Accounts Receivable Financing / Invoice Factoring
What is Accounts Receivable Financing?
With accounts receivable finance, you can obtain quick cash by using the unpaid invoices from your business as security. Usually, it gives you 80% of the invoice value right away, and the factoring firm takes care of the consumer payments.
You get the leftover amount after payment in full, less a factoring charge. This charge, which normally begins at 3% of the total invoice amount, is contingent upon how soon your client makes payment. You can obtain money from other receivables outside invoices, such as purchase orders and inventory. Compared to traditional business loans, AR financing, which is secured by the assets or obligations of your company, typically has more flexible standards, making it easier to qualify for, even for startups.
What is Accounts Receivable Financing Or Invoice Factoring?
With accounts receivable finance, you can obtain quick cash by using the unpaid invoices from your business as security. Usually, it gives you 80% of the invoice value right away, and the factoring firm takes care of the consumer payments.
You get the leftover amount after payment in full, less a factoring charge. This charge, which normally begins at 3% of the total invoice amount, is contingent upon how soon your client makes payment. You can obtain money from other receivables outside invoices, such as purchase orders and inventory. Compared to traditional business loans, AR financing, which is secured by the assets or obligations of your company, typically has more flexible standards, making it easier to qualify for, even for startups.
Minimum requirements for accounts receivable financing
In general, you need to have a running company with creditworthy clients and unpaid bills that may be used as collateral in order to be eligible for accounts receivable financing.
Annual Revenue
$100,000
Credit Score
500+
Time in Business
5 month minimum
What Documents Are Needed To Apply?
Drivers License
Voided Business Check
Bank Statements
Balance Sheet
Profit and Loss Statements
Business Tax Return
Personal Tax Return
Business Plan
Business Debt Schedule
Apply for a term loan in as little as 10 minutes.
1. Complete your application
In order to match you with the lender that offers the best rates and conditions for your needs, provide a few details about your business and personal loan preferences.
2. Speak to our underwriter
Meet your personal underwriter here to make sure we have all the paperwork and data required to provide you with the best alternatives for your company as quickly as possible.
3. Review your loan options
Examine the various loan alternatives accessible to your company and select the one that best suits your needs right now.
4. Receive funds
In less than 24hrs, when you determine what works best, we’ll deposit the funds into your account.
Benefits of accounts receivable financing
- Improved Cash Flow: Through the elimination of the waiting period for customer payments and an improvement in liquidity, accounts receivable finance enables firms to access cash immediately based on their outstanding invoices.
- Reduced Collection Hassles: By handling debt collection, the factoring company relieves businesses of the laborious and occasionally challenging task of following up with customers on payments.
- Easier Qualification: The qualifying requirements for accounts receivable finance are frequently more lenient than those of standard lending techniques. Since it is primarily based on the quality of the receivables rather than the creditworthiness of the firm, it might be especially advantageous for newer or less creditworthy businesses.
Why we are the best for your
accounts receivable financing?
$100M Funded to Small Businesses Throughout the US
Best Hands when you think of Factoring
5000+ Loans Funded over 25 years