Unlock the cash sitting in your unpaid invoices. Accounts receivable financing lets you borrow against AR while you keep control of collections.
Check My Eligibility →Accounts receivable (AR) financing lets you borrow against your outstanding invoices — an AR line of credit whose limit grows with your receivables. Unlike factoring, you keep collecting from your customers yourself; the funder holds the receivables as collateral and may take a percentage for a fee.
AR financing suits businesses with large B2B receivables cycles: manufacturers, wholesalers, staffing firms and service businesses. Through BidMyCapital you can compare AR financing offers and lines across multiple lenders.
Your credit limit is based on the value of your outstanding receivables.
New invoices increase your available borrowing capacity.
You collect from customers normally and repay the drawn balance.
AR facilities are priced either as interest on the drawn balance or as a fee on each invoice advanced, plus a small percentage holdback. Total costs typically run equivalent to roughly 10% to 25% APR depending on your receivable turnover.
Invoices from business or government customers.
A meaningful receivables base makes the facility cost-effective.
Customer credit quality determines the advance rate.
Clear invoicing and collection processes speed approval.
AR financing is a borrowing facility secured by receivables that you keep collecting. Factoring is a sale of the invoices where the funder collects from your customers.
Limits scale with receivables, commonly $50,000 to $5 million, advancing 80% to 90% of eligible invoices.
Yes. AR financing is asset-based: your receivables and your customers' payment records matter more than your personal score.
Manufacturing, wholesale distribution, staffing, transportation, healthcare and professional services are the most common.
Most lenders want at least $50,000 in monthly receivables to make the facility worthwhile.