Accounts Receivable Financing

Asset-based loans, invoice financing, accounts receivable (A/R) financing — it's a move with many names, but the idea is simple. Instead of credit, lenders look at funds due from clients as collateral for your loan. It's a move that lets you keep your liquidity while securing the extra funds you need for what's next.

Program highlights

• Credit score is not a major factor — your clients' creditworthiness drives approval
• Unlocks tied-up equity in your outstanding invoices
• Can be used as a line of credit where applicable
• Payment terms of net 30 to 120 days
• Borrow big or small — financing ranges from $10,000 to $10,000,000

Is an accounts receivable loan right for me?

What businesses benefit most from this financing model?

This type of loan is a proven strategy for businesses experiencing high growth, that have heavy payroll, have supplier payments, plus operations that are stable but need to use cash flow elsewhere.

What's the most important qualification for this type of loan?

The most important thing is that your clients and customers are creditworthy, which will lead to higher and better approval terms.

Why should I keep my cash?

Reinvestment, expansion, new equipment — there's a wide range of reasons, all of which are possible when you can maintain liquidity instead of making more monthly payments.

Beyond the ability to keep your cash in your operation as you grow, accounts receivable financing allows many businesses to land more options from lenders on more favorable loan terms. Another advantage is being able to shift existing term or fixed debt into a line of credit or factoring facility that improves cash flow and your business's liquidity.

Advantages

• Fast approval and time to fund
• Competitive rates as low as 5%
• Funds can be used for a range of business needs
• Turn debt into credit — shift existing fixed debt into a revolving facility

Minimum qualifications

• No minimum FICO score required
• 2+ years in business
• Stable or growing business income

What you'll need to apply

• Business debt schedule
• 2 years of business tax returns
• Accounts receivable report
• Interim YTD financials (profit & loss statement & balance sheet)

Don't invoice on terms? If your revenue runs through card sales or daily deposits, compare a revenue based financing or working capital instead.