invoices to VCF and receive 90% upfront within 10 days plus the remaining 10% in two installments upon state repayment.
- Vendor Support Initiative (VSI) Participation VCF's participation channel in the State of Illinois' Vendor Support Initiative, enabling vendors with invoices that do not yet have a state appropriation to receive funding under terms equivalent to VPP, addressing cash flow during periods when Illinois operated without a budget.
Quantifiable outcome
- Vendors receive 90% of invoice value within 10 days of State approval
- +3 more outcomes
Companies that use Vendor Capital Finance
Customer profileNamed customers1 record
Segments1 record
Ideal customer profiles1 record
Vendor Capital Finance technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Vendor Capital Finance partnerships and signals
Strategic signalPartnerships
Three partnerships are on record, tiered core and minor.
- State of Illinois - Vendor Payment Program (VPP)coreVCF is a Qualified Purchaser in the State of Illinois' Vendor Payment Program (VPP), established in late 2012. This designation allows VCF to purchase late, unpaid invoices from Illinois state vendors at 100% of face value, paying 90% up-front and the remaining 10% in installments as the state repays.
- State of Illinois - Vendor Support Initiative (VSI)coreVCF participates in the Vendor Support Initiative (VSI), created in 2015 when the State of Illinois began operating without a budget. The VSI allows vendors to receive funding under the same terms as VPP for invoices that do not yet have a state appropriation.
- GramercyminorGramercy powers VCF's platform infrastructure. Gramercy logo appears as 'Powered By' on VCF's website.
Scale indicators4 records
Recent moves5 records
Expansion highlights3 records
Vendor Capital Finance competitors and assessment
Company assessmentDirect peers
- Porter Capital: Porter Capital is a commercial factoring company purchasing receivables from SMBs across industries. Like VCF, it monetizes through the spread between invoice face value and customer payment timing, making it a direct functional peer in invoice purchasing.
- Riviera Finance: Riviera Finance is a commercial factoring company that purchases receivables from SMBs. Its business model of buying invoices and advancing cash against them parallels VCF's receivables purchase structure, though it operates across industries rather than government vendors.
- BlueVine: BlueVine is an online invoice factoring and working capital platform serving SMBs with unpaid receivables. It is the closest SMB-facing invoice factoring peer to VCF's receivables purchase model, though it serves a broader commercial customer base rather than government vendors.
- eCapital: eCapital is a factoring and asset-based lending company purchasing receivables from SMB and mid-market businesses. Its invoice purchasing model and reliance on receivables spreads make it functionally comparable to VCF's receivables purchase business.
- Fundbox: Fundbox provides invoice- and receivables-based financing to SMBs. Its core mechanism of advancing cash against unpaid invoices mirrors VCF's receivables purchase model, though Fundbox targets private-sector SMBs rather than government vendors.
- AltLine (The Southern Bank Company): AltLine is a bank-affiliated invoice factoring provider purchasing receivables from SMBs. Its core model of buying invoices and earning the spread between advance and customer payment parallels VCF's receivables purchase business.
- Crestmark Bank: Crestmark Bank provides factoring, asset-based lending, and receivables purchasing to SMBs. It is a direct factoring peer to VCF and notably a former employer of VCF's Director of National Sales, indicating direct familiarity with the VCF model.
- TCI Business Capital: TCI Business Capital is a factoring company purchasing invoices from SMBs across multiple industries. Its receivables purchase model and reliance on customer payment timing for monetization make it a direct functional peer to VCF.
Broad incumbents
- Bibby Financial Services: Bibby Financial Services is a global invoice finance and factoring provider. As a much larger, established player, it represents a broad incumbent in the receivables purchase space where VCF operates, though its focus is commercial rather than government receivables.
Emerging players
- Kabbage (American Express Business Blueprint): Kabbage, now part of American Express Business Blueprint, historically offered invoice-based working capital lines to SMBs. While its product mix has shifted, its historical invoice-financing focus overlaps with VCF's receivables purchase model.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat3 records
Key risks6 records
Key highlights6 records
Customer concentration
Vendor Capital Finance social profiles
Digital presenceVendor Capital Finance compliance and trust
Trust signalCompliance1 record
Vendor Capital Finance financial estimates
Financial estimateRevenue estimate
Valuation estimate
Vendor Capital Finance leadership team
Management profileNumber of profiles
Profiles2 records
Vendor Capital Finance funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Vendor Capital Finance M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Vendor Capital Finance
What does Vendor Capital Finance do?
Vendor Capital Finance purchases late, unpaid State of Illinois invoices from approved vendors at 100% of face value under the state's Vendor Payment Program (VPP) and Vendor Support Initiative (VSI). Vendors receive 90% of the invoice value upfront within 10 days of state approval and the remaining 10% in two installments as the state repays VCF, with no fees, no discounting, and no ongoing obligations to the vendor.
Is Vendor Capital Finance a public or private company?
Vendor Capital Finance is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was Vendor Capital Finance founded?
Vendor Capital Finance was founded in 2016. It employs 1 to 10 people.
Where is Vendor Capital Finance based?
Vendor Capital Finance is headquartered in New York, United States, in the North America region.
How does Vendor Capital Finance make money?
Two revenue lines are on record. Invoice Purchase - Prompt Payment Penalty is the primary driver. The others are true Sale of Invoices.
Who are Vendor Capital Finance's main competitors?
Direct peers on record are Porter Capital, Riviera Finance, BlueVine, eCapital, Fundbox, AltLine (The Southern Bank Company), Crestmark Bank and TCI Business Capital. Bibby Financial Services is listed as a broad incumbent. Kabbage (American Express Business Blueprint) is listed as an emerging player.
Does Vendor Capital Finance have an API?
No public API is recorded for Vendor Capital Finance.
What industry is Vendor Capital Finance in?
Vendor Capital Finance's product category is Invoice Factoring / Government Vendor Financing. Its primary akta.pro industry code is FSAKAHAH, Invoice Trading / Receivables Marketplace (P2P). Its NAICS code is 52222 and its SIC code is 6172.