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Accounts Receivable Financing

What is Accounts Receivable Financing?

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Accounts receivable financing is a method where your company's unpaid invoices serve as collateral for immediate cash. It typically provides 80% of the invoice value immediately, with the factoring company handling customer payments. Once paid in full, you receive the remaining balance, less a factoring fee. This fee, typically starting at 3% of the invoice total, is based on how quickly your customer pays. Apart from invoices, you can use other receivables like purchase orders and inventory for funding. AR financing, secured by your company's assets or debts, often has more flexible requirements, making it easier to qualify for than traditional business loans, even for startups.

Minimum requirements for accounts receivable financing

To qualify for accounts receivable financing, you generally need a functioning business with creditworthy customers and unpaid invoices that can serve as collateral.

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Annual Revenue


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Credit Score


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Time in Business

6 month minimum

What Documents Are Needed To Apply?

  • Drivers License

  • Voided Business Check

  • Bank Statements 

  • Balance Sheet

  • Profit and Loss Statements

  • Business Tax Return

  • Personal Tax Return

  • Business Plan

  • Business Debt Schedule

Get loan options from multiple lenders

Talk to a business loans specialist at:

(855) 536-3835

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Apply for a term loan in as little as 10 minutes.

1. Complete your application

Answer a few question about your business and your personal loan preferences so we can match you to the lender offering the best rates and terms for your needs.

2. Speak to our underwriter

Meet your personal underwriter here to ensure we have all the documents and information we need to ensure we get you the best options for your business in the shortest amount of time.

3. Review your loan options

Check out the loan options available for your business, choose the one that makes the most sense for you at this time

4. Receive funds

Once you decide what works best, we'll have the capital in your account in less than 24 hours

Benefits of accounts receivable financing

  • Improved Cash Flow: Accounts receivable financing allows businesses to access immediate cash based on their unpaid invoices, eliminating the waiting period associated with customer payments and improving liquidity.

  • Reduced Collection Hassles: With this form of financing, the factoring company handles debt collection, relieving businesses of the time-consuming and sometimes difficult process of chasing down customer payments.

  • Easier Qualification: Compared to traditional financing methods, accounts receivable financing often has more flexible eligibility criteria. It can be particularly beneficial for newer businesses or those with less-than-perfect credit, as it's primarily based on the quality of the receivables rather than the creditworthiness of the business.

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Why Use Lendtek for accounts receivable financing?

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$100M Funded to Small Businesses Throughout the US

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75+ Lenders in our marketplace

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5000+ Loans Funded over 9 years

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