Accounts Receivable Financing

Transform delayed invoices and late customer payments into liquidity.

What Do You Need to Qualify?

BoomCityFunding.com Offers the Best Small Business Financing

6+ Months In Business

$100,000 in Current Receivables

No Minimum Credit Score

What Is Accounts Receivable Financing?

Accounts receivable financing helps you obtain capital by using receivables as collateral. This may involve invoice factoring, which is the purchase of receivables for cash flow. Accounts receivable financing is a quick and simple path to getting the power you need to move forward.

After selling your invoice or book of receivables, the factoring company is responsible for receiving payment—taking this completely off your own plate.

By selling your invoice(s) to a lender, you can get the capital you need to pursue new opportunities or manage cash flow and payroll right away. Because the invoice itself functions as collateral, you won’t have to put up assets or real estate to get this funding.

From eCommerce businesses to construction companies, any business that leverages its accounts receivable can use this type of financing to secure short-term capital, whether through an A/R loan or through factoring.

Accounts receivable financing mostly relies on the value of your outstanding invoices, so credit scores play less of a role than other financing products. As long as you have quality receivables that meet or exceed a lender’s minimum requirements, you’ll be able to reach an approval—if you’re working with the right lender for your business.

Can I Use Accounts Receivable Financing if I Have Bad Credit?

How Does Accounts Receivable Financing Work?

Accounts receivable financing exchanges your outstanding receivables for short-term funding. The lender collects your invoices, assuming to be paid in time through your clients, and the borrower receives anywhere from 75% to 98% of the total value. This is a short-term capital solution. In most cases, lenders want to be repaid within 60 to 90 days of receiving your invoices. This is done as clients pay their outstanding invoices to your business, not through a formal repayment schedule. Unlike other forms of financing, you won’t make payments to your lender physically. The exchange of invoices for cash is the entirety of the transaction between you and the lender, who will recoup the amount as clients pay their invoices. The lender’s “fee” comes from the total value of your invoices, which translates into the diminished value the borrower receives. Despite the lower value, it’s a great way for businesses to transform late payments into immediate liquidity. Still, it’s important to work with a reputable, transparent lender, as there have been situations where clients are alerted to the change in ownership of their invoices. At National, you never have to worry about that. Our 75+ lender marketplace contains only the top lending institutions in the country, and we’ll never put you in a position that jeopardizes your relationship with clients.