Accounts Receivable 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 Accounts Receivable 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 Accounts Receivable Loans 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.
Receivable Financing Requirements
over 600+
positive payment history
over $200K
1+ years
* Note: These receivables finance 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 truly set Mike apart was his honesty. He reviewed multiple lender options with me in a fair, transparent way, walking me through the pros and cons of each and helping me understand every angle. He encouraged me to move forward only with what felt right for my business, never once making me feel pressured to choose him or Upwise. That level of professionalism is rare.
Mike also worked hard to build genuine personal rapport — something no other representative I spoke with did. He took the time to understand my business, explored different paths, and made sure I felt confident and comfortable throughout the decision-making process.
The follow-up from Mike and every member of his team has been above and beyond anything I’ve experienced with other lenders. Every interaction feels thoughtful, client-focused, supportive and most important- genuine. I’m incredibly grateful for the experience and would confidently recommend Mike to anyone looking for a knowledgeable, ethical, and truly client-first lending partner.
Update: Leo contacted me, and after basically insulting me concerning their prior behavior, I decided to let them run my application. After being ghosted for the day, they finally came back and denied due to another loan my business was involved in. These people get their feelings hurt way to easy to be in this business. I would not recommend this company to anyone.
Upwise
What does an Account Receivable Loan 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
What Invoices Qualify for Accounts Receivable Financing?
One of the most common questions business owners ask is whether their invoices qualify for accounts receivable financing. While every lender and financing provider has its own requirements, most programs focus on the quality of your customers, the age of your invoices, and the likelihood of repayment.
In general, accounts receivable financing works best for businesses that invoice other businesses or government agencies and have a history of paying their invoices on time.
Invoices That Commonly Qualify
Many financing providers will consider invoices from:
- Large corporations
- Government agencies
- Municipalities
- Healthcare organizations
- Educational institutions
- Well-established private companies
- Investment-grade businesses
- Fortune 500 companies
Industries That Frequently Use Accounts Receivable Financing
- Staffing and recruiting firms
- Manufacturing companies
- Transportation and logistics businesses
- Government contractors
- Wholesale distributors
- Business service providers
- Healthcare providers
- Technology companies
Typical Invoice Requirements
Most providers prefer invoices that are:
- Business-to-business (B2B)
- Already delivered or completed
- Free of disputes
- Verifiable with the customer
- Due within standard payment terms
- Less than 90 days old
Invoices That May Not Qualify
Some invoices may be more difficult to finance, including:
- Consumer invoices (B2C)
- Past-due invoices
- Disputed invoices
- Progress billing invoices
- Related-party transactions
- Invoices from customers with poor payment history
- Foreign receivables without additional support
Do Government Invoices Qualify?
Yes. Many accounts receivable financing providers work with federal, state, and local government contractors. Government receivables are often considered attractive because of the credit quality of the payor.
Can I Finance Only Certain Invoices?
In many cases, yes. Some financing programs allow businesses to finance specific invoices, while others establish a revolving accounts receivable facility based on the overall receivables portfolio.
How Providers Evaluate Your Receivables
When reviewing an accounts receivable financing request, lenders typically consider:
- Customer creditworthiness
- Invoice aging
- Payment history
- Industry risk
- Customer concentration
- Total accounts receivable volume
Because every financing program is different, the best way to determine eligibility is to have your accounts receivable portfolio reviewed by an experienced financing specialist. Upwise Capital can help identify which invoices qualify and connect your business with the most appropriate accounts receivable financing solution.
The factoring company then assumes responsibility for collecting payment from the customers directly. While factoring provides immediate cash and relieves the business of the collection burden, it also entails giving up control over customer interactions. Ultimately, the choice between invoice factoring vs invoice financing depends on the specific needs and preferences of the business, such as the desired level of control, confidentiality, and the urgency of cash flow requirements.
In the fast-paced world of small business ownership, unexpected challenges can arise at any moment, regardless of how meticulously you plan. When time is of the essence, our Accounts Receivable Financing offers a swift response, providing you with the critical financing you need in as little as 24 hours. With receivables financing, also known as receivable financing or AR financing, you can access the funds tied up in your outstanding invoices, giving you the liquidity you need to seize opportunities and overcome obstacles. Our accounts receivable loans and account receivable financing solutions, including receivables finance and financing receivables, are designed to help businesses of all sizes navigate cash flow challenges without taking on additional debt or diluting equity.
Whether you need accounts receivable funding, an accounts receivable loan, or are exploring accounts receivables financing options, our experienced team of accounts receivable finance professionals is here to help. We offer tailored receivables funding and financing accounts receivable solutions to meet your specific needs. Don’t let a lack of funds hold you back from achieving your goals – take action now to secure the account receivable funding you need to keep your business moving forward. With our accounts recievable financing and account receivable loans, including finance receivables and account receivable loan solutions, you can have peace of mind knowing that you have the financial support to weather any storm and come out on top.
Why Upwise for Receivables Funding
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.
