A/R Financing or Factoring is designed to enable manufacturers, wholesalers, distributors, and business service providers to borrow against invoices outstanding and payable by their customers for products and services that have been delivered.

A/R Finance is setup as a revolving line based on average monthly accounts receivable

  • Credit Availability: $50,000 to $10 million or more


  • Borrowing Term: 90 days or less (typical)


  • Contract Term: 1 year renewing. Usual term of facility is > 30


  • % of Invoice: 70 – 90% of Invoice Amount based on industry and credit


  • Pricing: factoring fee(s) and interest on funds deployed, one time setup fee.


  • Expense of Borrowing: Interest and Fees can be in the single digit % to 20% APR or greater based on the volume of A/R, industry, customers list, business credit assessment


  • Security: Recourse and Non-Recourse may be available, UCC, and may require PG.