Accounts receivable funding, also known as invoice financing or factoring. This is a financial arrangement where a company uses its outstanding accounts receivable as collateral to obtain immediate cash from a financial institution. As one of the leading accounts receivable factoring companies, we provide short-term borrowing solutions that help businesses meet financial obligations and improve cash flow.
Businesses can quickly obtain cash from their outstanding invoices through a method known as invoice factoring or accounts receivable loans. Here is a description of the typical procedure:
A company provides goods or services to its customers and generates invoices with payment terms, usually 30 to 90 days.
The company applies for accounts receivable financing with a financial institution or a factoring company. The financing provider evaluates the creditworthiness of the company's customers rather than the company itself, as the invoices act as collateral.
During the verification process, the financing provider verifies the invoices and the creditworthiness of the customers. They may conduct credit checks and assess the quality of the accounts receivable.
Based on the evaluation, the financing provider offers a financing arrangement, usually a percentage of the invoice value. The advance rate can vary, but it typically ranges from 85% to 90% of the invoice amount.
After the approval of financing offer, the financing provider transfers the agreed-upon percentage of the invoice value to the company's bank account. This provides immediate cash flow to the company.
The financing provider takes over the responsibility of collecting the payments from the customers based on the invoice terms. They may handle the entire collections process or just the payment processing, depending on the agreement.
When a customer pays an invoice, they normally send the funds straight to the finance source. The financing provider deducts their fees, which usually include a discount fee or interest, and returns the remaining amount (reserve) to the company. The reserve amount is usually between 10% to 15% of the invoice value.
We work with businesses across various stages of growth and financial situations. Whether navigating rapid expansion, managing debt restructuring, or overcoming operational challenges, our solutions are designed to provide flexible capital when it is needed most.
Our services are available nationwide, supporting companies across the United States with tailored financing solutions.
We offer financing facilities ranging from $1 million to over $50+ million, structured to meet the unique cash flow needs of businesses.
Receive competitive advance rates tailored to your industry, client base, and transaction structure. Our flexible approach allows rates typically ranging from 0.75% to 1.50%, based on your business profile.
Financing is secured against valid business-to-business invoices. Invoices must represent completed services or delivered products to qualified customers.
Our rates are structured to be competitive within the industry. Pricing is based on variables such as your company’s annual sales volume, average invoice size, payment terms extended to your customers, and the overall credit quality of your customer base.
Cash Flow is essential for sustainability of large capital businesses. By receiving immediate cash against outstanding invoices, companies can bridge the gap between invoicing and actual receipt of payment. This helps meet operational expenses, invest in growth opportunities, or cover unforeseen costs.
It provides businesses with better control over their working capital by converting factoring accounts receivable into cash, allowing them to manage their finances more efficiently.
Accounts receivable financing is not considered a loan similar to a line of credits where monthly repayment with interest is involved. Instead, it uses the invoices as collateral, reducing the need for traditional borrowing. The company's creditworthiness is also less critical compared to other financing options.
By outsourcing the collections process to the financing provider, businesses can save time and resources that would otherwise be spent on chasing payments. This allows businesses to focus on expansion and core operations, which ultimately contributes to their overall success.
Partner with a team that understands your business needs, delivers tailored financial solutions, accelerates access to capital, and supports your growth with our expert guidance and long-term commitment.
Steady cash flow is the foundation of every successful business. Our team brings specialized financial knowledge and industry experience to help convert outstanding invoices and receivables into reliable working capital. This ensures operations remain well-funded, supporting both immediate obligations and long-term growth strategies, even during market fluctuations.
Every business operates on its own timeline and faces unique challenges. We provide customized financing structures designed around your billing cycles, client payment patterns, and industry-specific demands. Whether navigating seasonal shifts, complex supply chains, or evolving customer needs, our flexible solutions adapt to your operations, helping you maintain financial stability and efficiency.
Timing is everything in today’s fast-paced markets. That is why we streamline access to working capital, enabling your business to respond quickly to new opportunities, manage unexpected expenses, or bridge short-term funding gaps. With a simplified process and fast turnaround, you can act decisively and maintain a competitive edge without unnecessary delays.
Our involvement goes well beyond funding. A dedicated team manages the entire financing process, including collections, credit checks, and documentation. This reduces the administrative burden on your internal staff, allowing them to focus on core business activities while ensuring that financial processes remain smooth, compliant, and efficient.
We build long-term relationships designed to evolve with your business. As your company grows, enters new markets, or adjusts to industry shifts, we remain a proactive partner, continuously refining financing strategies to match changing needs. This commitment ensures you always have a reliable financial resource to support your ongoing success.
Unpaid invoices shouldn’t hold your business back. Our accounts receivable financing solutions provide timely access to capital, helping you manage expenses, support operations, and move forward with confidence.
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Staffing companies use receivables financing to maintain payroll, cover operational costs, and scale recruitment efforts while waiting for client payments, ensuring consistent cash flow and uninterrupted workforce management.
Transportation companies leverage receivables financing to manage fuel costs, vehicle maintenance, and driver payroll. This provides working capital without debt, helping businesses operate efficiently despite long payment cycles.
Construction firms rely on invoice financing to bridge payment gaps between project milestones. It provides steady cash flow to manage labor, equipment, and material expenses without delaying project timelines.
Government contractors use receivables financing to fund operations while awaiting government payments. This ensures they can manage payroll, cover expenses, and fulfill contract obligations without financial strain or delays.
Manufacturers utilize receivables financing to maintain production schedules, purchase raw materials, and cover operational costs while managing extended payment terms from buyers and maintaining strong supplier relationships.
Logistics companies use invoice financing to cover transportation costs, warehouse fees, and payroll. This ensures seamless operations and service delivery, even when client payments are delayed by lengthy terms.
Healthcare providers use receivables financing to manage cash flow disrupted by delayed insurance reimbursements. It helps cover payroll, purchase medical supplies, and maintain patient care without waiting on payments.
Business service firms leverage invoice financing to stabilize cash flow, allowing them to meet payroll, invest in growth, and manage day-to-day expenses while clients settle invoices on extended terms.
Technology firms use receivables financing to manage cash flow during long project cycles and delayed client payments. It helps fund payroll, software development, and infrastructure costs while waiting for revenue.
Oil and gas service companies use receivables financing to cover payroll, field operations, and equipment costs. It provides the liquidity needed to manage large projects and navigate industry payment cycles.
We partner with businesses that face dynamic financial demands and require flexible, dependable funding solutions. Here are common situations where our clients turn to us
Businesses scaling quickly often outpace their available cash flow. Our financing helps bridge the gap between growing sales and incoming payments.
Companies with cyclical or seasonal revenue patterns benefit from consistent cash flow to maintain operations during slower periods.
Slow-paying customers can strain working capital. We provide access to funds so you are not dependent on unpredictable payment cycles.
Importers often face upfront supplier payments. Our solutions help finance these obligations without disrupting overall cash flow.
Some opportunities or challenges require immediate access to capital. We can structure funding to be delivered within 3 to 5 business days.
When traditional lines of credit are reduced or unavailable, our financing offers an alternative to maintain liquidity and business continuity.
Exporters with extended payment terms can access capital against their receivables, improving cash flow while continuing to serve international markets.
Companies fulfilling large or unexpected orders often need upfront funding for production and delivery. We help secure this capital to meet demand confidently.