What is Accounts Receivable Financing?

Accounts Receivable Financing is when a company turns its A/R (accounts receivable) into ready cash versus waiting 30, 45 or even 90 days for their monies. Banks and Asset Based Lending (ABL) finance companies offer this short-term business funding based on your company’s good A/R using a formula of availability (borrowing base). There may also be spot verification to determine the quality of your accounts receivable.

  • Accounts Payable Financing

    Accounts Payable Financing allows a company to pay its supplier immediately (cash on delivery or COD) without having to use their own working capital. This is also known as trade credit financing. This type of financing gives the company a…

  • Accounts Receivable (A/R)

    Accounts Receivable are monies owed to a company by their customers (another business, a government entity or individual) for goods or services sold on terms. Accounts receivable are a Current Asset on a company’s Balance Sheet. In most businesses, the…

  • Accounts Receivable Factoring

    Also known as A/R factoring, factoring or general factoring. Factoring designed specifically for trucking companies is referred to as freight factoring.

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