Accounts receivable financing — key information
Provided by Upwise Capital · upwisecapital.com/a-r-financing
Qualification requirements
- Outstanding accounts receivable
- Creditworthiness of your customers
- Invoice aging reports
- Time in business
- Business financial performance
- Industry and customer concentration
Common uses
- Improving cash flow
- Covering payroll expenses
- Purchasing inventory
- Managing seasonal growth
- Taking on larger contracts
- Funding day-to-day operations
- Bridging payment delays from customers
AR financing vs. invoice factoring
- AR financing: Business retains control of collections
- AR financing: Invoices serve as collateral
- AR financing: Structured as a loan or credit facility
- AR financing: Customers pay the business directly
- Factoring: Invoices are sold to a factoring company
- Factoring: Factor manages collections
- Factoring: Funding based on purchased receivables
- Factoring: Customer payments go to the factor
Best for
- B2B companies
- Staffing firms
- Manufacturers
- Government contractors
- Transportation and logistics companies
- Businesses with long customer payment cycles
Key benefits
- Improve cash flow without traditional debt
- Access capital tied up in unpaid invoices
- Funding grows alongside sales volume
- Fast access to working capital
- Supports business growth and expansion
- Maintain operations while awaiting payment
Frequently asked questions
- How much can I receive through accounts receivable financing?
- Funding amounts depend on the value and quality of your outstanding receivables. Many businesses can access up to 95% of eligible invoice value.
- Do my customers need good credit?
- Yes. Since repayment ultimately comes from customer invoices, financing providers often evaluate the creditworthiness of your customers in addition to your business.
- Can I finance only certain invoices?
- In many cases, yes. Program structures vary by lender and financing provider.
- How quickly can I receive funding?
- Many businesses receive funding within 24 to 72 hours after invoices and customer information are reviewed and verified.
- What is the difference between accounts receivable financing and invoice factoring?
- With accounts receivable financing, the business retains control of collections and invoices serve as collateral in a loan or credit facility structure, with customers paying the business directly. With invoice factoring, invoices are sold to a factoring company that manages collections, and customer payments are directed to the factor.
Unlock cash tied up in unpaid invoices. Apply now and get a decision within a few business days.
Apply Now →Final Thoughts on Accounts Receivable Financing
Accounts receivable financing is one of the most effective ways for businesses to unlock cash tied up in outstanding invoices and improve cash flow without waiting 30, 60, or even 90 days for customers to pay. Whether referred to as accounts receivable financing, receivables financing, account receivable financing, AR financing, or financing accounts receivable, this funding solution allows businesses to convert unpaid invoices into immediate working capital.
For many small businesses, delayed customer payments create unnecessary cash flow challenges. In fact, nearly 60% of invoices in the United States are paid late, making it difficult for business owners to cover payroll, supplier obligations, inventory purchases, and operating expenses. Accounts receivable financing allows companies to access cash quickly based on the value of their accounts receivables rather than relying solely on traditional bank loans or business credit scores.
There are several forms of receivable financing available. Invoice financing enables businesses to borrow against outstanding invoices while maintaining responsibility for collections. Invoice factoring involves selling invoices to a factoring company, which advances a percentage of the invoice amount and then collects payment directly from the customer. While both financing options provide fast access to capital, understanding the difference between invoice financing and factoring is important when selecting the right solution for your business.
Most accounts receivable financing companies advance between 80% and 90% of the invoice value, with some providers offering even higher advance rates. For example, certain financing companies may provide up to 97% of eligible invoice value, while others finance 100% of invoice face value under specific programs. Advance rates, fees, and overall costs typically depend on customer credit quality, invoice aging, industry, and transaction volume.
Unlike many traditional bank financing products, receivable financing focuses heavily on the creditworthiness of your customers rather than your own credit score. Most lenders and factoring companies examine the business credit rating, payment history, and financial strength of the companies responsible for paying the invoices. This makes accounts receivable financing an attractive option for businesses with limited operating history, lower credit scores, or companies that may not qualify for conventional business loans.
Many businesses can qualify for AR financing with as little as three months of operating history. The financing process is generally straightforward, with funding often available within 24 hours after approval. Immediate access to cash allows businesses to manage payroll, supplier payments, inventory purchases, equipment expenses, and other operational needs without disruption.
Another advantage of accounts receivable financing is that certain structures do not create new debt on a company’s balance sheet. Rather than taking on a traditional loan, businesses are leveraging existing assets in the form of unpaid invoices to generate working capital. This can improve liquidity while preserving other financing options such as lines of credit, term loans, and commercial lending facilities.
Business owners should also understand the risks associated with receivables financing. In recourse factoring agreements, the business remains liable if customers fail to pay their invoices. Additionally, because some factoring companies interact directly with customers regarding collections, businesses should consider how the arrangement may affect customer perception and relationships. Selecting a reputable financing partner is critical to protecting both cash flow and customer experience.
When evaluating financing options, businesses should compare advance rates, fees, funding speed, customer service, contract terms, collateral requirements, and overall financing costs. The right accounts receivable financing solution can provide flexible access to capital, strengthen cash flow, reduce collection delays, and support continued business growth.
At Upwise Capital, we help businesses compare accounts receivable financing, invoice financing, invoice factoring, lines of credit, and other working capital solutions from a nationwide network of lenders and financing partners. Whether you need funding for payroll, inventory, expansion, supplier payments, or day-to-day operations, our team can help you leverage your outstanding invoices and unlock the cash your business has already earned