Account Receivables Financing
- $825 billion in unpaid invoices in America. Do people owe you money?
- Leverage account receivables financing and factoring today.
- You can gain quick access to cash by selling your purchase orders or receivables so you can get back to business as usual.
Take advantage of an 85% approval rate - act now!
What is Account Receivables Financing?
Accounts Receivable Financing is a type of asset-based financing solution that allows business owners to free up unpaid receivables. Upwise advances you cash collateralized by your account receivables, giving you an excellent way to put money back into your business. With A/R financing, you can get a fast advance of about 85% of the value of your receivables.
A/R Financing Details
Based On Receivable Payment
As Fast As 2 Days
$100K-$10M
Under 18%
Account Receivable Financing Pros vs Cons
PROS
No Need to Wait for A/R Payment from Customers
Based on Credit of the Receivable’s Business
Account Receivable is Used as Collateral
CONS
Lengthy Paperwork
A/R Must be from Reputable Companies
Fees are based on time it will take for A/R to be paid
How does Account Receivables Financing work?
When a customer owes you money and has an outstanding invoice, this is known as an account receivable. Basically, money that is owed for goods or a service already delivered to your customer.
AR Financing works by leveraging your account receivables as collateral for a loan. In simpler terms, the money that your customers owe you can be used to help you qualify for a small business loan, line credit or cash advance.Â
Who Qualifies for Receivables Financing?
Any business with a business-to-business model can qualify for A/R factoring, as long as they currently have outstanding receivables.
Here’s the deal.
These lenders don’t care as much about your revenue, profitability, or time in business.
Since your account receivables will act as the loan’s collateral, lenders just want to make sure the invoices make sense for them to finance. The rest of your business isn’t too important.
The maximum amount you can qualify for depends on the total amount and quality of your invoices, as well as on your creditworthiness.
It is important to note that some accounts receivable financing lenders take a look at your credit report, too.
Account Receivables Financing Requirements
over 600+
positive payment history
over $200K
1+ years
* Note: These account receivable financing requirements are based on previous Upwise customers and is just an average.
Stop waiting for payments. Reach out to us now and unlock your business's full potential.
What does Account Receivables Financing cost?
As we’ve mentioned, invoice financing can be an expensive way to receive funding for your business. But it’s essentially the cost of having cash on hand now, instead of later.
Here’s a snapshot into what the cost structure would look like.
Financing & Fees of Accounts Receivable Financing
Let’s say you have a $100K invoice with 30-day terms.
A financing company might immediately advance you 85% of that amount—$85K—and hold $15K in reserve.
Your customer then pays that invoice 2 weeks later. After subtracting the 3% processing fee of $3K, the financing company keeps its factoring fee—1% per week, which in this example is 2% or $2K—and gives you the $10K left over.
Why is Account Receivable Factoring Worth the Cost?
You might be feeling like $5K is a steep price to pay—but that all depends on your business’s financials.
If you needed money to make payroll a week after sending out that invoice, then your accounts receivable financing fees don’t seem too bad after all.
If you have an invoice, that is NET 30, 60 or even 90 days – getting funds immediately could be well worth the cost.Â
Your business’s financial situation might seriously benefit from extra cash flow—so capital right away could definitely outweigh the negative of those fees.
Apply for an Account Receivables Loan Now.
- Don't let outstanding invoices hold you back.
- Tired of waiting for customers to pay? Get a boost!
- Upwise A/R Financing can provide you with instant liquidity.
Stop waiting for payments - take advantage today!
Documents You'll Need to Apply
Driver’s License
Voided Business Check
Business Bank Statements (Last 4 Months)
Account Receivables Report for net 90 days
You may also be requested to provide the following for larger dollar amounts over $100K:
Balance Sheet
Profit & Loss Statements
Business Tax Returns
Personal Tax Returns
In the world of small business ownership, unexpected challenges are inevitable, no matter how well you plan. The ability to think on your feet and find swift solutions can make all the difference between thriving and being left behind by your competitors.
When every moment counts, our Account Receivables Financing offers a rapid response, providing you with the financing you need in as little as 24 hours. Don’t let time and opportunity slip away – act now to secure the financial support that can keep your business thriving.
Why Upwise for A/R Financing
Quick & easy application
Our simple 15-minute application gets you on your way to funding quickly. Most applicants receive a fast decision within hours of applying. Then just choose your loan terms and you could have funds deposited into your account as soon as 24 hours.
Ensure you make the wise choice
Every Upwise applicant gets a dedicated funding advisor who takes the time to understand your business and it's unique needs. We are here for your support throughout the entire funding process.
Access multiple financing options
Upwise has an extensive product suite and a network of 100+ lenders. This means you're more likely to find the best match for your funding needs.