Customer small business financing solutions delivered through a single, online application.
Free access to multiple funding solutions
See funding solutions from 75+ nationwide lenders with a single application.
Apply for financing, track your business cashflow, and more with a single lendio account.
Unpaid invoices are a problem in all types of businesses. AR financing is the solution.
TIME TO FUND
Accounts Receivable Financing, also known as AR Financing, is a financial solution where a business sells its outstanding invoices or receivables to a finance company. This allows the business to receive immediate cash, eliminating the waiting period associated with client payments. In essence, AR financing turns your unpaid invoices into instant capital, enabling businesses to maintain a steady cash flow and invest in growth opportunities without being constrained by slow-paying customers.
While both accounts receivable financing options, namely accounts receivable loan (AR loan) and accounts receivable factoring, aim to provide businesses with immediate cash to enhance liquidity, there are crucial differences between the two.
An accounts receivable loan (sometimes used interchangeably with accounts receivable financing) is essentially a credit agreement where your business’s unpaid invoices serve as collateral. You maintain control over your accounts receivable and are responsible for collecting payment from your clients. The loan must be paid back based on the agreed terms, regardless of whether your customers have paid their invoices.
On the other hand, accounts receivable factoring involves selling your unpaid invoices to a factoring company at a discount. The factoring company takes over the responsibility of collecting payments directly from your clients. In this case, there’s no debt to repay as the transaction is treated as a sale, not a loan. This is the most common type of accounts receivable financing.
Accounts receivable financing operates in a rather straightforward process. Here’s how it works:
Sure, you can go the bank route with a long application process and 75% rejection rate. But if you’re looking for financing in this lifetime, Lendio offers a faster, easier application process.
It’s secured with bank-grade encryption and SSL technology, so you know your information is safe.
We pair you with loan options from our network of 75+ lenders. Our dedicated funding managers can help you weigh the pros and cons of each option.
Once you’re approved, you’ll be able to access your capital in as little as 24 hours.
funded through us
lenders in our network
Sterling HannemannCo-Owner of Seven Brothers
Chloria ChandlerOwner of Bobbee O’s BBQ
With receivable loans, you can increase your cash flow as fast as 24 hours. You’ll quickly determine if you qualify and get early payment with invoice financing. This immediate cash can cover operational expenses or invest in growth opportunities.
Don’t Wait to Get Paid
With Accounts Receivable Financing, you no longer need to wait for weeks or months to get paid by clients. This solution converts outstanding invoices into immediate cash, bypassing the hassle of delayed customer payments. It’s a proactive way to manage your cash flow and ensure smooth business operations.
No Credit Score Requirements
Accounts receivable financing stands out because it typically doesn’t require a credit check. Unlike traditional loans, the focus is on your customers’ creditworthiness. The financing company considers their payment history and reliability, as their payments cover the funding. This makes it an ideal solution for businesses with a strong customer base and consistent payment records, even if their credit scores aren’t perfect.
To qualify for accounts receivable financing, the following are the standard requirements:
There are four types of AR financing available:
This type of financing helps to keep cash flow in check so that your business operations and growth aren’t stunted due to outstanding invoices.
Accounts receivable is a type of debt owed to a small business when a customer purchases a product or service but has not paid yet.
Applying is free and won’t impact your credit
Talk to a rep at (855) 853-6346Mon-Fri 7:30am-5pm MST
Terms & Agreements
Your Privacy Choices
Find a Local Representative
Resources for Lenders
How It Works
Small Business Loans
Building Business Credit
Business Loans Near Me