Accounts receivable financing

Get an advance on unpaid invoices

Decision in minutes Decision in minutes

Find top accounts receivable financing rates and options

By clicking "Continue" you agree to our Terms & Conditions & Privacy Policy

Easy to qualify

Your invoice quality is what matters most. Leverage them to get the funds you need today.

Money in envelope

Same-day funding

Apply for accounts receivable financing in minutes and get funded within 24 hours.

No restrictions

It’s your money. Use it however you’d like – rent, inventory, emergencies. You’re in control.

Turn unpaid invoices into working capital

When you have an urgent business need that requires immediate access to funds, conventional financing may not be in the cards.

Accounts receivable financing is an alternative option. Here’s how it works: Lenders advance you a percentage of your outstanding invoices. You get the rest, minus fees, once the invoice is paid. In the meantime, you’re able to take care of business.

  • Coins stacked on table with blue arrow pointing up
    Advance amount Up to 80% of receivable value
  • Calendar image appearing as though the page is being flipped
    Repayment terms Until customer pays invoice
  • Clock with blue dial
    Factor rate Starting at 1.02
  • Dollar sign in circle
    Funding available Same day

Accounts receivable financing made easy

Dollar sign in circle Dollar sign in circle

Save time

A 2-minute online application is all it takes to get started. Learn More

Find the right offer

Compare rates and terms from our nationwide network of lenders. Learn More

Choose your financing

Pick the offer that works for you. Our expert advisors will help you every step of the way. Learn More

Accounts receivable financing requirements

With accounts receivable financing, your customers’ creditworthiness, not yours, is what matters most. As a result, accounts receivable financing is easy to get.

What you’ll need to qualify:

  • 1+ year in business
  • $150K+ annual revenue
  • 600+ credit score

Best accounts receivable financing uses

Use accounts receivable financing to run and grow your business.

Weather a slow season

Accounts receivable financing can keep your business above water while you wait for clients to pay.

Cover emergency expenses

In business, you need to be prepared for the unexpected. Emergencies happen. When they do, they can cause cash flow shortages. Accounts receivables financing can help you bridge the cash-flow gap.

Fund a growth opportunity

Sometimes opportunities to take your business to the next level come when you don’t have the working capital to act. Get immediate access to the money you need so you can stay focused on growing your business.

Free trapped capital

When you have a large amount of capital tied up in outstanding invoices, it can be unsettling. With accounts receivable financing, you can unlock that capital now, before you’re pressed for time—and cash.


Accounts receivable financing FAQs

What is accounts receivable financing?

Accounts receivable financing is an advance a business owner takes out against unpaid invoices.

An accounts receivables financing company gives you a percentage of your invoice’s face value. Once your customer pays you and you settle your debt, the invoice financing company forwards you the remaining balance, minus their fee.

How does invoice financing work?

Step 1. Invoice selection

Select the outstanding invoices you wish to finance.

Step 2. Accounts receivables financing company deposits capital

Lenders advance you a percentage of the invoice value. The amount you receive will depend on several factors, including the size of the invoice and the industry of your customer. Typical advance rates fall within the 80% to 90% range.

Step 3. Fees accrue

The cost of invoice financing will depend on the time it takes your customer to pay. Accounts receivables financing companies charge a weekly fee, known as a factor, until the debt is satisfied. At which point, the reserve balance, minus fees, is forwarded on to you.

What’s the difference between invoice factoring and accounts receivable financing?

The terms “invoice factoring”, “accounts receivable financing” and “invoice financing” are often used interchangeably. But they are two distinct funding products with a few small but fundamental differences.

Invoice factors buy; accounts receivable financiers advance. Factors purchase invoices at a discounted rate while receivable lending companies accept invoices as collateral for an advance.

Factors take on the responsibility of collecting payments from your customers; accounts receivable lenders leave that task to you.

In accounts receivable financing, you own the invoice and the customer relationship. That means all collection processes stay with you. In contrast, invoice factors take this responsibility over, as they, not you, own the invoice.

When does it make sense for a business to consider accounts receivable financing?

If you operate in the business-to-business (B2B) space and issue invoices with clear repayment terms, you’re eligible for invoice financing. It’s an especially useful tool if you work in an industry with long payment cycles, as financing receivables allows you to tap into the cash that’s tied up in that process.

What’s more, as lending decisions are based primarily on the quality of the invoices themselves, the review process is far faster than you’d experience when applying for a conventional small business loan. In fact, funds are issued the same day you apply in many cases.

Consider invoice financing if:

  • You operate in the B2B space and you carry a high receivables balance
  • You’re experiencing a short-term cash-flow shortage
  • You’re presented with a business opportunity, but you don’t have the cash reserves to support it

What do the best invoice financing lenders look for?

Typically, the following invoice characteristics will result in the most favorable accounts receivable financing rates and terms:

Newer invoices

Newer invoices are seen as more valuable since the possibility of payment is more likely compared to older invoices. You can increase your chances of qualifying for accounts receivable financing if your invoices have only recently gone past due (between 30-90 days).

Larger companies

Lenders find invoices more valuable if a larger business with significant annual revenue is responsible for payment. On the other hand, if your client lacks working capital, you may not qualify due to the risk that comes with your invoice.

Smaller invoices

Small invoices are less of a gamble to lenders. The less money your client owes, the more likely they are to pay.

What are the pros and cons of an accounts receivable advance?

Pros

  • Improved cash flow: Late payments can put a strain on cash flow. By taking out a loan against receivables, you gain access to cash without having to ask your clients for immediate payment.
  • Better borrower accessibility: To get approved for a conventional loan, banks often require collateral, a solid credit score and years in business. However, many small business owners don’t meet these requirements. Because accounts receivables financing is based on the likelihood that an invoice will be paid, you don’t need to provide collateral. Your customer’s ability to repay their debt is what matters most to lenders.

Cons

  • High costs: Invoice financing has higher rates than many other small business financing products. Additionally, if you fail to pay back your advance within the agreed upon repayment term, your total repayment amount will increase.
  • Hold backs: Your accounts receivable provider will typically keep a portion of your invoice funds until your invoice is paid in full.

How much does accounts receivable financing cost?

The cost of accounts receivables financing comes down to 3 things:

1) How long it takes your customer to pay
2) Your lender’s fees
3) Your quoted factor rate

Though fees vary by lender, expect to pay a single processing fee on each invoice you finance and a weekly factor until the invoice is paid in full.

To help you understand this cost structure, use our accounts receivable financing calculator.

How do I qualify for accounts receivable financing?

One of the benefits of accounts receivable financing is that your customer’s financial qualifications (not your business’s) are what matter most to accounts receivable lenders.

The best accounts receivable companies will perform a reputational analysis, business credit check and a thorough examination of your customer’s payment history with your company.

While the health of your business is less relevant, it will still come under review and will influence offered advance and factoring rates.

What you’ll need to qualify:

  • Time in business
    1+ year
  • Annual revenue
    $150k+
  • Credit score
    600+

Ready to get started? Applying is fast, easy—and most importantly— won’t impact your credit.

Our reviews

footer-image

Get started now. Have working capital today.

Answer a few basic questions about your business to see all your financing options in minutes.

GET APPROVED