Accounts Receivable Financing

Transform delayed invoices and late customer payments into liquidity.

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What Do You Need to Qualify?

large business line of credit

6+ Months in Business

Line of Credit for Large Business

$500,000 in Current Receivables

  • Plus IconWhat Is Accounts Receivable Financing?
  • Plus IconWhat Are the Requirements for Accounts Receivable Financing?
  • Plus IconHow Does Accounts Receivable Financing Work?
  • Plus IconWhat Are the Benefits of Accounts Receivable Financing?
  • Plus IconHow Can You Use Your Accounts Receivable Funding?
  • Plus IconWhy Choose National Business Capital for AR Funding?

What Is Accounts Receivable Financing?

What Is Accounts Receivable Financing?

Accounts receivable financing helps you obtain capital by using receivables as collateral. This may involve invoice factoring, which is the purchase of receivables for cash flow. Accounts receivable financing is a quick and simple path to getting financing. After selling your invoice or book of receivables, the factoring company is responsible for receiving payment—taking this completely off your own plate.

By selling your invoice(s) to a lender, you can get the capital you need to pursue new opportunities or manage cash flow and payroll right away. Because the invoice itself functions as collateral, you won’t have to put up assets or real estate to get this funding.

What Are the Requirements for Accounts Receivable Financing?

What Are the Requirements for Accounts Receivable Financing?

National’s 75+ lender marketplace makes it easy to secure the capital you need to reach your full potential. With one application, you’ll receive multiple offers to choose from. Our knowledgeable Business Finance Advisors help you select the right one for your specific circumstances, leveraging their years of industry experience to help ensure you’re able to grow without limits.

To qualify, all you’ll need is the following:

  • 6+ Months in Business
  • $500,000 in Current Receivables
  • No Minimum Credit Score

That’s right—there’s no minimum credit score requirement.

You’ll also need the relevant business documentation. Each lender may request different documents to determine your eligibility, but here are a few of the most commonly requested:

  • Government-issued ID
  • Business bank statements (at least one year)
  • Business credit score
  • Financial statements
  • Time in business
  • Proof of ownership (K1, schedule C, EIN, certificate of corporation, etc.)
  • Business tax returns
  • Collateral (if you’re applying for a secured loan)
  • Cash flow statements
  • Business plan (especially if you’re applying at a bank)

How Does Accounts Receivable Financing Work?

How Does Accounts Receivable Financing Work?

Accounts receivable financing exchanges your outstanding receivables for short-term funding. The lender collects your invoices, assuming to be paid in time through your clients, and the borrower receives anywhere from 75% to 98% of the total value.

This is a short-term capital solution. In most cases, lenders want to be repaid within 60 to 90 days of receiving your invoices. This is done as clients pay their outstanding invoices to your business, not through a formal repayment schedule.

Unlike other forms of financing, you won’t make payments to your lender physically. The exchange of invoices for cash is the entirety of the transaction between you and the lender, who will recoup the amount as clients pay their invoices.

The lender’s “fee” comes from the total value of your invoices, which translates into the diminished value the borrower receives. Despite the lower value, it’s a great way for businesses to transform late payments into immediate liquidity.

Still, it’s important to work with a reputable, transparent lender, as there have been situations where clients are alerted to the change in ownership of their invoices. At National, you never have to worry about that. Our 75+ lender marketplace contains only the top lending institutions in the country, and we’ll never put you in a position that jeopardizes your relationship with clients.

What Are the Benefits of Accounts Receivable Financing?

What Are the Benefits of Accounts Receivable Financing?

Use Your Last Customer To Bring on the Next One

Transform your accounts receivable into working capital, new equipment, and more with National. Here are a few of the many benefits of our accounts receivable financing solution:

Sell One or Several Invoices

You’re in complete control—sell as many invoices as you’d like.

Get Funded Immediately

The wait for slow customer payments is over—get capital to grow right away.

Manage Cash Flow Gaps

Cover labor costs, material & inventory purchases, and more.

How Can You Use Your Accounts Receivable Funding?

How Can You Use Your Accounts Receivable Funding?

There are no restrictions—use your capital to pursue any opportunity or overcome any challenge!

Business Growth

Buy new equipment or inventory, hire new staff, or prepare for seasonal changes.

Business Expenses

Bridge cash flow gaps between customer payments to cover payroll, vendor bills, and any other expenses.

