Accounts Receivable Financing

Accounts receivable financing, also known as invoice factoring, allows businesses to sell unpaid invoices to a financial institution for immediate cash. Instead of waiting 30-90 days for customers to pay, businesses receive a percentage of the invoice value upfront, improving cash flow and covering operational expenses.

Businesses that qualify for accounts receivable financing typically:

• Provide B2B (business-to-business) or B2G (business-to-government) services.
• Have outstanding invoices with extended payment terms (30-90 days).
• Work with creditworthy customers who have a reliable payment history.

Even businesses with low credit scores or cash flow issues may qualify since approval is based on customer creditworthiness, not the business’s credit rating.

Funding amounts vary based on the type of factoring line chosen:

• Notification Factoring: $20,000 – $5,000,000
• Non-Notification Factoring: $20,000 – $200,000

Higher credit lines and lower rates are available for businesses that choose notification factoring, where customer invoices are verified before funding.

• Pre-qualification decisions are typically provided within 24 hours.
• Funding is available within 3 to 5 weeks, depending on invoice volume and customer payment history.

Since accounts receivable financing does not require collateral or extensive paperwork, approval times are much faster than traditional bank loans.

• No debt added to your balance sheet—invoice factoring is not a loan.
• Faster access to cash—funding is based on invoice value, not credit history.
• No collateral required—unlike traditional loans, no business assets are at risk.
• Flexible funding—businesses can factor individual invoices or multiple accounts receivable as needed.