Your balance sheet is strong but your bank account is empty.
Accounts receivable financing turns your outstanding invoices into a borrowing base. Unlike factoring, you keep ownership of the receivables and continue collecting from customers yourself — the lender simply advances against the ledger.
Accounts Receivable Financing at a glance
- Loan amounts
- $100,000 – $20,000,000
- Term length
- Revolving facility, typically 12 – 24 months
- Typical pricing
- Roughly 1% – 3% per month on drawn balances
- Funding speed
- 1 – 3 weeks to set up, then same-day draws
- Credit guidance
- Ledger quality and customer credit drive the decision
Key Benefits
- Advance up to 90% of eligible receivables
- Confidential — customers deal only with you
- Availability grows as sales grow
- Cheaper than most short-term alternatives
Best Fit For
- B2B companies with creditworthy customers
- Businesses that don't want customers contacted
- Wholesalers and distributors with NET 30–90 terms
- Companies outgrowing their bank line
Why use a broker instead of going to your bank?
Advance rates, eligibility rules, and concentration limits differ wildly between AR lenders. We negotiate the borrowing base so more of your ledger actually counts.
Learn more about working with a brokerHow accounts receivable financing compare
We broker every product on this list, so this comparison is about fit — not about steering you toward one option.
Compared with
Invoice factoring
Factoring sells the invoice and the factor collects. AR financing is a loan secured by the receivables — you keep collections, and your customers never know a lender is involved.
Compared with
Bank line of credit
A bank line is sized on historical financials and covenants. An AR facility is sized on your live receivables ledger, so availability rises automatically as you invoice more.
Accounts Receivable Financing: frequently asked questions
How is accounts receivable financing different from factoring?
In AR financing you borrow against invoices and keep ownership and collections. In factoring you sell the invoices outright and the factor collects from your customers.
What percentage of my receivables can I borrow?
Typically 80% to 90% of eligible receivables. Invoices past 90 days, related-party billings, and heavily concentrated customers are usually excluded from the borrowing base.
Do my customers get notified?
No. AR financing is generally confidential, which is the main reason businesses choose it over factoring.
What does accounts receivable financing cost?
Commonly 1% to 3% per month on the drawn balance, plus a modest facility or monitoring fee. Pricing improves with volume and customer credit quality.
How long does it take to set up?
One to three weeks, including a review of your AR aging report and customer concentrations. After that, draws typically fund the same day.
More answers on the business financing FAQ and in the commercial lending glossary.
Other financing solutions
Working Capital Loans
Cover payroll, inventory, and day-to-day expenses with flexible short-term capital.
Commercial Real Estate Loans
Purchase, refinance, or build commercial properties with structures matched to your project.
Bridge Loans
Move quickly on opportunities while you arrange long-term financing.
Ready to explore accounts receivable financing?
A 15-minute conversation is all it takes to know if this is the right fit. No obligation.