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Accounts Receivable Financing
Accounts Receivable Financing offers companies capital today based on future receivables.
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Loan Amount
Up to 95% of the receivables' value
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Time to Fund
Within 24 hours
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Term Length
1 to 12 Months
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What is accounts receivable financing?
Accounts receivable financing provides immediate cash flow based on your clients’ payment profiles. This innovative financing method allows businesses to leverage outstanding invoices, accounts receivables, and recurring revenue ensuring quick access to funds and improved cash flow management. If your company faces delays in client payments, factoring can help you maintain operational liquidity and invest in growth.
What is the difference between accounts receivable financing and receivable factoring?
Accounts receivable financing and invoice factoring both provide businesses with working capital by leveraging unpaid invoices, but they function differently. Accounts receivable financing allows businesses to borrow against outstanding invoices while retaining control of collections. Invoice factoring, on the other hand, involves selling invoices to a factoring company at a discount in exchange for immediate cash. Small business owners needing quick cash flow should consider how each option impacts their financial flexibility and customer relationships before choosing the best solution.
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Minimum Requirements
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Credit Score
650
Monthly Revenue
$8K+
Time in Business
6+ Months
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Industries with long payment cycles, such as manufacturing, wholesale distribution, healthcare, and government contracting, benefit the most. These businesses often face cash flow gaps due to extended invoice terms (e.g., Net-60 or Net-90).
Yes, but lenders will assess the creditworthiness of your customers. If your clients have a history of delayed payments, lenders may lower your advance rate, charge higher fees, or require additional collateral.
Yes, it is structured as a secured loan. However, because repayment is tied to invoice collections, it functions more like a revolving credit facility rather than a traditional term loan.
Accounts receivable financing is recorded as a liability, similar to a line of credit. However, because it converts receivables into cash quickly, it can improve liquidity and working capital ratios.
Yes, but lenders will assess the creditworthiness of your customers. If your clients have a history of delayed payments, lenders may lower your advance rate, charge higher fees, or require additional collateral.
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