The credit rating of the orderer is key in determining eligibility for this type of loan, not yours. The job or service you’re providing must be fully completed and make sure you have a clear business record.
What is Accounts Receivable Financing?
A/R financing (factoring) is the selling of purchase orders or accounts receivables for cash now. This type of financing allows the business owner to receive capital in the event you are owed money for services completed.
What Types of Businesses is it Good For?
This type of financing is valuable when a contract for products or services is received, but the business lacks the cash to fulfill on the contract.
What are the Minimum Requirements?
The orderers credit rating is key in determining eligibility for the loan. Personal credit is not usually examined by the lender when determining approval. You need to be invoicing creditworthy businesses for your product or service.
How Much Will A/R Financing Cost?
A/R Financing Loan Calculator
The rates are generally lower than what you would receive with a cash advance loan or a daily payment loan depending on the strength of the creditor. There also can be an additional cost per invoice fee.
Why Use Lendio?
Lendio’s mission is to empower your small business by making small business loans simple through options, speed, and trust. Whether you are looking for an acquisition loan or A/R financing, Lendio offers hundreds of different loan products from a variety of lenders. Finding out which business loan is best for you is why we’re here.
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AR Factoring Might Be a Good Option for You