Business Opportunities

Expand or open a second location, take on more clients, or capitalize on bulk order discounts.

Why Choose National Business Capital for AR Funding?

Why Choose National Business Capital for AR Funding?

Better Terms. Faster Funding. Easier Process.

The limits of success should never be defined by the lack of capital. Yet, in a constantly changing financing market, many entrepreneurs struggle to access the capital they depend on to fuel growth and find success. That’s why in 2007, Joe Camberato set out to create a company that lets entrepreneurs reimagine how they access capital.

With National Business Capital, experience a business lending marketplace built for entrepreneurs, by entrepreneurs.

Discover a time-saving machine that takes approval from months to hours, letting you spend less time chasing capital and more time building your business. Leverage a network of over 75 lending partners to find the right approval for your business and secure capital without compromise. Do it all from an intuitive online platform that centralizes your business lending needs for simpler, streamlined management.

Working with NBC, gain a financing partner for the future, ensuring your business can always access the capital it needs to succeed today and tomorrow.

Unlock the Lowest Rates, Longest Terms, and Highest Amounts

Line of Credit for Large Business

Financing Amount

$100,000 - $5Mil

Time-Saving Machine

Invoice Percentage

90%+ of your aging A/R or outstanding receivables' value


Time to Fund

As Fast as 5 Days

How It Works

You’re only a few clicks away from the capital you need to reach your full potential.

  • 1.Apply Securely Within Minutes

    Move through our streamlined application within minutes and upload your business documents with zero risk.

    Apply Now
  • 2.Review Your Offers

    Compare your offers with expert advice from our team and select the best one for your specific circumstances.

  • 3.Get Funded

    With your money in hand, you can take advantage of opportunities and tackle challenges with confidence.


Accounts Receivable Financing FAQs

What Types of Businesses Typically Use Accounts Receivable Financing?

From eCommerce businesses to construction companies, any business that leverages its accounts receivable can use this type of financing to secure short-term capital, whether through an A/R loan or through factoring.

Are There Any Downsides or Risks Associated With Accounts Receivable Financing?

If you leverage accounts receivable factoring, you’re losing a small percentage of the total value of your invoices. Depending on your business’ standing, this might not be a viable option for your bottom line.

Another potential risk is the possibility that your customers are alerted to the change in ownership of their invoices. This occurs mostly with non-transparent lenders that don’t have their client’s best interest in mind, so make sure to research the company you’re working with extensively before finalizing a contract.

All the risks and downsides come down to the lender you’re working with. You need the right one, and working with National Business Capital makes that process much easier and more straightforward.

How Long Does It Take to Receive Funding Through Accounts Receivable Financing?

If you’re seeking an A/R loan, it can take anywhere from one day to three weeks, depending on the value of your receivables and the type of lender you’re working with. This is because it takes time to collateralize your outstanding invoices.

Factoring, on the other hand, usually moves much faster, with borrowers receiving their funds in five to ten business days.

Can I Use Accounts Receivable Financing if I Have Bad Credit?

Yes! Accounts receivable financing mostly relies on the value of your outstanding invoices, so credit scores play less of a role than other financing products. As long as you have quality receivables that meet or exceed a lender’s minimum requirements, you’ll be able to reach an approval – if you’re working with the right lender for your business.

10 Reasons Why National Business Capital Offers the Best Small Business Financing

BankDirect Lenders


  • 3 Months Bank Statements
  • No Tax Returns Required
  • 2-3 Years Tax Return
  • 2-3 Years Financials
Direct Lenders
  • 3-6 Months Bank Statements
  • 1 Year Tax Return
  • 1 Year Financials


  • One Page – One Minute
  • DocuSign
  • Lengthy
  • Paper Intensive
Direct Lenders
  • Multi-Page Application

Number of Lenders




Direct Lenders


Service Level

Business Advisor



Direct Lenders


Approval Process




Direct Lenders


Speed to Funding




Direct Lenders


Collateral Requirements

Not Necessary



Direct Lenders

Sometimes Required

Business Profitability

Not Necessary


Last 2 Years

Direct Lenders

Sometimes Required

Credit Score

No Minimum FICO


680+ FICO

Direct Lenders

600+ FICO

Credit Check

Soft Pull


Hard Pull

Direct Lenders

Hard Pull

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